Late issue of finance settlement to make lawful consultations difficult: Solace

The late issue of the provisional 2017/18 local government finance settlement, “so close to the Christmas break”, is “extremely problematic” and may give local authorities little chance to consult in a way that meets legislative and case law expectations, SOLACE has warned.

In its response to a Government consultation, the Society of Local Authority Chief Executives said: “Our sector has repeatedly asked the Government for greater funding certainty around Revenue Support Grant (RSG) allocations, and so the option of a fixed settlement until 2019/20 has been welcomed by many.

“This would help the budgeting process in many authorities by enabling clearer financial forecasting. However, the Government commitment to deliver this has been complicated by the decision to use the New Homes Bonus to fund social care.”

SOLACE continued: “Likewise, the late issue of the settlement, so close to the Christmas break, is extremely problematic; likewise the ‘drip drip’ release of information regarding other grant notifications – many of which have a significant impact on budgetary assumptions – over a period of weeks after the Provisional Settlement.

“Local authorities, who have a duty to consult with local people over changes to local service delivery, will have little chance to do so in a way that meets legislative and case law expectations if they are to set a budget in the required timeframe and meet all legal obligations, e.g. sending out council tax invoices. A more timely and joined up release of information from Government Departments would greatly assist the Local Government sector in meeting their legal obligations.”

SOLACE added that some members had also suggested that this multi-year settlement information be provided as a ‘minimum funding guarantee’.

“They suggest this would allow for more strategic, sustainable and accurate financial planning, whilst leaving open the option of allocating additional funding through the general formula if required,” the submission argued.

“However, it must be noted that the continued reduction in funding for many authorities since 2010 continues to have a significant impact on councils’ ability to deliver services. Particularly for those authorities with low Council Tax and Business Rates bases, there is a little scope to make up the budget shortfall other than through continuing and severe cuts.”