Local government financing: Secretary of State assures Committee Chair
18 April 2016
Following correspondence from Clive Betts MP, Chair of the Communities and Local Government Committee, Greg Clark MP, Secretary of State for Communities and Local Government, has confirmed that the recent Budget announcements will not impact on the four-year financial settlements for local authorities previously offered by the Secretary of State.
- Letter from Greg Clark to Clive Betts regarding Budget 2016 and financial settlement, dated 11 April 2016
- Letter from Greg Clark to Clive Betts regarding local government financial settlement 2016/17, dated 11 April 2016
- Letter from Committee Chair to Secretary of State regarding Budget 2016 and four-year settlements, dated 23 March 2016
- Inquiry: Business rates
- Communities and Local Government Committee
The Committee Chair had asked Greg Clark to confirm that the four-year financial settlements offered to local authorities will not be affected by the need to make savings to fund the Budget.
Chair's comment
Clive Betts MP, Chair of the Communities and Local Government Committee, said:
"Following the move to 100% retention of business rates by 2020 and the multi-billion efficiency savings announced by the Chancellor in his Budget, I'm pleased the Secretary of State has confirmed that the four-year settlements for local councils are still valid.
While local authorities will remain under considerable financial pressure, I welcomed the original announcement on four-year settlements and I'm pleased the Secretary of State has now reaffirmed this deal."
Business rates inquiry
The Committee is currently holding a business rates inquiry into the Government's proposals to allow local authorities to retain 100 per cent of the full stock of business rates by 2020 and to cut business rates, and for directly elected mayors to add a premium to business rates to pay for new infrastructure.
Further information
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