Commons Sense

House of Commons · Ministers' Questions

Local Authority Funding

Monday 11 January 2021 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 2 Not answered 0

Key points

  • Government plans to increase funding for local authorities in 2021-22 by 2.2 billion, providing an average cash increase of 4.5%.
  • Leicestershire will receive a 5.5% increase in core spending power and more than 11.5 million to deal with covid pressures.
  • Councils have been provided with an unprecedented 10 billion package of covid-related support over the next two years.

Topics (select to filter)

Questions & Answers

Q1 Joy Morrissey Con Beaconsfield
Local Government
Context

The question arises from the need to provide additional financial support to councils amid economic challenges.

Question

What plans the Government have to increase funding for local authorities in 2021. May I thank the Minister for his covid cash for councils? Will he confirm that the Government will ensure that councils have the financial support they need to respond to covid-19 and support their local communities?

Answer from Luke Hall

We are increasing funding for councils in 2021-22. Through the local government finance settlement, we are making an extra £2.2 billion available to councils, with an average cash increase of 4.5%—a real-terms increase. We have also announced £3 billion of covid-19 support for next year, taking our total direct support for local government in responding to the pandemic to more than £10 billion. Buckinghamshire will benefit from more than £54 million of covid support this year and £11 million for next year.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q2 Luke Evans Con Hinckley and Bosworth
Local Government
Context

Leicestershire has been underfunded compared to other regions, with a disparity of £374 per resident if it were funded at the same level as London.

Question

I am grateful to the Minister for the announcement of the extra cash, particularly the covid cash, in these difficult times. He will know from our many meetings in the year since I was elected about my concern on fairer funding for Leicestershire. If Leicestershire were funded at the same level as London, it would receive an extra £374 per resident. Will he update me on the formula that underpins the structure and whether there will be a review? Is this likely to change? If so, when?

Answer from Luke Hall

Leicestershire will see an increase of 5.5% in its core spending power next year and receive more than £11.5 million to deal with covid pressures. The Government certainly agree that we need an updated and fairer method for distributing funds within local government. I hope he understands that this year we have had to focus on supporting councils through the pandemic, but once this is over we will revisit our shared priority of funding reform.

Partly answered

Not addressed: Timelines for review and specific changes to the formula are not provided.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q3 Joy Morrissey Con Beaconsfield
NHS Housing Local Government
Context

Concerns about whether Buckinghamshire council will have sufficient funds to manage throughout the pandemic and provide care for residents.

Question

May I thank the Minister for his covid cash for councils? Will he confirm that the Government will ensure that councils have the financial support they need to respond to covid-19 and support their local communities? In places such as Bucks, particularly, our council is doing a fantastic job but there is a lot of concern about whether it will have the financial support to carry on throughout the pandemic and make sure that care is taken of all the residents.

Answer from Luke Hall

Councils are the unsung heroes of the response to this pandemic and we are standing squarely behind them. We have provided an unprecedented package of covid-related support for councils, which is now worth £10 billion over this year and next year. It includes £1 billion of unring-fenced funding, as well as support with lost income from tax, sales, fees and charges.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q4 Steve Reed Labour (Co-op) Streatham and Croydon North
Social Care Local Government
Context

The Labour party criticizes the government's approach to funding local councils during a severe economic downturn, highlighting the dilemma between raising council taxes or cutting social care.

Question

May I take this opportunity to congratulate Christina McAnea on being elected the general secretary of Unison? Let me turn to the Minister. How is it fair to force councils to choose between hiking up council tax for hard-working families during the worst recession in 300 years, or cutting social care for older parents and grandparents during an unprecedented global health pandemic?

Answer from Luke Hall

We are putting in an extra £2.2 billion next year to ensure that local government has the resources it needs to emerge stronger from the pandemic. We are also giving councils the flexibility to defer any increases in council tax next year if they believe that is right for their community. If the Opposition Front-Bench team looked at the detail of what we are proposing, they would see that we have provided £670 million to help councils to support people who are least able to pay council tax.

Partly answered

Not addressed: Specifics on avoiding higher council taxes or cutting social care are not addressed directly.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email