Commons Sense

House of Commons · Ministers' Questions

Local Authority Budgets

Monday 16 May 2022 · 3 questions

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

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The 2022-23 local government finance settlement provides 54.1 billion for councils in England, an increase of 3.7 billion from last year's settlement.
  • Bedford Borough Council received an extra 2 million for the settlement year to meet social care pressures and a core spending power increase of 6.5%, worth 9.6 million.
  • The UK Government attributes the challenges in local government spending to the state of public finances when it took power 10 years ago.

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Questions & Answers

Context

Local authorities face financial pressures, with Bedford Borough Council's revenue support grant cut from over £30 million in 2015 to just £6.1 million in 2022-23.

Question

What steps is the government taking to help reduce financial pressures on local authority budgets? Local authorities have been forced to raise council tax precepts due to budget cuts, and adult social care costs are increasing without sufficient funding.

Answer from Kemi Badenoch

The 2022-23 local government finance settlement provides £54.1 billion for councils in England, an increase of £3.7 billion from last year's settlement. This includes over £1 billion to meet social care pressures and a new un-ringfenced services grant worth £822 million. For Bedford Borough Council, we provided an additional £2 million for this settlement year, and the council received a core spending power increase of 6.5%, worth £9.6 million.

Partly answered

Not addressed: When will the fair funding review be published?

How: We Recognise That Adult Social Care Costs Are Increasing, Which Is Why We Have Provided Additional Funding.

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Context

Local authorities face financial pressures, with Bedford Borough Council's revenue support grant cut from over £30 million in 2015 to just £6.1 million in 2022-23.

Question

Due to budget cuts, local authorities have been forced to raise council tax precepts to meet vital costs. Adult social care burdens increase without sufficient funding unless the revenue support grant is increased realistically. When will the fair funding review be published?

Answer from Kemi Badenoch

We recognise adult social care costs are increasing, and we have provided additional funding to Bedford Borough Council with an extra £2 million for this settlement year. The council received a core spending power increase of 6.5%, worth £9.6 million.

Partly answered

Not addressed: When will the fair funding review be published?

How: We Recognise That Adult Social Care Costs Are Increasing, Which Is Why We Have Provided Additional Funding.

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Context

According to the National Audit Office, central government grant funding has been cut by 50% from local authorities since 2010. This results in consequences such as library closures and Sir Rod Stewart doing DIY work.

Question

When will fair funding for local authorities be provided based on genuine need? The current situation is that millions have been taken out of the shared prosperity fund, leading to real consequences like a third of libraries closing.

Answer from Kemi Badenoch

The challenges in local government spending stem from the state of public finances when this Government took power 10 years ago. The hard work over the last decade to repair public finances has enabled additional funding for local government.

Not addressed: At what stage will fair funding be provided based on genuine need?

How: The Reason We Have Had Such Difficulties In Local Government Spending Is The Terrible State Of Public Finances That This Government Found When They Came Into Power 10 Years Ago.

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