From the LGA's Chief Executive

An exclusive message for LGA member councils 

Dear colleague, 

This afternoon the Chancellor, Philip Hammond MP, delivered his first Spring Statement. As expected, there were no new tax and spending announcements in his speech. He did, however, set out the direction of the Government’s thinking on a range of areas of interest to local government and provide an update on progress made since Autumn Budget 2017.

In response, we have issued a media statement. Our Chairman, Lord Porter, also appeared live on BBC News to share local government's on-the-day reaction.

We have analysed the Chancellor’s speech, Written Statements, consultations and other announcements made today, and picked out the key highlights for local government below.

Public spending

• The Chancellor confirmed that “the overall path for public spending for 2020 and beyond” will be set at the 2018 Autumn Budget. A Spending Review will then take place in 2019 to distribute the public spending totals among departments. This usually includes a local government expenditure total as well.
• The next business rates revaluation will be brought forward by one year from 2022 to 2021, with revaluations taking place every three years thereafter. Business rates will not be linked to HMRC digital tax accounts until 2024 at the earliest, as opposed to 2022 as previously announced.

Government consultations and reviews

The Chancellor set out his plans to consult on future changes to the tax system. The consultations of interest to councils are below. We encourage councils to respond and we would welcome the views of councils as we review these papers and consider our own responses.

• The Government is seeking views on how best to use the tax system to address single-use plastic waste and drive innovation in this area – please send your views to sonika.sidhu@local.gov.uk.
• It has also produced a position paper on making sure multinational digital business pay a fair share of tax – please share your thoughts by emailing lgfinance@local.gov.uk.
• Alongside the Statement, Sir Oliver Letwin has published his interim report on the progress of his review into build out rates. We are keen to hear from councils as we continue to engage with this review – please email jo.allchurch@local.gov.uk.
• In the coming months, the Government is also planning to consult on tackling the small minority who deliberately abuse the insolvency regime in trying to avoid or evade their tax liabilities.

Progress on spending commitments made in Autumn Budget 2017

• Over £1.5 billion has been allocated to departments and devolved administrations to prepare for Brexit in 2018/19. The Written Ministerial Statement published today sets out allocations. The Ministry for Housing, Communities and Local Government has not been allocated funding.
• The Government has allocated the first wave of the £190 million Challenge Fund to help roll out full-fibre broadband to local areas. It will provide funding of over £95 million for 13 areas across the UK. Last week, the Government also confirmed the allocations of a £25 million fund for the first 5G test beds.
• The Government is inviting bids from non-mayoral city regions across England for the remaining £840 million of the fund for improving transport in English cities.
• The Chancellor stated that the Department for Education will release up to £80 million to help small businesses with engaging apprentices.
• The Government’s £29 million construction skills fund will open for bids next month to fund up to 20 construction skills villages.
• From next month, £50 million will be available to help employers prepare for the rollout of T-Level work placements.
• As part of an investment programme of at least £44 billion over the next five years to raise housing supply to 300,000 a year by the mid 2020s, the Government:

- Is working with 44 authorities who have bid into the £4.1 billion Housing Infrastructure Fund.

- Is concluding housing deals with authorities who have agreed to deliver above their local housing need.

- Has doubled the value of the Housing Growth Partnership which provides support for small housebuilders to £220 million.

- Has agreed a deal with the West Midlands to have committed to deliver 215,000 homes by 2030/31 facilitated by a £100 million grant from the Land Remediation Fund.

- Will allocate £1.7 billion to London to start building a further 26,000 affordable homes by the end of 2021/22.

- Will make further announcements on the Housing Infrastructure Fund over the next few days.

Best wishes,      Mark Lloyd Chief Executive Local Government Association @MarkLloydLGA