Provisional local government settlement pushed back by Brexit vote
0The government’s plans to announce the 2019/20 provisional local government finance settlement this week have come a cropper thanks to Parliament’s debate on the government’s proposed Brexit deal.
Earlier this year, ministers accepted the recommendation of a review into the business rates system carried out by HM Treasury director general Andrew Hudson, which called for earlier publication of the proposed deal.
However, MPs are currently engaged in debating the prime minister’s draft Brexit agreement until 11 December, when the “meaningful vote” on the proposals is set to take place.
In a written statement to Parliament, communities secretary James Brokenshire said: “I recognise that my parliamentary colleagues will wish to engage thoroughly in these debates and will also wish to consider the proposed Local Government Finance Settlement for 2019-20.
“I have therefore decided to announce the provisional local government finance settlement after this protected period, by way of an oral statement.”
Brokenshire promised that the period for making representations on the provisional settlement would not be truncated as a result of the delay.
However, Duncan Whitfield, strategic director of finance and governance at London Borough of Southwark called the delay “very disappointing and a little worrying”.
He said: “The sector has been craving certainty around the settlement date for some time to aid planning.
“Once again the sensible plan as set out by the Ministry of Housing, Communities and Local Government has been thwarted.”
Richard Harbord, former chief executive of Boston Borough Council, said: “Whilst understandable it is most regrettable that the announcement will come only seven working days before Christmas.
“Local government has been promised more certainty and earlier settlement to allow proper planning in review after review.”
Lord Porter, chairman of the Local Government Association, said: “It is a shame that the Brexit debate has become a distraction from the pressures facing local government.
“We hope the government uses this delay to ensure the Settlement provides the resources needed for our local services.”
Since 2012, the provisional settlement has been announced between 15 and 19 December, compared to late November or very early December in the 2000s.
The final settlement has not been announced until the first week of February rather than the last week of January.
Hudson’s review, published in October said: “This all allows less time for scrutiny, and less time for local authorities to set budgets. In some cases, councils have even had to set their final budgets for the year based on the provisional settlement.
“Generally local authorities are frustrated both by the late announcement of the figures, and also by the fact that they often get no notice of when that announcement is coming.”
Earlier publication of the provisional settlement, the review said, would aid central government and help local government better plan their budgets.
Following publication of the report, the minister for local government Rishi Sunak wrote to Clive Betts, chair of the housing, communities and local government select committee, confirming the department would accept all of Andrew Hudson’s recommendations.
He said the department would aim to publish the provisional settlement for 2019/2020 on 6 December.
“We recognise taking a more planned approach towards the provisional local government finance settlement in future will be fundamental to ensuring local authorities are given more certainty, and the time and space to consider their financial positions for the coming year,” he said.
