Agenda item

Sarah Pickup (Deputy Chief Executive) introduced the report. Members noted that the Queen’s Speech for 2017-19 had taken place the previous day, and the LGA had circulated an on-the-day briefing on issues which would impact upon local government.

She highlighted that the Conservative party’s manifesto had made no reference to the Local Government Finance Bill, and it was unclear what this would mean for business arte retention. There had been references to increasing fairness, and giving local authorities more powers to raise money locally, and it was anticipated that some measures to increase retention could be put in place without legislation. The most beneficial way to implement fair funding would be for the government to allow further business rates retention to meet the funding gap. It was unclear if RSG would disappear if further retention was implemented, and the Business Rates Task and Finish Group would explore the argument that RSG, or a component of it, should be kept even in the event of further retention.

The LGA was currently assessing how to best influence the new legislative agenda, and would press the government to ensure that any new responsibilities would come with appropriate levels of funding so that services could be run properly. The funding gap, particularly in adult social care, should be addressed. There was developing cross-party consensus that action should be taken on adult social care. Other issues for the Board included the financial implications of the Grenfell Tower inquiry, the gap in funding for Children’s Services, EU funding, the Data Protection Bill, and mental health funding. The LGA had also identified areas which were not included in the speech, including the lifting of the housing borrowing cap.

Members discussed in detail the suggestion that the LGA should consider the possibility of an independent commission on adult social care funding to explore a sustainable cross-party solution from a local government perspective. It was highlighted that other reviews of social care had taken place in the past, but a review led by an independent Chair which could present a solution to the government would be more favourable to further requests for funding. It was also suggested that the commission could look at wider issues around local government funding after work on adult social care had been completed. The LGA usually pressed the government on what should be funded but not how this should happen, so this would have to be considered carefully, and the views of the LGA’s Community Wellbeing Board and Leadership Board would also need to be sought. Members agreed that this should be explored at the earliest opportunity.

In the discussion which followed Members raised the following points:

·         The lack of clarity on business rates retention placed greater significance on the business rate retention pilot areas. These would provide vital evidence for pressing the government to allow further retention for all local authorities. The fair funding review was still going ahead, and could do so without legislation, would require consultation and funding.  Incentives to housing growth would remain important, and this could be a good argument for further business rates retention.

·         Members raised concern that additional spending for Northern Ireland through the government’s confidence and supply arrangement with the DUP could negatively impact on funding for councils in England and Wales. The detail of this was still unknown, but the issue would be kept under review.

·         There could potentially be more opportunities for the LGA to influence the government as the Queen’s Speech suggested that there would be less legislation and more use of executive orders and statutory instruments. The LGA’s continued work with Select Committees and APPGs would be valuable to influencing the political agenda.

Decisions

The Resources Board:

i.      Considered the assessment of pledges in the Conservative party’s manifesto, and the initial assessment of Bills outlined in the 2017-19 Queen’s Speech; and

ii.     Agreed that the a possible independent commission into adult social care funding be explored, in conjunction with the LGA’s Leadership Board and Community Wellbeing Board.