Council Budget Deficits 2024-01-22
2024-01-22
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Councils face significant financial pressures leading to deficits. The question seeks an assessment of the causes and implications.
What assessment has been made of the causes of council budget deficits? The Department works closely with local government and other departments to understand demand and cost pressures, but specific details on assessments are requested.
The Department works closely with the local government sector and other Departments to understand specific demand and cost pressures. The provisional local government finance settlement for 2024-25 makes available over £64 billion—an increase in core spending power of almost £4 billion or 6.5% in cash terms.
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Assessment & feedback
Did not provide a detailed assessment of the causes of council budget deficits, only general information on finance settlement and support for councils.
Under Review
Response accuracy
Q2
Partial Answer
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Context
Devon County Council is using its broadband clawback money to close a £7.8 million deficit, which was intended for improving rural areas' connectivity.
What plans does the Minister have for next year when Devon County Council uses its broadband clawback money to cover day-to-day expenses? The hon. Gentleman's concern is noted about misuse of funds and the impact on businesses.
If the money from that Department is ring-fenced, it is not at the discretion of the county councillors where they use it; they have to use it for that purpose. I would take the hon. Gentleman's concern a little more seriously if he had taken part in the parliamentary engagement.
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Assessment & feedback
The issue was changed by suggesting the hon. Member should have engaged more in parliamentary processes rather than addressing the misuse of funds.
Taking Seriously
Response accuracy
Q3
Partial Answer
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Context
The MP's Liberal Democrat council colleagues in Bath are bringing social care back in-house. However, the council is under severe financial strain and requires additional funding.
Will the Minister commit to extra funding to allow Bath & North East Somerset Council to deliver vital social care services? The council faces significant financial pressure but is implementing innovative solutions.
Adult social care is a demand on all upper-tier authorities. I commend BANES Council on the work it is doing; that is precisely the demonstration of flexibility and innovation in local government that we look for to deliver quality services in a cost-efficient way.
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Assessment & feedback
Did not commit to providing extra funding, only praised the council's innovative approach without addressing the specific ask for additional funds.
Flexibility And Innovation
Response accuracy
Q4
Partial Answer
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Context
Shropshire Council has made significant efficiency savings but still faces challenges in reducing the deficit. The MP seeks further support from the Minister.
Could the Minister look at the rural services delivery grant to see what more can be done for large rural counties like Shropshire? Councillor Lezley Picton is praised for his work despite financial challenges.
I am grateful to my hon. Friend and for the work that Councillor Picton does as the leader of his council. He is absolutely right to point to the continued importance of innovation, change and reform to ensure value for money—that is key—and to highlight the importance of the rural services delivery grant.
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Assessment & feedback
Did not commit to reviewing or providing additional funding from the rural services delivery grant.
Innovation, Change And Reform
Response accuracy
Q5
Partial Answer
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Context
Rural councils face higher energy costs due to the Ukraine war. The MP requests a meeting to discuss fair funding formulas.
Could I have a meeting with my hon. Friend to talk about the fair funding formula, to make sure that rural councils are properly funded in this next settlement? Rural councils struggle with high energy and labour costs.
As a rural Member of Parliament, I am tempted to tell my hon. Friend that he will be preaching to the choir, but of course I am happy to meet him. He points to the challenges that rural councils face in delivering services in areas that are wide in geography and sparse in population.
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Assessment & feedback
Did not commit to a fair funding formula or meeting outcomes.
Rural Member Of Parliament
Response accuracy
Q6
Partial Answer
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Context
Councils face an immediate £2.6 billion funding gap due to rising costs and the impact of the Conservative government's policies.
How many councils have applied for exceptional financial support, and will pressures in adult social care, children's services and homelessness be fully met in the financial settlement? Councils are being pushed to financial brink with significant funding gaps.
It is not policy for us to comment individually on councils that are seeking advice from or engagement with officials, but I am grateful to the hon. Gentleman for his question, because it gives me the opportunity to put on record that my Department and I stand ready to engage with all those councils who wish to discuss their financial circumstances.
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Assessment & feedback
Did not provide specific figures or commitments regarding exceptional support or meeting funding needs in social care, children's services, and homelessness.
Engagement
Response accuracy