Agenda item

Mike Heiser, Senior Adviser, introduced Appendix A of item two and updated members on the following headlines found in the report:

-       The Local Government Finance Settlement 2019/20;

-       the Fair Funding Review (FFR);

-       an update on the LGA’s work on Business Rates Retention;

-       the Spring Statement and 2019 Spending Review (SR);

-       the Treasury’s Select Committee inquiry into the impact of Business Rates on business;

-       Business rates treatment of self-catering accommodation;

-       The Public Accounts Committee report on Local Government Spending;

-       The Valuation Office Agency Gateway to enable sharing of date with local authorities;

-       Audit Fees consultation; and

-       The review of enforcement agent reforms: call for evidence. 

Following this update, Sarah Pickup, Deputy Chief Executive, provided members with a update on the LGA’s work regarding the SR. This included details regarding the two round-tables held jointly withthe Ministry of Housing, Communities and Local Government (MHCLG) on special education needs in schools, also attended by DFE and homelessness , also attended by the Department for Work and Pensions (DWP). 

Following this update, members discussed the following:

The analysis of schools expenditure and how this fed into the LGA’s work into the Spending Review.  Members also brought up the role of early intervention and the differences amongst local authorities.  The Chair also mentioned work carried out by Newton Europe, commissioned by the LGA when he was Chair of the Children and Young Peoples Board, which looked into the reasons for variation in expenditure on children’s services that were not in control of councils.  Sarah Pickup stated this work would be picked up in the SR work currently being carried out by the LGA and stated that the Board would receive a future update on this.

Members also discussed the FFR and the adult social care (ASC) and children’s social care formulas.  The discussion turned to key variable factors such as deprivation, and issues that are based on the number of people that are looked after.  Sarah updated members that the Further Business Rates Retention and FFR Task and Finish Group will be looking at the ASC formula.  The Chair requested an update on the group’s work at the next Board meeting. 

Members went on to discuss the areas that were chosen to pilot 75 per cent Business Rates retention in 2019/20  It was agreed to discuss further developments at a future Board meeting update. 

Actions

-       Members noted the update.

-       Future SR item at the next Board meeting.

-       Future update on the Further Business Rates Retention and FFR Task and Finish Group’s work.