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Gove at LGA: councils to receive two-year financial settlement

Photo: LGA/Gregg Brown Photography

Michael Gove has announced that councils will receive a two-year financial settlement from next year to provide authorities with “financial certainty” and allow them to plan ahead.

The secretary of state for levelling up, housing and communities, speaking at the Local Government Association’s (LGA) annual conference, said: “I’m pleased to confirm that, from next year, I will be introducing a two-year financial settlement to give you that certainty and confidence.”

Gove said he accepted that the government needed to play its part in providing councils with the “resources and tools you need to do your job in the months ahead”.

He added that the settlement should enable authorities “to plan ahead with a degree of confidence and really focus on the delivery of great public services that represent value for money”.

I’m pleased to confirm that, from next year, I will be introducing a two-year financial settlement to give you that certainty and confidence.

Benchmarking performance

In his speech, Gove also announced the creation of the Office for Local Government, which will aim to benchmark and drive performance in councils.

“We’re creating a new body – the Office for Local Government – to shine a light on how local authorities are performing and delivering,” he told LGA delegates in Harrogate.

Gove said the establishment of the new body would help to overcome a lack of transparency and accountability on local authority performance, which made it difficult to celebrate the success of individual councils.

The secretary of state highlighted the success of Essex County Council’s Care Leavers Charter and Newham Council’s work to reduce fly-tipping.

“I want to strengthen the hand of the authorities like these which are doing the right thing, innovating and delivering for those they serve.”

He said the office will initially focus on bringing together, analysing and publishing existing data on services that matter most to the public. These include education, refuse collection and recycling, and adult social care.

In time, the office will look at broader issues such as climate change, the race to net zero and the effectiveness of all partners in the integration of health and social care.

“As a result, taxpayers will be able to see which councils are going the furthest on the environment, which are pioneering transformative children’s services, and which are providing the best value for money in an annual report on local government performance overall,” he continued.

We’re creating a new body – the Office for Local Government – to shine a light on how local authorities are performing and delivering.

Support and action

Gove also highlighted that the office will help to improve central government’s understanding of where support and action are needed across local government.

More information about the formation of the body will be released in the coming months.

Gove said the creation of the office will help strengthen local leadership, which fits into the government’s wider levelling up agenda through the Levelling Up and Regeneration Bill.

He said: “The bill – and our wider approach towards devolution – marks a significant and I hope irreversible commitment towards strengthening local leadership.

“The future in politics is increasingly local, and that is undeniably a good thing.”

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The government has launched a consultation on its proposed business rates reset, potentially leading to a significant redistribution of council funding.

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