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1064682

	registered interest
	date	21/02/2019
	answering body	Ministry of Housing, Communities and Local Government
	answering dept id	7
	answering dept short name	Housing, Communities and Local Government
	answering dept sort name	Housing, Communities and Local Government
	hansard heading	Local Government Finance
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the oral contribution of 5 February 2019 of the Under-Secretary of State for Housing, Communities and Local Government, Official Report column 289, how that 4 per cent figure relating to deprivation was calculated.
	tabling member constituency	Sheffield South East
	tabling member printed	Mr Clive Betts
	uin	224297
	answer	answer is ministerial correction date of answer 26/02/2019 answer text <p>The Government is undertaking a review of the relative needs and resources of local authorities in England, with a view to setting fresh baseline funding levels in 2020-21. We are working closely with local government representatives and others to consider the drivers of local authorities’ costs, the resources available locally to fund services, and how we should account for these in a way that draws a more transparent and understandable link between local circumstances and resource allocations.</p><p>In December 2018 the Government published a consultation paper, which set out a proposed approach to assessing the relative needs of local authorities. Our analysis has shown that for many universal services, the number of people in each local authority area is the most important predictor of the costs that councils face in delivering those services. The consultation therefore proposes the introduction of a simple population-based Foundation Formula to account for many of the universal services that local authorities deliver, alongside several specific funding formulas for some of the largest and most complex service areas.</p><p>To understand whether including additional ‘cost drivers’, including deprivation, significantly improves the precision of the Foundation Formula, a comparison was made between the amount of variation in past expenditure that was explained by different combinations of cost drivers, to the total amount of variation in expenditure. The basis on which this comparison was made is set out in pages 19 to 21 of the consultation paper (link below). Whilst, in aggregate terms, deprivation was not shown to be a major cost driver for the services included in the Foundation Formula, to ensure that deprivation is appropriately accounted for in the relative needs assessment, deprivation, or a suitable proxy for deprivation, is taken into account in four of the service-specific formulas that were proposed.</p><p><a href="https://www.gov.uk/government/consultations/review-of-local-authorities-relative-needs-and-resources" target="_blank">https://www.gov.uk/government/consultations/review-of-local-authorities-relative-needs-and-resources</a>.</p> answering member constituency Richmond (Yorks) answering member printed Rishi Sunak question first answered 26/02/2019 17:38:29 answering member 4483 label Biography information for Rishi Sunak
	tabling member	394 label Biography information for Mr Clive Betts

1064702

	registered interest
	date	21/02/2019
	answering body	Ministry of Housing, Communities and Local Government
	answering dept id	7
	answering dept short name	Housing, Communities and Local Government
	answering dept sort name	Housing, Communities and Local Government
	hansard heading	Local Government Finance
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Secretary of State for Housing, Communities and Local Government, whether he has made an assessment of the correlation between the (a) increased proportion of local authority spending on social care, (b) reduction in local authority overall spending on services other than social care and (c) decrease in local authority funding since 2010; and if he will make a statement.
	tabling member constituency	Houghton and Sunderland South
	tabling member printed	Bridget Phillipson
	uin	224325
	answer	answer is ministerial correction date of answer 26/02/2019 answer text <p>As democratically elected organisations, local authorities are independent of central government, and are responsible for managing their budgets in line with local priorities and their legal duties.</p><p>Central government funding cannot in isolation provide a true representation of local authority finances. The responsibilities, structure and makeup of local authorities have changed significantly since 2010 and spending power, formula grants and settlement funding assessments are not directly comparable over this period. For example, with the introduction of the Business Rates Retention Scheme, local authorities estimate they will keep around £2.4 billion in business rates growth in 2018-19.</p><p>As announced in the Local Government Finance Settlement, Core Spending Power is forecast to increase from £45.1 billion in 2018-19 to £46.4 billion in 2019-20. This is a cash-increase of 2.8 per cent and real-terms increase in resources available to local authorities. In the long term, the Spending Review will determine funding for local government from 2020-21 onwards and will enable us to look at local government spending in the round.</p> answering member constituency Richmond (Yorks) answering member printed Rishi Sunak grouped question UIN 224324 question first answered 26/02/2019 17:36:53 answering member 4483 label Biography information for Rishi Sunak
	tabling member	4046 label Biography information for Bridget Phillipson

1064701

	registered interest
	date	21/02/2019
	answering body	Ministry of Housing, Communities and Local Government
	answering dept id	7
	answering dept short name	Housing, Communities and Local Government
	answering dept sort name	Housing, Communities and Local Government
	hansard heading	Local Government Services
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Secretary of State for Housing, Communities and Local Government, whether his Department has made an assessment of the correlation between changes in (a) local authority funding and (b) changes in the level of provision of local authority services, excluding social care, since 2010.
	tabling member constituency	Houghton and Sunderland South
	tabling member printed	Bridget Phillipson
	uin	224324
	answer	answer is ministerial correction date of answer 26/02/2019 answer text <p>As democratically elected organisations, local authorities are independent of central government, and are responsible for managing their budgets in line with local priorities and their legal duties.</p><p>Central government funding cannot in isolation provide a true representation of local authority finances. The responsibilities, structure and makeup of local authorities have changed significantly since 2010 and spending power, formula grants and settlement funding assessments are not directly comparable over this period. For example, with the introduction of the Business Rates Retention Scheme, local authorities estimate they will keep around £2.4 billion in business rates growth in 2018-19.</p><p>As announced in the Local Government Finance Settlement, Core Spending Power is forecast to increase from £45.1 billion in 2018-19 to £46.4 billion in 2019-20. This is a cash-increase of 2.8 per cent and real-terms increase in resources available to local authorities. In the long term, the Spending Review will determine funding for local government from 2020-21 onwards and will enable us to look at local government spending in the round.</p> answering member constituency Richmond (Yorks) answering member printed Rishi Sunak grouped question UIN 224325 question first answered 26/02/2019 17:36:53 answering member 4483 label Biography information for Rishi Sunak
	tabling member	4046 label Biography information for Bridget Phillipson