Commons Sense

House of Commons · Ministers' Questions

Local Government Finance Settlement

Monday 19 July 2021 · 2 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Local government finance settlement increased from 49 billion to 51.3 billion.
  • No plans to review the current local government finance settlement.
  • Councils received capacity funding for the levelling-up fund and community renewal fund.

Topics (select to filter)

Questions & Answers

Q1 Chris Matheson Lab
Local Government
Context

The local government finance settlement was discussed, noting an increase in core spending power.

Question

What plans does the Minister have to review the local government finance settlement given the recent increase from £49 billion to £51.3 billion?

Answer from Luke Hall

The local government finance settlement this year was another excellent outcome for councils with an increase in core spending power from £49 billion to £51.3 billion—an increase of 4.6%. There are no plans to review this positive outcome, which was unopposed by the House.

Answered
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Q2 Chris Matheson Lab
Local Government
Context

Councils face challenges with short-term funding, prompting a question about the possibility of a longer-term settlement.

Question

The problem for local councils is the patchwork of funding on a short-term basis. Could there be a three-year settlement that gives councils more time to plan despite less money?

Answer from Luke Hall

First, I would not accept there are cuts for local government spending; this year saw a huge increase. The hon. Gentleman's council received a 4.1% funding increase and has £150 million in reserves. We provided capacity funding to councils for the levelling-up fund and community renewal fund to help them build good business cases and bids.

Partly answered

Not addressed: The answer does not directly address the request for a three-year settlement or longer-term planning flexibility.

How: First, I Would Not Accept, I Do Not Accept His Overall Point

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