On behalf of its membership, the cross-party LGA regularly submits to Government
consultations, briefs parliamentarians and responds to a wide range of parliamentary inquiries. Our recent
responses to government consultations and parliamentary briefings can be found here.
While the LGA welcomes an overall increase in baseline funding for local authorities, are concerned that a significant proportion of the increase in core spending power for 2023/24 has been achieved through a combination of potentially one-off grants, ring-fenced funding, re-allocation of existing funding, and the assumption that local authorities will implement council tax increases. We continue to make the case for multi-year settlements and for more long-term certainty around funding and budgets.
The consultation paper was issued before strict measures were implemented to address the COVID-19 pandemic. However, the financial environment for local government has changed so profoundly that we cannot overlook the issue.
The valuation of non-investment assets for financial reporting purposes has been a contributory factor to the current crisis in local audit and how the valuation of such assets is audited is an area that needs to be addressed if the crisis is to be solved. Clearly how the assets are valued in the first place is an important step in that and we are in broad agreement with the proposals in the consultation for most asset classes. However, the proposals for valuing networked assets (usually called “infrastructure assets” in local authorities) will cause significant problems and additional costs for councils and we suggest that an alternative and more practical approach should be taken to valuing them.
Business rates account for around a quarter of all council spending power. Money raised is used to pay for vital local services, such as caring for older and disabled people, protecting children, fixing potholes and collecting bins.
We are deeply concerned that the proposed risk-mitigation measures in clause 71 of the Bill potentially give the Secretary of State significant powers to intervene in a local authority. There is a danger that the formula-based approach outlined in the Bill could impact more widely than intended. It is vital that the Government undertakes full engagement with the sector, including full consultation before enacting the regulations arising from the Bill.
In this submission we detail the unfunded cost pressures facing local government and why, with many local services facing significant funding gaps, it is vital that the Budget recognises that councils cannot continue without sufficient and sustainable resources.