Agenda item

Nicola Morton (Head of Local Government Finance) and Mark Lloyd, Chief Executive of the LGA reported on the Spending Review, Autumn Statement 2015 and the 2016/2017 Provisional Local Government Finance Settlement.

Board members raised the following points in the discussion which followed:

·         There could be an implication on housing and planning whilst the need to provide the living wage to employees would also affect finances.

·         The government’s right to vary the four year settlement and the new burden of creating efficiency plans to secure longer term settlements under these circumstances were discussed. At the same time, there was a discussion on the potential financial loss that would result from not producing an efficiency plan.

·         The potential increase in council tax was discussed and how that would be spent. Board members were assured that the LGA would be engaging with councils on how they are planning to maintain service levels until the better care fund can be utilised in in four years’ time. The LGA would ask if it was possible to bring this fund in earlier.

·         The LGA’s response to the financial settlement was discussed, with several members expressing the difficulty of the reality for many councils. Members highlighted the challenging timescale for councils to set a budget, with the settlement announced the week before Christmas and emphasised the importance to continue lobby for more sustainable funding.

·         There was a discussion on the new homes bonus and it was emphasised that there needed to be a robust analysis of how the better care fund had been used.

·         Board members recommended that the LGA undertake work on distribution under 100% Business Rate Retention.

Decisions:

The People and Places Board:

1. Noted the report;
2. Asked that their comments inform the LGA’s finance policy work; and
3. Recommended that work on distribution under 100% Business Rate Retention be undertaken.

Action

It was agreed that:

Work would be undertaken following the board’s recommendation on Business Rate Retention.

LGA officers would continue to brief MPs and Peers as the Finance Settlement was debated in January and February 2016.

The board then moved into the confidential session.