Department Overly Reliant On Favourable Outcome From 2019 Spending Review

The Ministry of Housing, Communities and Local Government (the Department) has not yet developed a plan to secure their long-term financial future. It is not transparent enough about its understanding of the pressures faced by local authorities, meaning Parliament and the taxpayer cannot be sure that it genuinely understands or is addressing the issue. The Department is overly reliant on a favourable outcome from the 2019 Spending Review to address authorities’ financial issues. This is particularly complacent given that the previous Spending Review settlement resulted in many local authorities having to rely on reserves to fill the gaps in funding. This is an unsustainable situation. Read more on the Parliament website.

https://www.parliament.uk/business/committees/committees-a-z/commons-select/public-accounts-committee/news-parliament-2017/financial-sustainability-local-authorities-report-published-17-19/