Issue - meetings

Nicola Morton, Head of Programmes, introduced the report, updating members on the Government’s Fair Funding Review and business rates retention reforms, and LGA work on this. It was hoped that DGLC would publish an update on the fair funding review shortly. In summer 2019, it was expected that the full consultation document would be published, potentially showing plans for individual local authorities. Business rate implementation was now expected in 2020/2021.Members were further advised that the joint LGA and DCLG steering group would be reconvened that month. She requested members’ views on the criteria on which to assess a future model of funding.

In the discussion which followed, members made the following points:

·         Although the LGA was taking a neutral position on the formula, members requested that some consensus was built on elements, in order to strengthen local authorities’ negotiating position with Government.

·         There was a discussion on the merits of allowing councils to choose the formula which worked best for them. The ability of individual councils to raise revenue locally needed to be taken into account, and issues such as homelessness and high student numbers recognised.

·         The transition between one formula to another would need to be considered carefully.

·         There were concerns raised on councils that would be left without revenue support from next year.

·         There was a discussion on whether the deal agreed until 2020 would still apply when the change to business rates retention came into effect.

In response, officers made the following points:

·         Some consensus would try to be reached.

·         Issues such as homelessness and high student numbers in specific area would be considered.

·         There was an opportunity for more areas to participate as pilots. Government was particularly interested in two tier areas as examples, which would demonstrate different learning to the current pilots.

Decision:

1.    Members noted the consultation document and the LGA’s draft response.

Action:

1.    Officers to proceed with work in line with members’ steer.