Local Government Finance

(asked on 17th October 2016) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Communities and Local Government, what representations he has received on allowing local authorities to balance their budgets over a period longer than 12 months since 1 October 2015; and if he will make a statement.


Answered by
Marcus Jones Portrait
Marcus Jones
Treasurer of HM Household (Deputy Chief Whip, House of Commons)
This question was answered on 25th October 2016

Government receives representations on a range of local government finance issues. The annual balanced budget requirement is a key element of the local authority financial control framework. It means that the council is content that underlying income will cover ongoing costs and future commitments in a sustainable and manageable way.

In addition to preparing annual balanced budgets local authorities should prepare multi-year Medium Term Financial Plans. In order to support effective multi-year financial planning the then Secretary of State for Communities and Local Government published an historic four year local government finance settlement on 8 February 2016. Councils across England applied for the four year offer on the 14 October and the government will respond as soon as practicable.

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