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LG Settlement 2014/15

LG Settlement 2014/15 . Presentation for the SDCT . Main points . July consultation details largely confirmed £130m of holdbacks back into RSG Business rates concessions to be paid for with s.31 grant Spending power reduction capped at 6.9% each year No announcement on CT excessiveness

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LG Settlement 2014/15

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  1. LG Settlement 2014/15 Presentation for the SDCT

  2. Main points • July consultation details largely confirmed • £130m of holdbacks back into RSG • Business rates concessions to be paid for with s.31 grant • Spending power reduction capped at 6.9% each year • No announcement on CT excessiveness • No DWP grants • Another late settlement – responses by the 15th (next Wednesday)

  3. Political slant • Continuing to see 'fairness' as a matter of equal shares rather than needs based • Additional money for sparse areas • Rolling CT Freeze into the baseline to make it easier for Councils to make that choice • A return to ringfencing - using NHS/Social Care funding as part of spending power

  4. Choose your measure…. Change over two years 2014/15 and 2015/16; Spending Power -4.5% Government funding -8.5% Government funding (excluding NHS funding) -15.9%

  5. Revenue Spending Power decreases over the two years

  6. Revenue Spending Power less CT less NHS funding

  7. Two versions of fairness Incidence of spending power and cuts by relative levels of deprivation (IMD)

  8. Change in Spending Power 2014/15 – all authorities

  9. Change in Spending Power 2014/15 – Shire Districts

  10. Council tax • 1% freeze grant on offer for 14-15 and 15-16 • Referendum limits – by law does not have to be announced until settlement is confirmed by Parliament • Brandon Lewis reply to Commons question; “Any authority that is looking to put up its council tax and to penalise local residents by charging them more should have the courage to hold a referendum and let the public decide” • Will levying bodies be included? – but the Local Audit and Accountability Bill needs to be law

  11. Conclusions • A predictable settlement • Some more good news re: holdbacks • Government announcement of overall Spending Power figures hides a great deal of variation • Social care ‘protected’ by a ringfenced arrangement • Cuts on other services will be much greater than headline announcement suggests • An interesting story unfolding around Council Tax limitation

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