Local Government Finance

Department for Levelling Up, Housing and Communities written question – answered on 4th November 2021.

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Photo of Steve Reed Steve Reed Shadow Secretary of State for Communities and Local Government

To ask the Secretary of State for Levelling Up, Housing and Communities, whether it remains his Department's policy to reduce the number of funding schemes in which local authorities make competitive bids.

Photo of Kemi Badenoch Kemi Badenoch Minister for Equalities, Minister of State (Housing, Communities and Local Government), Minister of State (Foreign, Commonwealth and Development Office), Minister of State (Foreign, Commonwealth and Development Office) (jointly with Department for Levelling Up, Housing and Communities)

The Government believes that providing local authorities with the freedom to use funding in a way that responds to local needs and priorities is key to supporting financial sustainability and sound financial management. The Local Government Finance Settlement and the vast majority of local government’s Core Spending Power (£51.3 billion) is un-ringfenced, giving local authorities flexibility over their spending decisions

There are times when dedicated competitive biddable funding streams are the best way to make sure local government receives the support, they need to deliver the Government’s objectives, including specific funding initiatives, trials or pilots. In such circumstances, Ministers will look to maximise value for money by considering the timing, value and conditions attached to any funding.

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