Andrew Gwynne – 2016 Parliamentary Question to the Department for Communities and Local Government

The below Parliamentary question was asked by Andrew Gwynne on 2016-02-10.

To ask the Secretary of State for Communities and Local Government, what assessment he has made of the long-term financial sustainability of councils with low council tax bases.

Mr Marcus Jones

In reaching the funding decisions announced at the recent Spending Review, the Government had regard to a wide range of issues that might impact on local government over the spending period. The analysis took into account a range of financial and economic factors as well as changes in demand.

When allocating funding through the local government finance settlement, the Government has taken into account the resources available to local authorities including the ability of authorities to raise funding locally through Council Tax.

The Government has made it clear that redistribution of funding between local authorities will continue under the 100% business rates retention system, to be brought in by 2020. The redistribution system will take into account differing Council Tax bases. The Government will hold a Fair Funding Review to consider the appropriate funding needs of different types of areas.