Council Funding 2023-12-04
2023-12-04
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The effectiveness of the current assessment process is under scrutiny due to concerns about the adequacy of council funding.
What recent assessment has been made of the effectiveness of assessments of relative needs at ensuring the adequacy of council funding?
We are closely monitoring budgets and service delivery with sector representative bodies. The local government finance settlement for 2023-24 provides up to £59.7 billion, an increase of up to £5.1 billion in cash terms on 2022-23. We will continue to review spending ahead of fiscal events and announce funding for next year's finance settlement later this month.
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Assessment & feedback
Did not provide a recent assessment of the effectiveness of relative needs assessments in securing adequate council funding.
Response accuracy
Q2
Partial Answer
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Context
Councils are struggling to provide adequate social care due to increasing costs, inflation, and unequal funding in rural areas.
May I take this opportunity to wish Mr Speaker a speedy recovery? Councils provide essential services such as adult and children's social care. Without action, lives will be foreshortened. Will the fair funding review address the unequal way rural councils are funded?
The hon. Lady raises an important point about the challenge of delivering quality services in rural areas due to higher costs and sparse populations. We will look at all pressures on local government to see what we can do during the settlement.
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Assessment & feedback
Did not commit to addressing funding inequality for rural councils specifically.
Response accuracy
Q3
Partial Answer
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Context
The current relative needs assessment formula has been postponed, leaving poorer councils underfunded while richer ones receive excess funds.
Under the current formula, the poorest fifth of councils receive 10% below their assessed needs, while the richest get 15% above. A review of the formula, which is over a decade old, has been repeatedly postponed. When will the review finally take place?
We can spend time discussing the formula but our crucial task is to deliver a settlement that works for local government and delivers services. The exact timing of reviewing the minutiae of the formula has not been provided.
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Assessment & feedback
Did not commit to a specific timeline for the review of the relative needs assessment formula.
Response accuracy
Q4
Partial Answer
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Context
Local authorities are under significant financial pressure and need more flexibility to make better decisions, particularly in areas like public health and transport.
The Minister will be aware of Nottingham's unique situation following decades of poor decisions. The whole sector is under significant pressure. Will the Government allow more flexibility in the system to remove ringfences in public health and transport?
I am happy to work with anybody who wants to ensure that our local authorities can stand up and deliver, as long as they accept accountability and responsibility for the decisions they take. We have a proud record of working in trust with our local councillors and councils.
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Assessment & feedback
Did not commit to removing ringfences or providing more flexibility in local government finance.
Response accuracy
Q5
Partial Answer
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Context
Tory-led Northamptonshire County Council issued a section 114 notice due to poor management. Further councils from across the political spectrum have followed suit. Moody's warned that more local authorities will fail over the near term.
In 2018, Tory-led Northamptonshire County Council issued a section 114 notice. Since then, eight other councils did exactly the same. In September, Moody's warned that more local authorities will 'fail over the near term.' By the Government's own assessment, how many more councils are at risk between now and budgets being set next year?
Nobody doubts that section 114 is a serious issue. We work with councils to see what we can do to help and ensure they continue to deliver for their voters.
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Assessment & feedback
Did not provide an assessment of how many more councils are at risk of financial distress.
Response accuracy