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.
We appreciate the difficult context for the setting of the audit fees for 2023/24. Local audit is in an ongoing crisis and this has made the fee setting process more difficult. Nevertheless, we accept that the proposals made by PSAA are the best way of calculating the audit scale fee figures that can be made in the circumstances.
The 31 May deadline should be extended to 30 June for preparing draft (unaudited) accounts for the 2022/23 year and onwards until the current crisis in local audit has been resolved .
We note that the consultation states that the provisional Local Government Finance Settlement will be published in December 2019. We would urge the Government to publish the provisional settlement as soon as possible after 12 December and no later than Parliament rising for the Christmas recess.
The Levelling Up and Regeneration Bill will give the Secretary of State significant additional powers to review and intervene in individual councils, and ultimately to be able to make strong directions, such as capping borrowing or forcing the sale of specific assets.
We note that there are several instances where changes to the Code are being considered in order to bring it into line with international standards, but that the proposal is that the specific changes will not be made because they are not relevant to local authorities. We strongly support this approach. It is our view that international standards should be applied when necessary but will only add complexity if applied when not relevant.
The National Fraud Initiative (NFI) data sharing exercise has been supported by local authorities for several decades now. It has an important place in counter fraud activities, as well as work to recover and reduce error and debt.
We welcome the publication of the Financial Conduct Authority’s (FCA) policy statement, setting out final rules for their implementation of the Markets in Financial Instruments Directive II (MiFID II).
While the Local Government Association welcomes an overall increase in baseline funding for local authorities, we express concern 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 evidence of the financial strain on councils has been growing. The settlement does not provide enough funding to meet the severe cost and demand pressures which have left councils of all political colours and types warning of the serious challenges they face to set balanced budgets next year. Councils in England continue to face a funding gap of £4 billion across this year and next. The 2024/25 provisional settlement does not change the funding gap facing councils.