Commons Sense

House of Commons · Ministers' Questions

Council Funding

Monday 4 December 2023 · 5 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 5 Not answered 0

Key points

  • Councils receive up to 59.7 billion for 2023-24, an increase of up to 5.1 billion from 2022-23.
  • The Government will review local government spending ahead of fiscal events.
  • The current funding formula disadvantages the poorest fifth of councils, who receive 10% below their assessed needs.

Topics (select to filter)

Questions & Answers

Q1 Kate Hollern Lab
Local Government
Context

The effectiveness of the current assessment process is under scrutiny due to concerns about the adequacy of council funding.

Question

What recent assessment has been made of the effectiveness of assessments of relative needs at ensuring the adequacy of council funding?

Answer from Simon Hoare

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.

Partly answered

Not addressed: Did not provide a recent assessment of the effectiveness of relative needs assessments in securing adequate council funding.

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Q2 Sarah Dyke Lib Dem Glastonbury and Somerton
Social Care Local Government
Context

Councils are struggling to provide adequate social care due to increasing costs, inflation, and unequal funding in rural areas.

Question

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?

Answer from Simon Hoare

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.

Partly answered

Not addressed: Did not commit to addressing funding inequality for rural councils specifically.

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Q3 Kate Hollern Lab
Local Government
Context

The current relative needs assessment formula has been postponed, leaving poorer councils underfunded while richer ones receive excess funds.

Question

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?

Answer from Simon Hoare

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.

Partly answered

Not addressed: Did not commit to a specific timeline for the review of the relative needs assessment formula.

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Q4 Ben Bradley Con
Local Government
Context

Local authorities are under significant financial pressure and need more flexibility to make better decisions, particularly in areas like public health and transport.

Question

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?

Answer from Simon Hoare

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.

Partly answered

Not addressed: Did not commit to removing ringfences or providing more flexibility in local government finance.

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Q5 Jim McMahon Labour (Co-op) Oldham West, Chadderton and Royton
Local Government
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.

Question

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?

Answer from Simon Hoare

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.

Partly answered

Not addressed: Did not provide an assessment of how many more councils are at risk of financial distress.

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