Latest Public Sector News

19.04.16

Four-year settlements will be unaffected by spring Budget savings, Clark confirms

The government’s four-year financial settlements to local councils will not be affected by the need to make savings in the most recent Budget, Greg Clark has confirmed in response to a letter from Clive Betts MP, chair of the Communities and Local Government (CLG) Committee.

The fate of the settlements, which were offered last year to any councils “that wished to plan ahead with confidence”, was thrown into uncertainty by the funding cuts in the most recent Budget, including a reduction in business rates.

After previous correspondence in which Clark, the communities secretary, confirmed that councils will receive compensation for the business rates’ cuts, Betts wrote to him on 23 March asking for an assurance that the settlements “still hold good” despite the Budget.

Clark, who replied on 11 April, said: “I can confirm that I expect the four-year allocations confirmed in the final settlement on 10 February 2016 to be the amounts presented to Parliament each year, should councils choose to accept the offer.

“It is open to any council to continue to work on a year-by-year basis, but I cannot guarantee future levels of funding for those that prefer not to have a four year settlement.”

He added that settlements beyond 2019-20 will be affected by 100% business rates devolution, into which the CLG Committee is currently carrying out an inquiry.

However, the LGA have warned that the four-year settlements could lead to a ‘U-shaped funding curve’.

(Image c. Dominic Lipinski from PA Wire)

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

Some libraries are better than others

Some libraries are better than others

Helen Milner, chief executive of Good Things Foundation, formerly the Tinder Foundation, expands on the organisation’s recent claims that protecting libraries at all costs could be holdin more > more last word articles >

public sector focus

View all News

comment

Shaping the future of local government through districts

23/02/2017Shaping the future of local government through districts

Mark Pawsey (pictured), the MP for Rugby and the chair of the All Party Par... more >
Bristol: the booming smart city

23/02/2017Bristol: the booming smart city

Barney Smith, CEO at Bristol Is Open, explains how the innovative project c... more >

interviews

McMahon: I worry that the public are not part of the devolution conversation

20/12/2016McMahon: I worry that the public are not part of the devolution conversation

Jim McMahon, Labour’s shadow minister for local government and devolu... more >

the raven's daily blog

And justice for all

23/02/2017And justice for all

Nothing less than a ‘whole-place’ pooling of public service budgets and devolution of criminal justice system powers to local level can create the conditions for c... more >
read more blog posts from 'the raven' >

editor's comment

21/02/2017Untapped potential

As PSE went to press, the government had just released its Industrial Strategy green paper, which has an ambitious aim to “improve living standards and economic growth by increasing productivity and driving growth across the whole country”.  Overall, the strategy was welcomed across the public sector. However, as you’ll read throughout this edition of the magazine, in order to make the aspirations a reality, there needs to be a greater level of freedom for all... read more >