• Home
  • About
  • Subscribe
  • LATIF
  • Conferences
  • Dashboard
  • Edit My Profile
  • Log In
  • Logout
  • Register
  • Edit this post

Room 151

  • 151 BRIEF

    What's New?

  • EAPF criticised for water company investments

    August 10, 2022

  • Welsh pension fund confirms £50m investment in clean energy

    August 10, 2022

  • Inflation ‘disastrous’ for local services, warns LGA

    August 10, 2022

  • Consultation opens into care charging reforms

    August 9, 2022

  • ADASS survey: ‘worst fears confirmed for adult social care’

    August 5, 2022

  • GMCA to unlock funds for home energy-efficiency upgrades

    August 4, 2022

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews
  • Briefs

Government quells back bench settlement rebellion with extra £150m

0
  • by Colin Marrs
  • in 151 News · Funding · Resources
  • — 8 Feb, 2018
Sajid Javid

Photo (cropped) FOC, Flickr, CC

Government has headed off a rebellion by backbench Tory MPs over the local government settlement after promising an extra £150m for social care.

MPs voted (Wednesday, 7 Feb) to approve the settlement, which will see a reduction in revenue support grant paid to councils from £5.0bn this year to £3.6bn in 2018/19.

Conservative MPs which had threatened to vote against the original settlement, announced before Christmas, were brought into line after the extra £150m was announced.

Citing the government’s “spending power” calculation, communities secretary Sajid Javid told the House of Commons: “I can confirm that there will be a real-terms increase in resources for local government over a two-year period, rising from £44.3bn in 2017-18 to £45.6bn in 2019-20.

“I should clarify, however, that due to the additional £166m that was announced this year, that is a real-terms increase over the two-year period rather than year-on-year.”

Jim McMahon, shadow housing, communities and local government minister, slammed the Conservatives who voted for the settlement.

He said: “Do Conservative back benchers really want this charade at this point in the calendar every year? We know that there is not enough money to fund public services, but they hold their nose because they have been bought off with a couple of pounds. ​They absolutely understand, in the way that all opposition members do, that the cuts have gone too far and that our communities deserve better.”

Government will use a needs-based formula to distribute an extra £150m unveiled in the local government settlement to boost social care.

Communities Sajid Javid published the final settlement this week, saying the additional cash will be available to councils in 2018/19.

It comes on top of an additional £2bn for social care announced at last years’ Spring Budget, which is to be spread over three years from 2017/18.

Also, speaking in the Commons debate on the settlement, Clive Betts, chairman of the communities and local government select committee, warned that the government’s fair funding review was unlikely to solve problems with local government funding.

He said: “Of course it is right to review needs assessments every so often, and the select committee has put forward some evidence, following research we had commissioned on that review.

“But in the end, this is a zero-sum game, because when one council gains from the review, another will lose.

“What came out clearly from our evidence session on Monday—I believe that this was said by the Conservative leaders—is ​that if the cake is not large enough, the fair funding review will probably end up being seen by no one as fair at all.”

Javid also addressed concerns about “negative revenue support grant” raised by some MPs.

He said: “Changes in revenue support grant have led to a downward adjustment of some local authorities’ business rates top-up or tariff for 2019-20.

“We know we must address that problem, and we will consult formally on a fair and affordable set of options for doing so, with plenty of time to reflect on the findings before next year’s settlement.”

In addition, the government has announced the continuation for the next three years of freedoms for councils to spend capital receipts from the sale of their own assets to help fund the transformation of services.

Paul Carter, chairman of the County Councils Network and leader of Kent County Council, said: “Today’s announcement of an extra £166m for local government is the result of a measured campaign by the County Councils Network, supported by county MPs and county leaders, who collectively put forward a persuasive and clear case to the government, which has been recognised and acted upon by Sajid Javid.

“The announcement of funding for upper-tier authorities and rural districts shows that CCN has secured additional resource for councils of all types.”

Get the Room151 Newsletter

Share

You may also like...

  • A “proper” transitional system could improve funding predicatability 21st Apr, 2021
  • How a digital revolution is upon us 7th Feb, 2022
  • Spending review: A lift from grant funding, rising gilt prices and inflation worries 28th Oct, 2021
  • Investors ‘potentially damaging housing business models’, MOTB attendees told 28th Mar, 2022

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • 151 BRIEFS – WHAT’s NEW?

    • Inflation ‘disastrous’ for local services, warns LGA
    • Consultation opens into care charging reforms
    • ADASS survey: ‘worst fears confirmed for adult social care’
    • GMCA to unlock funds for home energy-efficiency upgrades
    • Levelling up committee calls for urgent boost to social care funding
  • Room151’s LGPS Roundtables

    Biodiversity
    Valuations & Risk
    LGPS Women

  • Room151’s LGPS Roundtables

    Biodiversity
    LGPS Women
    Valuations & Risk
  • Latest tweets

    Room151 9 hours ago

    LATIF/FDs’ Summit ‘on course to be biggest yet’: Room151’s flagship event – the Local Authority Treasurers Investment Forum (LATIF) and FDs’ Summit – is on course to be the biggest yet, with more than 200 delegates expected. Combining[...] dlvr.it/SWSDrL pic.twitter.com/f8FXzcAdWB

    Room151 12 hours ago

    ‘Local government treated worse than any other part of public sector’: Clive Betts, chair of the Levelling Up, Housing and Communities Committee, talks to Mike Thatcher about lack of progress on levelling up, pork-barrel politics and why local government… dlvr.it/SWRk1L pic.twitter.com/Jpw0BsOsy3

    Room151 2 days ago

    Which LGPS pools and funds are attending the LGPS Investment Forum on Nov 2 & the LGPS Private Markets Forum on Nov 1st? Answer here: lnkd.in/eDHU8tuy pic.twitter.com/D3gd63Rh7F

    Room151 2 days ago

    LGPS and levelling up: nothing to fear but fear itself: There have been a number of objections to government plans for LGPS funds to invest 5% of their assets in local projects. But George Graham says these objections can be[...] dlvr.it/SWL7vt pic.twitter.com/ebwBEkZTy4

    Room151 2 days ago

    George Graham @SYpensions @bordertocoast channels his inner FDR in a call for local government pension funds to avoid the fear factor and embrace levelling up #LGPS #localgov room151.co.uk/local-governme…

    Room151 3 days ago

    Changes to rules on capital receipts raise wider questions: Stephen Kitching argues that DLUHC’s latest rule changes are part of a series following on from revisions to MRP guidance and the purchase of commercial property. He questions whether… dlvr.it/SWGqKC pic.twitter.com/Ycr5hWZDPk

    Room151 6 days ago

    ‘No ifs, no buts’: the Bank of England continues its battle with inflation: Partner Content: CCLA Investment Management’s Robert Evans discusses the MPC’s 0.5% increase in the Official Bank Rate and its ongoing commitment to the 2% inflation target… dlvr.it/SW7SNC pic.twitter.com/ryOzYRSNA9

    Room151 1 week ago

    DLUHC changes rules on flexible use of capital receipts: The levelling up secretary has written to all council leaders to amend the rules concerning the flexible use of capital receipts to fund transformation projects. In his letter, Greg Clark[...] dlvr.it/SW3jyX pic.twitter.com/KEhSSaMITl

    Room151 1 week ago

    Local audit and financial reporting: let’s take back control: Mazars’ Suresh Patel suggests three steps that auditors and council finance teams should take to help get financial reporting and local audit back on track. Following my recent appearance… dlvr.it/SW0PfV pic.twitter.com/miL7pjukce

    Room151 1 week ago

    The case for residential investment: income, impact and resilience: Partner Content: Emma Gullifer from Columbia Threadneedle discusses the options for pension funds looking to invest in residential property including the Build-to-Rent market.… dlvr.it/SVzKwN pic.twitter.com/hdgZ4zKt4H

  • Register to become a Room151 user

  • Previous story Local government leaders call for IFRS9 statutory override
  • Next story News Roundup: MP presses councils on reserves, Carillion contract woes, Land sale rules

© Copyright 2022 Room 151. Typegrid Theme by WPBandit.

0 shares