The government is set to unveil proposals on how to deal with the impact of negative revenue support (RSG) grant on local authority finances.
Responding to a question from Liberal Democrat leader Vince Cable in the House of Commons, local government minister Rishi Sunak said: “I am pleased to tell the right hon. Gentleman that the Government will be launching their consultation on negative RSG very shortly, and I look forward to his contribution.”
The proposals to deal with the issue were announced by former communities secretary Sajid Javid, who had promised a consultation “in the spring”.
The issue of negative RSG is caused where changes in revenue support grant have led to a downward adjustment of some local authorities’ business rates top-up or tariff for 2019 to 2020.