Local Government Finance: Tyne and Wear

Department for Communities and Local Government written question – answered on 14th July 2017.

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Photo of Stephen Hepburn Stephen Hepburn Labour, Jarrow

To ask the Secretary of State for Communities and Local Government, what assessment he has made of the potential effect of changes in local authority funding on the capacity of (a) South Tyneside and (b) Gateshead local authority to deliver essential services.

Photo of Marcus Jones Marcus Jones Parliamentary Under-Secretary (Department for Communities and Local Government) (Local Government)

The financial settlements for South Tyneside and for Gateshead are broadly flat in cash terms between 2016-17 and 19-20. As democratically elected organisations, local authorities such as South Tyneside and Gateshead are independent of central government and are responsible for managing their budgets in line with local priorities. In 2016-17 we offered local authorities a 4-year settlement that guarantees their allocations for Revenue Support Grant, Rural Services Delivery Grant and Transition Grant, and that Business Rates top up and tariff payments will not change to reflect changes in relative needs. This offer was accepted by 97 per cent of councils including South Tyneside and Gateshead, enabling authorities to plan ahead with confidence, and meet the challenge of making savings, while continuing to provide excellent services to local communities.

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