Commons Sense

House of Commons · Ministers' Questions

Local Authority Funding

Monday 28 October 2024 · 10 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 10 Not answered 0

Key points

  • Councils across the country are facing significant budget shortfalls and service cuts due to 14 years of underfunding.
  • The government is committed to a multi-year funding settlement and addressing wasteful bidding competitions to support local authorities.
  • The government aims to rebuild the foundation of local government funding and is considering the role of parish and town councils in the devolution agenda.

Topics (select to filter)

Questions & Answers

Q1 Alison Bennett Lib Dem Mid Sussex
Local Government
Context

The question was prompted by concerns over the financial stability and increasing budget deficits faced by local councils across the country.

Question

What steps she is taking to help ensure the financial sustainability of local authorities. Councils face mounting pressure from 14 years of underfunding, leading to significant budget shortfalls and service cuts.

Answer from Jim McMahon

Councils across the country work hard to deliver vital public services. We are committed to moving towards a multi-year funding settlement and ending wasteful bidding competitions. We met political group leaders at the Local Government Association conference to understand specific demand pressures they face.

Partly answered

Not addressed: The answer does not provide concrete steps or commitments for addressing local authority financial sustainability.

How: Under Review, Committed To

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Q2 Will Forster Lib Dem Woking
Social Care Housing Local Government
Context

The local authority in Woking borough has effectively gone bankrupt last year, leading to cuts in essential services.

Question

As the Minister knows—his concern is reflected across the country. Local communities recognise that their council is being forced to choose vital neighbourhood services against targets for adult social care, children's services and homelessness services. Will the Government review which services are classed as statutory and non-statutory?

Answer from Jim McMahon

His concern is reflected across the country. Local communities recognise that their council is being forced to choose vital neighbourhood services against targets for adult social care, children's services and homelessness services. In the end, we need to rebuild the foundation from scratch, and that is exactly what we are committed to doing.

Partly answered

Not addressed: The answer does not provide a commitment to review statutory services or address immediate financial concerns.

How: Committed To

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Q3 James MacCleary Lib Dem Lewes
Agriculture & Rural Affairs Local Government
Context

Parish councils play an important role in service delivery, particularly in rural areas.

Question

My constituency is largely rural and parish councils play an important role. Does the Minister agree about the importance of parish councils to rural communities, and what role does he see for parish councils as part of the Government's devolution agenda?

Answer from Jim McMahon

We will publish a White Paper on the English devolution Bill setting out an ambitious programme for a power shift from this place and Whitehall to combined authorities, local government and communities. We recognise that parish and town councils have a role to play.

Partly answered

Not addressed: The answer does not specify concrete commitments or actions regarding the devolution agenda for parish councils.

How: Committed To

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Q4 Bell Ribeiro-Addy Lab Clapham and Brixton Hill
Housing Local Government
Context

Local authorities face rising demand, costs, and cuts due to Conservative public sector austerity measures.

Question

Rising demand, rising costs and 14 years of Conservative public sector cuts mean that many local authorities are at breaking point. Lambeth is particularly affected with higher demand for social housing and temporary accommodation. Will the Minister commit to an emergency increase in funding?

Answer from Jim McMahon

We are committed to repairing the foundations with multi-year financial settlements that will give security. We recognise that demand-led pressures in many places relate to larger problems such as the housing crisis and children's services.

Partly answered

Not addressed: The answer does not provide a commitment to an emergency funding increase or update of the funding formula.

How: Committed To

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Q5 Alison Bennett Lib Dem Mid Sussex
Social Care Local Government
Context

West Sussex county council faces a cumulative budget gap of over £200 million for 2029-30, with rising expenditure on social services.

Question

The financial future of West Sussex county council is bleak. It faces a cumulative budget gap of over £200 million for 2029-30, and 64% of the council's budget is spent on adult and children's social services, which is set to rise. How will the Minister ensure that councils do not have to cut essential services?

Answer from Jim McMahon

We say local government is paid for one way or the other: either we pay at the front-end through fair funding being fairly distributed across the country, or we pay at the back-end because eventually the system falls over and we must repair the damage.

Partly answered

Not addressed: The answer does not provide specific measures to ensure essential services are maintained without cuts.

How: Committed To

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Q6 Jonathan Brash Lab Hartlepool
Social Care Local Government
Context

Hartlepool borough council is set to overspend on children's social care by £5 million due to high charges levied by private sector providers.

Question

This year, Hartlepool borough council is set to overspend on children's social care by some £5 million. What can the Minister do to cap those providers' charges?

Answer from Jim McMahon

I recognise that, in large part, children's services are funding pressures driving council budgets. We want to see far more resilience built back into the system, and there are examples today of councils building public sector provision back into the marketplace.

Partly answered

Not addressed: The answer does not provide concrete actions or commitments for capping providers' charges.

How: Committed To

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Q7 Sam Rushworth Lab Bishop Auckland
Local Government
Context

County Durham's budget was cut by 60% under the previous government, impacting the council's ability to deliver services.

Question

The previous Government cut County Durham's budget by 60%, and we have all seen the Royal Tunbridge Wells video in which the Leader of the Opposition boasted about that act. Will the Minister consider a discussion with Cabinet colleagues about revising those funding formulas?

Answer from Jim McMahon

We are carrying out a funding review and want to ensure that we do not pit one council against another. We have to accept that there is no fair funding at all if funding does not reflect the deprivation in an area.

Partly answered

Not addressed: The answer does not provide a commitment to revising funding formulas or addressing past cuts.

How: Committed To

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Q8 Kemi Badenoch Con North West Essex
Local Government
Context

The question arises from a previous assurance given by the Secretary of State that there would be no plans to increase council tax for anyone. However, when questioned specifically about retaining the single occupant discount, the response was less clear.

Question

At the last oral questions, the Secretary of State assured me that she had no plans to increase council tax for anyone. However, when pressed by my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), she would not give the same guarantee that the single occupant discount would be retained. Will Ministers take the opportunity to do so now?

Answer from Jim McMahon

I can see the shadow Secretary of State making that point repeatedly, because at this stage we are all waiting for the statement and the Budget that will contain that information, but I can say that the right decisions will be made in the interests of working people. We recognise the cost of living crisis that is being faced across the country.

Partly answered

Not addressed: The specific commitment to retain the single occupant discount was not provided.

How: Waiting For The Statement And Budget

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Q9 Kemi Badenoch Con North West Essex
Employment Local Government
Context

The impact assessment for the Employment Rights Bill suggests that it will increase costs, which local authorities are likely to pass on. The question seeks clarity on whether these impacts have been assessed and if councils will be compensated.

Question

Local authorities employ 2 million people and commission services such as adult social care. The impact assessment for the Secretary of State's Employment Rights Bill says that the Bill will increase costs. Those costs are likely to be passed on to councils, so has the Secretary of State assessed the impact of the Employment Rights Bill and an increase in employers' national insurance specifically on local authorities? If costs do increase, will local councils be compensated?

Answer from Jim McMahon

Any decisions related to the Budget will be taken at the appropriate time, as will any decisions on the local government finance settlement. What I can say, though, is that this is a new partnership from this Government: we are not locking local government out, but standing shoulder to shoulder with it. Only last week at the Local Government Association conference in Harrogate, the Secretary of State launched the leaders' council, a forum where central and local government will reset that relationship.

Partly answered

Not addressed: The specific assessment of impact on local authorities was not addressed.

How: Waiting For The Budget, New Partnership

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Q10 Vikki Slade Lib Dem Mid Dorset and North Poole
Housing
Context

Rough sleeping is a severe issue with significant health impacts. The rough sleeping initiative is saving lives, but it is set to end in March 2025, causing concern among local authorities about future funding and planning.

Question

Rough sleeping is the most visible end of the homelessness crisis, but it is also brutal—the average age of death for rough sleepers in London is just 44. The rough sleeping initiative is literally saving lives—in Bournemouth, Christchurch and Poole, 102 people are kept alive every year through that programme—but it is due to end in March 2025. Removing it has been described by local teams as nothing short of catastrophic, so what assessment has taken place of the impact of that initiative, and what assurance can the Secretary of State give local authorities about the maintenance of the scheme so that they can plan for the long term?

Answer from Jim McMahon

Again, I ask hon. Members to wait for the spending review on Wednesday, and for the provisional settlement in December. We are under no illusion about the pressures faced by councils on homelessness. In the end, we need to repair the system, which is about providing safe, secure and affordable housing for people to live in. We will do that, but we also recognise that there is a problem today.

Partly answered

Not addressed: The specific assessment of impact was not provided, nor were assurances given for future maintenance of the scheme.

How: Waiting For Spending Review

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