Agenda item

The Chair briefly introduced the report which updated on the LGA’s activity on the 2015/16 Local Government Finance Settlement and summarised the headline issues from within the Settlement. 

In the discussion that followed, Members made a number of comments, including:

·        Members suggested the LGA’s response to the settlement consultation be contextualised within the wider long term debate on devolution and public service reform.  Particular reference was made to the ability of the sector to deliver better outcomes and provide value for money through expand its role in areas such as welfare.

·        With reference to the Government’s misleading presentation of the funding reduction to local government, Members emphasised the importance of being more robust in articulating the implications of the continuing funding reductions on vital frontline services.  They also highlighted the need to help Government understand the diversity of circumstance within the sector.

·        Whilst Members emphasised the need for clarity on future of the New Homes Bonus (NHB), they emphasised the need for a finance system that more effectively incentives growth.   

·        There was support for making a strong argument that Government set off all business rates appeal losses from before April 2013 against the old national business rates pool.  Following comments made by the Minister at the LGA’s recent Finance Conference, cautious optimism was expressed that the Minister was alive to the issue. 

·        With reference to the significant added value provided by local welfare assistance schemes, Members highlighted the need to continue to lobby Government to revise its decision to include funding for local welfare from within the existing core grant.  

·        There was support for continuing to push for clarity regarding Deprivation of Liberty and the need for Government to fund this new burden.

Decision

The Resources Board asked that their comments inform the LGA’s response to the 2015-16 Local Government Finance Settlement consultation which would be signed off by the Resources Board Lead Members.