Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment her Department has made of the potential impact of the Fair Funding Review 2.0 proposals on levels of (a) council tax and (b) funding of local authorities in (i) London and (ii) other areas.

Local authorities are responsible for setting council tax levels. The Spending Review set out government’s intention to maintain the 3% core council tax referendum principle and a 2% principle for the adult social care precept to protect taxpayers from excessive increases. These principles are in line with the previous government’s policy and OBR forecasts. Final referendum principles will be confirmed at the local government finance settlement each year, subject to approval by the House of Commons, in the usual way.

Our proposals are subject to consultation and decisions have yet to be taken that will determine final allocations and the design of transitional arrangements. Subject to consultation, the proposals set out mean that the most relatively deprived places will on balance see larger increases in income than the least deprived places. We will publish further information in the consultation response by early October, followed by the provisional Local Government Finance Settlement later this year.