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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.

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Presentation on theme: "LG Settlement 2014/15 Presentation for the SDCT. Main points July consultation details largely confirmed £130m of holdbacks back into RSG Business rates."— Presentation transcript:

1 LG Settlement 2014/15 Presentation for the SDCT

2 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 15 th (next Wednesday)

3 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

4 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%

5 Revenue Spending Power decreases over the two years

6 Revenue Spending Power less CT less NHS funding

7 Two versions of fairness Incidence of spending power and cuts by relative levels of deprivation (IMD)

8 Change in Spending Power 2014/15 – all authorities

9 Change in Spending Power 2014/15 – Shire Districts

10 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

11 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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