{"id":87458,"date":"2017-12-19T13:50:20","date_gmt":"2017-12-19T13:50:20","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=29080ad5e12b19f3bf0c519a4ff0d9b6"},"modified":"2017-12-19T13:50:20","modified_gmt":"2017-12-19T13:50:20","slug":"statement-to-parliament-provisional-local-government-finance-settlement-2018-to-2019-statement","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=87458","title":{"rendered":"Statement to Parliament: Provisional local government finance settlement 2018 to 2019: statement"},"content":{"rendered":"<div class=\"govspeak\">\n<p>With permission, Mr Speaker, I would like to make a statement on funding for local authorities in England next year.<\/p>\n<p>From 2015 to 2020, councils in England have access to over \u00a3200 billion to deliver high-quality services their local communities need.<\/p>\n<p>They deserve no less.<\/p>\n<p>Local government is at the front line of this country\u2019s democracy, with councillors and officers working at the heart of the communities that they serve.<\/p>\n<p>But to make the most of that local knowledge, councils need greater control of the money that they raise.<\/p>\n<p>They need greater freedom to tackle challenges in their areas.<\/p>\n<p>And they need the certainty and stability that will allow them to plan ahead.<\/p>\n<p>This government is committed to delivering that\u2026<\/p>\n<p>\u2026 and today I am publishing a <a href=\"https:\/\/www.gov.uk\/government\/collections\/provisional-local-government-finance-settlement-england-2018-to-2019\">draft local government finance settlement<\/a> that marks an important milestone in the journey to doing so.<\/p>\n<p>It comes in the third year of a 4-year deal that was accepted by 97% of councils in return for publishing efficiency plans.<\/p>\n<p>We will continue to work with the sector to help them increase transparency and share best practice\u2026<\/p>\n<p>\u2026supporting greater progress in delivering increased efficiency over the coming year.<\/p>\n<p>I expect this to have a tangible impact on the steps council take to promote efficiency from 2019 to 2020.<\/p>\n<p>Local government operates in a society that is constantly changing.<\/p>\n<p>And the system of financing local government needs to reflect that.<\/p>\n<p>The current formula of budget allocations has served councils and communities well over the years.<\/p>\n<p>But to meet the challenges of the future we need an updated and more responsive distribution methodology.<\/p>\n<p>One that gives councils the confidence to face the challenges and opportunities of the future.<\/p>\n<p>So I am today publishing a <a href=\"https:\/\/www.gov.uk\/government\/consultations\/fair-funding-review-a-review-of-relative-needs-and-resources\">formal consultation<\/a> on a review of relative needs and resources.<\/p>\n<p>I aim to implement a new system based on its findings in 2020 to 2021.<\/p>\n<p>Alongside the new methodology, in 2020 to 2021 we will also be implementing the latest phase of our business rates retention programme\u2026<\/p>\n<p>\u2026a scheme that gives local authorities the levers and incentives they need to grow their local economies.<\/p>\n<p>The aim is for local authorities to retain 75% of business rates from 2020 to 2021.<\/p>\n<p>This will be through incorporating existing grants into business rate retention including the Revenue Support Grant, and the Public Health Grant.<\/p>\n<p>Local authorities will be able to keep that same share of growth on their baseline levels from 2020 to 2021, when the system is reset.<\/p>\n<p>So from 2020 to 2021 business rates will be redistributed according to the outcome of the new needs assessment\u2026<\/p>\n<p>\u2026 subject to suitable transitional measures.<\/p>\n<p>A number of 100% retention pilots have already been announced and those will continue.<\/p>\n<p>A further pilot will begin in in London in 2018 to 2019 and we had intended that a further 5 pilots would begin that same year.<\/p>\n<p>However, interest in the scheme was such that we will now be taking forward twice as many as planned.<\/p>\n<p>I\u2019m pleased to announce today that the new pilots will take place in:<\/p>\n<ul>\n<li>Berkshire<\/li>\n<li>Derbyshire<\/li>\n<li>Devon<\/li>\n<li>Gloucestershire<\/li>\n<li>Kent &amp; Medway<\/li>\n<li>Leeds<\/li>\n<li>Lincolnshire<\/li>\n<li>Solent<\/li>\n<li>Suffolk<\/li>\n<li>and Surrey.<\/li>\n<\/ul>\n<p>The first batch of pilots are taking place largely in urban authorities; the second wave will mainly cover counties.<\/p>\n<p>This ensures that councils right across the country will benefit\u2026<\/p>\n<p>\u2026that the scheme can be tested in a wide range of environments,<\/p>\n<p>\u2026and that the benefits of growth are broadly comparable between London, existing pilots and new pilots<\/p>\n<p>We received so many applications to take part that we will continue to pilot the business rates retention programme in 2019 to 2020.<\/p>\n<p>Full details will be published in due course.<\/p>\n<p>Mr Speaker, over the past year my ministers and officials have been listening to councils of all shapes and sizes\u2026<\/p>\n<p>\u2026understanding their concerns and working together to develop ways of tackling them.<\/p>\n<p>The result of those conversations is reflected in this draft settlement.<\/p>\n<p>So for example, rural councils have expressed concern about the fairness of the current system\u2026<\/p>\n<p>\u2026with the Rural Services Delivery Grant due to be reduced next year.<\/p>\n<p>So today I can confirm that I will increase the Rural Services Delivery Grant by \u00a315 million in 2018 to 2019\u2026<\/p>\n<p>\u2026 meaning the total figure will remain at \u00a365 million for the remainder of the current 4-year settlement.<\/p>\n<p>We\u2019ve also heard concerns about proposed changes to the New Homes Bonus.<\/p>\n<p>To date we have made almost \u00a37 billion in New Homes Bonus payments to reward the building of 1.4 million homes.<\/p>\n<p>Over \u00a3946 million in New Homes Bonus payments will be allocated in 2018 to 2019, rewarding local authorities for their work in fixing our broken housing market.<\/p>\n<p>I consulted on proposals to link New Homes Bonus payments to the number of successful planning appeals and considered raising the <abbr title=\"New Homes Bonus\">NHB<\/abbr> baseline.<\/p>\n<p>Following conversations that I\u2019ve had with the sector, I have been persuaded of the importance of continuity and certainty in this area.<\/p>\n<p>So today I can confirm that in the year ahead no new changes will be made to the way New Homes Bonus works\u2026<\/p>\n<p>\u2026and that the New Homes Bonus baseline will be maintained at 0.4%.<\/p>\n<p>As I set out in the <a href=\"https:\/\/www.gov.uk\/government\/collections\/housing-white-paper\">housing white paper<\/a>, local authorities will be able to increase planning fees by 20% where they commit to investing the additional income in their planning services.<\/p>\n<p>This is a significant step towards addressing the widespread concerns of under-resourcing in local planning authorities.<\/p>\n<p>Following discussions with the sector I am also announcing a continuation of capital receipts flexibility programme for a further 3 years.<\/p>\n<p>This scheme gives local authorities the continued freedom to use capital receipts from the sale of their own assets.<\/p>\n<p>This will help fund the costs of transformation and release savings.<\/p>\n<p>One particular issue that\u2019s caused concern for some councils is the so-called \u201cNegative <abbr title=\"revenue support grant\">RSG<\/abbr>\u201d.<\/p>\n<p>This is where changes in revenue support grant have led to a downward adjustment of some local authorities\u2019 business rates top-up or tariff for 2019 to 2020.<\/p>\n<p>I do recognise the strength of feeling in local government around this issue.<\/p>\n<p>So I can confirm that my department will be looking at fair and affordable options for dealing with Negative <abbr title=\"revenue support grant\">RSG<\/abbr>\u2026<\/p>\n<p>\u2026and we will formally consult on proposals in the spring so that the findings are in ahead of next year\u2019s settlement.<\/p>\n<p>And of course, anyone who has spoken to anyone in local government will be aware of concerns about funding for adult and children\u2019s social care.<\/p>\n<p>That\u2019s why, over the past 12 months, we\u2019ve put billions of pounds of extra funding into the sector\u2026<\/p>\n<p>\u2026 and why the Department for Education are spending more than \u00a3200 million on innovation and improvement in children\u2019s social care.<\/p>\n<p>At <a href=\"https:\/\/www.gov.uk\/government\/topical-events\/spring-budget-2017\">Spring Budget<\/a>, an additional \u00a32 billion was announced for adult social care over the next 3 years.<\/p>\n<p>With the freedom to raise more money more quickly through the use of the social care precept that I announced this time last year\u2026<\/p>\n<p>\u2026we have given councils have access to \u00a39.25 billion more dedicated funding for adult social care over 3 years.<\/p>\n<p>But we also need to find a long-term solution to challenges that are not going to go away.<\/p>\n<p>That\u2019s why we have already announced that a green paper on future challenges within adult social care will be published in the summer of 2018.<\/p>\n<p>Finally, I am conscious of calls for further flexibility in the setting of Council Tax.<\/p>\n<p>While we all want to ease growing pressure on local government services, I\u2019m sure none of us want to see hardworking taxpayers saddled with ever-higher bills.<\/p>\n<p>This settlement strikes a balance between those two aims\u2026<\/p>\n<p>\u2026giving councils the ability to increase their core Council Tax requirement by an additional 1% without a local referendum \u2013 bringing the core principle in line with inflation.<\/p>\n<p>We have abolished Whitehall capping.<\/p>\n<p>Under the Localism Act, local government can increase Council Tax as they wish \u2013 but excessive rises need to be approved by local residents in a referendum.<\/p>\n<p>This provides an important check and balance against the excessive increases [political content removed].<\/p>\n<p>This change\u2026<\/p>\n<p>\u2026combined with the additional flexibility on the adult social care precept that I confirmed last year\u2026<\/p>\n<p>\u2026gives local authorities the independence they need to help relieve pressure on local services such as adults and children\u2019s services, while also recognising that many households face their own pressures.<\/p>\n<p>In addition, directly elected mayors will decide the required level of precept by agreement with their combined authorities.<\/p>\n<p>I\u2019m sure voters will be watching closely to ensure this freedom is not abused \u2013 as I will.<\/p>\n<p>I can also confirm that the government intends to defer the setting of referendum principles for town and parish councils for 3 years.<\/p>\n<p>This is subject to the sector taking all available steps to mitigate the need for Council Tax increases\u2026<\/p>\n<p>\u2026and the government seeing clear evidence of restraint in the increases set by the sector as a whole.<\/p>\n<p>I have also agreed measures with the Home Secretary to make it easier for Police and Crime Commissioners to meet local demand pressures\u2026<\/p>\n<p>\u2026by allowing a \u00a312 Council Tax flexibility for police services \u2013 raising an additional \u00a3139 million next year.<\/p>\n<p>Mr Speaker, this settlement recognises the need to keep spending under control while also tackling many of the issues that have been raised by local government over the past year.<\/p>\n<p>With 2 years of real terms increases in resources available to local government\u2026<\/p>\n<p>\u2026it will give local authorities the funding and freedom they need to make decisions in the best interests of the communities they serve.<\/p>\n<p>It\u2019s a settlement that offers councils the resources they need\u2026<\/p>\n<p>\u2026the stability they\u2019ve requested\u2026<\/p>\n<p>\u2026and the fairness they deserve\u2026<\/p>\n<p>\u2026and I commend it to the House.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Secretary of State for Communities and Local Government gives his statement on the local government finance settlement.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87458"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=87458"}],"version-history":[{"count":2,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87458\/revisions"}],"predecessor-version":[{"id":87471,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87458\/revisions\/87471"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=87458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=87458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=87458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}