Agenda item

The Chairman welcomed Rishi Sunak MP, Parliamentary Under Secretary of State (Minister for Local Government), to the meeting.

The Minister thanked members and the Chairman for inviting him to what was his first public speech since being appointment to his new role. The Minister also offered his thanks to councillors who give their time to build communities in which people are proud to live. He discussed his ambition to ensure that the voice of local government was heard across Whitehall and he acknowledged how difficult the last few years had been for local government. The Minister touched on the latest finance settlement and noted the £2 billion funding made available for adult social care, the introduction of the social care precept and the rural service delivery grant.  He also emphasised the need to harness councillors’ local knowledge in making sure the new funding formula was fair and he said he was keen to work with local government to work towards a higher level of business rates retention.

The Minister invited comments from members. In the discussion which followed, members made the following points:

·         With another round of business rate pilots due, the Minister was asked whether feedback would be available to councils that were not chosen for the earlier round. The Minister said he would look into that and follow it up with colleagues.

·         On fair funding, the Minister was asked whether there was any flexibility in using adult social care precepts for children’s social care, and an objection to negative revenue support grants (RSGs) was raised. The Minister responded to say that on negative RSG, he recognised the pressure local authorities were under and that the Ministry was looking at fair, affordable options. He also said he would be looking into the question of flexibility on adult social care precepts and children’s social care with the Department for Education.

·         A point was raised about councils remaining the most cost effective way of providing local services, despite having seen funding reduced dramatically. Members wanted to see a move from 75 per cent to 100 per cent of business rates being retained by councils. The Minister said he shared the aspiration to move in that direction and that the pilots were an attempt to do that. He emphasised his view that local government ought to be self-sufficient.

·         The Minister was asked what his view was on the changes taking place in relation to local government pensions. The Minister said that this process was ongoing and that he would engage with those going through the process to best determine how money could be saved through fees. He was keen to see pension funds invested in infrastructure projects which would ultimately benefit pension holders.

·         Councils want to build more council houses but are unable to do so because of the cap. The budget suggests this may be lifted in a few years. Members asked the Minister if this could be brought forward. The Minister said he would be speaking to his colleague, Dominic Raab MP, the new Minister for Housing, and he noted that the £1 billion increase to the Housing Revenue Account was about to come into force. The Minister said he appreciated the sentiment of wanting the Government to deliver more homes and that he wanted to do more to support councils in that ambition.

The Chairman thanked the Minister and the discussion was drawn to a close.