Local Authorities: Financial Difficulties Debate
Full Debate: Read Full DebateDepartment: Department for Levelling Up, Housing & Communities
Lord Young of Cookham
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Local Authorities: Financial Difficulties
Lord Young of Cookham Excerpts(3 months, 2 weeks ago)
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Baroness Scott of Bybrook (Con)
My Lords, for many years we have had a cap on council tax increases. It remains at 2.99% for the general fund, with 2% extra for councils that want more money for social care funding. However, the department is establishing an expert panel to advise local government and the department on local government financial sustainability into the future. The panel will include the LGA and the Office for Local Government, and we look forward to its findings.
Lord Young of Cookham (Con)
My Lords, the local authorities that have so far gone bankrupt and applied for Section 114 have, by and large, been the authors of their own misfortune. Is my noble friend the Minister aware that many well-run upper-tier authorities—controlled by all parties—are now running out of road? Will not whoever wins the next election have to undertake a major review of local government finance? The current regime of overreliance on government grants, rate capping and an out-of-date council tax is simply unsustainable.