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Financial sustainability of local authorities inquiry


Local authorities deliver a range of services, some of which are set by the government. These include adult social care and waste collection, with local authorities free to provide other services depending on what local needs are. The government’s Ministry for Housing, Communities and Local Government manages overall funding for local authorities and monitors whether local authorities can deliver the services they are legal required to.

A recent National Audit Office report found that financial pressure on local authorities has increased substantially since 2010-11, with a 49.1% real-terms funding reduction. According to the report, services outside adult social care continue to face cuts despite expected council tax increases. It is harder for local authorities to exercise their discretion to provide the right services without finding other ways of generation more council income.

On 9 May the Committee will ask representatives from the Ministry of Housing, Communities and Local Government about their assessment of the current financial health of local authorities, how to ensure they can be sustained for the future, and how to ensure taxpayers are able to continue receiving the local services they need.