Briefings and responses

On behalf of its membership, the cross-party LGA regularly submits to Government consultations, briefs parliamentarians and responds to a wide range of parliamentary inquiries. Our recent responses to government consultations and parliamentary briefings can be found here.

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Consultation on the 2023/24 Code of Practice on Local Authority Accounting in the United Kingdom: LGA response

In our view, the proposals in the two consultations earlier this year were a valid attempt by CIPFA to alleviate some of the worst of the short-term problems, problems that are both a major aspect of the current crisis and a symptom of the long-term problems. It is therefore disappointing that it has not yet been possible to finalise a satisfactory outcome in response to those proposals. 

Public Audit Forum consultation on Practice Note 10 2022: LGA response

The practice note includes a lot of technical detail that is primarily written for auditors and we have not previously commented on its content, or on recent consultations on changes to it. The reason we feel the need to comment this time is not because we have concerns over the approach taken by the Public Audit Forum to date, but because local audit is currently in crisis, and we would welcome any action that can be taken to help provide solutions that can alleviate the effects of the crisis.

Business Rates Revaluation 2023: Consultation on the transitional arrangements

Our key point in responding to this consultation is that any transitional arrangements for 2023, whether part of the formal scheme or supplementary, should be announced no later than autumn 2022 when the draft list and provisional multiplier are announced. This is in order to make the process as smooth as possible for both ratepayers and billing authorities and allow time for any necessary software changes.

Survey response: Minimum Revenue Provision post-consultation proposal

In our response to the original consultation we raised serious concerns that the proposals could have unintended consequences, for example affecting councils’ ability to invest in infrastructure and housing via wholly owned companies and have serious impacts on some councils’ revenue budgets.

Urgent CIPFA consultation on temporary changes to the accounting code (Infrastructure assets)

The current issues with local audit are complex and have a number of causes including a limited number of firms within the market and a shortage of suitably qualified auditors working for those firms. This situation has been made worse by tighter and stricter regulation of auditors following audit scandals in the private sector and more recently by the difficulty of auditing under COVID restrictions.

Online sales tax: Assessing an option to help rebalance taxation of the retail sector

The LGA supports the introduction of an online sales tax, particularly as it would help to spread the range of the taxbase for business taxes. However; this should not be at the expense of business rates income.

Emergency consultation on temporary changes to the accounting code 2021/22 and 2022/23

Emergency proposals for the update of the 2021/22 Code of Practice on Local Authority Accounting in the United Kingdom: Exceptional consultation on time-limited changes to the Code to help alleviate current delays to the publication of audited financial statements

Final Local Government Finance Settlement 2022/23, House of Commons, 9 February 2022

The LGA has long highlighted that council tax rises – particularly the adult social care precept – have never been the solution to the long-term pressures faced by councils, particularly in social care which is facing severe financial and capacity challenges. Increasing council tax raises different amounts of money in different parts of the country, unrelated to need.

DLUHC consultation on changes to the capital framework: Minimum Revenue Provision

On the face if it this seems like a straightforward proposal with the aim to ensure that the existing Minimum Revenue Provision (MRP) guidance is followed, which is what already happens for the vast majority of local authority debt. However, the results of the proposed changes will be more far reaching than that and there will be significant financial consequences for some councils which will need to be addressed.

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