Agenda item

Nicola Morton (Head of Local Government Finance) introduced the report, which highlighted the announcements in the 2017 Spring Budget with implications for local government, as well as the LGA’s work on other local government finance policy matters.

The Chancellor had announced an additional £2 billion to councils in England for Adult Social Care (ASC) between 2017/18 and 2019/20, and half of this would be for 2017/18. As a result all ASC authorities would receive additional funding. A Green Paper on ASC was expected later in the year, and the LGA’s funding analysis would be updated to reflect the changes.

Regarding business rates, the government had announced the setting of a fixed time limit for appeals, for which the LGA had lobbied for some time. The Local Government Finance Bill had been introduced in January 2017, which abolished central share and  levy and settlements through parliament. The government could provide for losses through appeal. There would also be powers for combined authority mayors to raise more infrastructure money. The LGA had done a lot of work to brief MPs, and had given evidence to the Bill Committee. It was expected that the Bill wuld move to the Lords later in the year, and become law by the end of 2017.

The government had published a consultation paper on further business rates retention, where local authorities would be able to retain some growth. This would impact on local growth zones and the provision for appeals. The deadline for responses to the consultation was 3 May, and the Task and Finish Group on Business Rates would be meeting following the Board to discuss the matter.

In the discussion which followed Members raised the following points:

·         The additional money for ASC was welcomed, and it was hoped that local government would have full discretion on how this should be spent. The LGA had pushed for councils to have flexibility, but it should be spent on ASC needs, sustainability of the market, and discharges from hospital. It was hoped that the LGA would be engaged at an early stage on the ASC Green Paper.

·         It was hoped that areas engaging with business rates pilots would share the details of how 100% business rate retention was working. It was confirmed that Greater Manchester was not losing Public Health funding as a result of their pilot, and no pilot areas were currently better or worse off. The Public Health ring fence would continue as before.

·         It was noted that revaluation could be done every year, but the LGA was engaging on the possibility of more frequent resets. There would be further analysis on this, and it may be difficult for the LGA to take a view.

Decision

The Resources Board noted the report.