Commons Sense

House of Commons · Ministers' Questions

Local Authority Funding

Monday 10 July 2023 · 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 0 Partly answered 4 Not answered 0

Key points

  • Local authorities received additional billions in subsidies for the financial year 2023-24.
  • Bury Council received nearly 7 million in grant funding for adult social care in the last financial year.
  • An additional 100 million was allocated for vulnerable households through local authorities.

Topics (select to filter)

Questions & Answers

Q1 Gareth Bacon Con Orpington
Local Government
Context

Councils have faced significant challenges since the onset of the covid pandemic, impacting their ability to provide essential services. The question arises from concerns about whether local authorities are receiving adequate funding to manage these increased costs and demands.

Question

What recent assessment has my Department made on the adequacy of local authority funding given the financial pressures councils face since the start of the covid pandemic?

Answer from Lee Rowley

We recognise that councils have faced challenges since the onset of the covid pandemic. Additional billions in subsidies were allocated to local authorities in the financial year 2023-24, demonstrating our commitment to supporting them during these difficult times.

Partly answered

Not addressed: The question asked for a recent assessment on funding adequacy, but no specific departmental report or analysis was provided. The answer focused more on the allocation of funds rather than an assessment of their sufficiency.

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Q2 Christian Wakeford Lab Bury South
Economy Local Government
Context

Council budgets have been strained by a combination of increased service demands, rising fuel costs, and inflationary pressures. These factors have led to concerns among the public about the sustainability of vital local government services.

Question

Given that council budgets are heavily impacted by post-covid financial constraints, demand for services is increasing, fuel prices are high, and inflation is soaring, can the Minister specify what immediate support measures exist to ensure councils can maintain essential service provision?

Answer from Lee Rowley

Additional grant funding of nearly £7 million was provided to Bury Council in the last financial year for adult social care. This demonstrates our commitment to supporting councils in addressing increased demands on services.

Partly answered

Not addressed: The question sought a comprehensive overview of support measures available, but the answer only mentioned specific funding for one council without detailing broader national support mechanisms.

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Q3 Gareth Bacon Con Orpington
Local Government
Context

There is a view that multi-year financial settlements could provide greater stability and predictability for local authorities, particularly those with good track records like Bromley Council.

Question

Would my hon. Friend support the idea of introducing multi-year funding settlements to aid local government finance management and reward high-performing councils? Would he consider commissioning a review on this matter?

Answer from Lee Rowley

Multi-year financial settlements are desirable, and we aim to return to them in future Parliaments. A policy statement has been issued for the 2024-25 financial year to provide clearer guidance for councils regarding spending reviews.

Partly answered

Not addressed: The question asked about commissioning a review, but no commitment was given to initiating such an assessment.

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Q4 Paula Barker Lab Liverpool Wavertree
Economy Housing Benefits & Welfare
Context

Councils face significant budget constraints impacting their ability to administer discretionary housing payments, which are crucial in preventing homelessness. The figures indicate a reduction in these funds.

Question

Discretionary housing payments have seen cuts of £40 million from 2021-22 levels and will remain flat for the next two years despite increasing demand and inflation pressures. Section 21 evictions are rising, rent arrears are soaring, and households face forced temporary accommodation. Given the Department's responsibility for homelessness, when will it intervene with Treasury and DWP to address this issue?

Answer from Lee Rowley

Additional £100 million was allocated for vulnerable households, administered through local authorities, reflecting our commitment to both councils and society's most vulnerable members.

Partly answered

Not addressed: The question sought a specific timeline or intervention plan with other departments but received no concrete commitment.

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