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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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Presentation Transcript
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)

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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