Melanie Dawes, the most senior civil servant at the ministry of housing (MHCLG), has been asked to clarify whether local government spending powers will keep pace with rising costs this year. Clive Betts, chair of the House of Commons MHCLG select committee, wrote to Dawes with follow-up questions after she supplied the department’s financial estimate for 2018–19.
In his letter, Betts said: “The National Audit Office’s recent report on financial sustainability of local authorities noted increasing pressure on costs for local government services arising from increased demand and other factors (for example the introduction of the National Living Wage).
Do you expect that the expected increases in overall spending power of local government in 2018–19 will keep pace with increases in costs, many of which are outside local authority control?”
Betts also asked whether the recent decision to send commissioners to run Northamptonshire County Council would lead to extra costs on top of the estimates provided.
Dawes was also asked to explain the impact on the department’s budget if other authorities become caught in similar financial difficulties.
Betts also asked which budget line will provide the extra £400m of funding for social landlords to remove and replace cladding on tower blocks.
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