Housing, Communities and Local Government Committee report on council finances: CCN responds

Today the Housing, Communities and Local Government Committee has released a new report, The Funding and Sustainability of Local Government Finance today.

This follows the committee's inquiry, which took place earlier this year. The County Councils Network gave evidence to this inquiry in March alongside some of its member authorities.

Below, the network responds to the report's release.

Cllr Tim Oliver, Chairman of the County Councils Network, said:

“The committee is correct in concluding that the current financial pressures on local government are driven by high cost, demand-led services that they are legally obliged to deliver. County and unitary councils are at the sharp end of this, which is why the Fair Funding Review 2.0 must be proportionate.

“As it stands, the government is proposing a full council tax equalisation as part of these reforms. This could mean hundreds of millions redistributed from county areas to other parts of the country which would further break the link between council tax and the services residents receive. It is being proposed despite county and unitary councils facing severe pressures in delivering adult social care, children’s services, home to school transport and many other services where demand is high.

“We support the committee’s call for more creative solutions and for government to consider equipping local areas with fiscal devolution powers. Our report last week showed the art of the possible: better use of a small proportion of national taxation could give councils across England a £9bn yearly investment pot for growth-related projects and infrastructure.”