Commons Sense

House of Commons · Ministers' Questions

Council Budget Deficits

Monday 22 January 2024 · 6 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

  • The Department works closely with local government and other departments to understand specific demand and cost pressures.
  • If the money from that Department is ring-fenced, it is not at the discretion of the county councillors where they use it; they have to use it for that purpose.
  • Rural councils struggle with high energy and labour costs, and the fair funding formula is sought to ensure proper funding in the next settlement.

Topics (select to filter)

Questions & Answers

Q1 Wera Hobhouse Lib Dem Bath
Local Government
Context

Councils face significant financial pressures leading to deficits. The question seeks an assessment of the causes and implications.

Question

What assessment has been made of the causes of council budget deficits? The Department works closely with local government and other departments to understand demand and cost pressures, but specific details on assessments are requested.

Answer from Simon Hoare

The Department works closely with the local government sector and other Departments to understand specific demand and cost pressures. The provisional local government finance settlement for 2024-25 makes available over £64 billion—an increase in core spending power of almost £4 billion or 6.5% in cash terms.

Partly answered

Not addressed: Did not provide a detailed assessment of the causes of council budget deficits, only general information on finance settlement and support for councils.

How: Under Review

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Q2 Richard Foord Lib Dem Honiton and Sidmouth
Science & Technology Local Government
Context

Devon County Council is using its broadband clawback money to close a £7.8 million deficit, which was intended for improving rural areas' connectivity.

Question

What plans does the Minister have for next year when Devon County Council uses its broadband clawback money to cover day-to-day expenses? The hon. Gentleman's concern is noted about misuse of funds and the impact on businesses.

Answer from Simon Hoare

If the money from that Department is ring-fenced, it is not at the discretion of the county councillors where they use it; they have to use it for that purpose. I would take the hon. Gentleman's concern a little more seriously if he had taken part in the parliamentary engagement.

Not addressed: The issue was changed by suggesting the hon. Member should have engaged more in parliamentary processes rather than addressing the misuse of funds.

How: Taking Seriously

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Q3 Wera Hobhouse Lib Dem Bath
Social Care Local Government
Context

The MP's Liberal Democrat council colleagues in Bath are bringing social care back in-house. However, the council is under severe financial strain and requires additional funding.

Question

Will the Minister commit to extra funding to allow Bath & North East Somerset Council to deliver vital social care services? The council faces significant financial pressure but is implementing innovative solutions.

Answer from Simon Hoare

Adult social care is a demand on all upper-tier authorities. I commend BANES Council on the work it is doing; that is precisely the demonstration of flexibility and innovation in local government that we look for to deliver quality services in a cost-efficient way.

Partly answered

Not addressed: Did not commit to providing extra funding, only praised the council's innovative approach without addressing the specific ask for additional funds.

How: Flexibility And Innovation

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Q4 Mark Pritchard Con The Wrekin
Agriculture & Rural Affairs Local Government
Context

Shropshire Council has made significant efficiency savings but still faces challenges in reducing the deficit. The MP seeks further support from the Minister.

Question

Could the Minister look at the rural services delivery grant to see what more can be done for large rural counties like Shropshire? Councillor Lezley Picton is praised for his work despite financial challenges.

Answer from Simon Hoare

I am grateful to my hon. Friend and for the work that Councillor Picton does as the leader of his council. He is absolutely right to point to the continued importance of innovation, change and reform to ensure value for money—that is key—and to highlight the importance of the rural services delivery grant.

Partly answered

Not addressed: Did not commit to reviewing or providing additional funding from the rural services delivery grant.

How: Innovation, Change And Reform

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Q5 George Freeman Con Mid Norfolk
Agriculture & Rural Affairs Local Government
Context

Rural councils face higher energy costs due to the Ukraine war. The MP requests a meeting to discuss fair funding formulas.

Question

Could I have a meeting with my hon. Friend to talk about the fair funding formula, to make sure that rural councils are properly funded in this next settlement? Rural councils struggle with high energy and labour costs.

Answer from Simon Hoare

As a rural Member of Parliament, I am tempted to tell my hon. Friend that he will be preaching to the choir, but of course I am happy to meet him. He points to the challenges that rural councils face in delivering services in areas that are wide in geography and sparse in population.

Partly answered

Not addressed: Did not commit to a fair funding formula or meeting outcomes.

How: Rural Member Of Parliament

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Q6 Jim McMahon Labour (Co-op) Oldham West, Chadderton and Royton
Social Care Housing Local Government
Context

Councils face an immediate £2.6 billion funding gap due to rising costs and the impact of the Conservative government's policies.

Question

How many councils have applied for exceptional financial support, and will pressures in adult social care, children's services and homelessness be fully met in the financial settlement? Councils are being pushed to financial brink with significant funding gaps.

Answer from Simon Hoare

It is not policy for us to comment individually on councils that are seeking advice from or engagement with officials, but I am grateful to the hon. Gentleman for his question, because it gives me the opportunity to put on record that my Department and I stand ready to engage with all those councils who wish to discuss their financial circumstances.

Not addressed: Did not provide specific figures or commitments regarding exceptional support or meeting funding needs in social care, children's services, and homelessness.

How: Engagement

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