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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

LG Settlement 2014/15

Presentation for the SDCT


Main points
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)


Political slant
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


Choose your measure
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%




Two versions of fairness
Two versions of fairness

Incidence of spending power and cuts by relative levels of deprivation (IMD)


Change in spending p ower 2014 15 all authorities

Change in Spending Power 2014/15 – all authorities


Change in spending p ower 2014 15 shire districts

Change in Spending Power 2014/15 – Shire Districts


Council tax
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


Conclusions
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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