Pulse.Assent

The government has today (19 December 2017) set out funding plans for councils in England so they can continue to deliver the services their residents need while also protecting Council Tax payers from excessive increases in their bills.

Confirming the local government funding arrangements for 2018 to 2019 – the third year of the £200 billion 4-year funding offer accepted by 97% of councils in 2016 – Communities Secretary Sajid Javid announced measures to give local authorities additional freedom to ensure they can protect services for some of their most vulnerable residents.

Local authorities will now see 2 years of real terms increases in resources available to local government, and from 2015 to 2020, councils in England have access to over £200 billion to deliver the high-quality services their local communities need.

Today the Communities Secretary confirmed that the referendum threshold has been set in line with inflation, and so setting the core Council Tax referendum principles at 3%.

This change, combined with the additional flexibility on the Adult Social Care precept confirmed last year, gives local authorities the independence they need to relieve pressure on local services, including adults and children’s social care, while also recognising that many households face their own pressures.

Communities Secretary Sajid Javid said:

Our historic 4-year funding settlement gave authorities the certainty to plan ahead; with over £200 billion available over the spending period.

However, I am aware of the pressures facing councils and this is why I am giving them more flexibility, so they have greater control over the money they raise to address local needs.

This strikes a balance between giving councils the ability to make decisions to meet pressures and ensure that our most vulnerable in society get the support they need while protecting residents against excessive Council Tax bill rises.

What the financial settlement includes

Additional support for adult social care

In March this year, the government announced an additional £2 billion for adult social care – in addition to more flexibility in using the social care precept – giving councils access to £9.25 billion of dedicated funding for adult social care over 3 years.

The government will continue to anticipate and respond to shifts in demographics through publication of the adult social care green paper in summer 2018.

Future of business rates retention

The Communities Secretary also confirmed the government’s aim to increase business rates retention for all local authorities in 2020 to 2021 to help meet the commitment to give local authorities more control over the money they raise locally.

The government wants local authorities to retain 75% of business rates from 2020 to 2021. This will be through incorporating existing grants into business rate retention including Revenue Support Grant and the Public Health Grant.

Councils will therefore have the levers and incentives they need to grow their local economies.

Business rates pilots

Ahead of this, to test out aspects of the system in a range of authorities across the country, the Communities Secretary announced 10 new areas that have been selected for business rates retention pilots in the 2018 to 2019 financial year.

This move builds on previous pilots originally launched in Liverpool, Greater Manchester, West Midlands, West of England, Cornwall and Greater London in April 2017, which will also continue into next year.

As announced at the Autumn Budget, the London pilot will also be able to keep 100% of its business rates growth from April 2018. The new areas selected to retain 100% of business rates ensure a good geographic spread with a strong representation of rural areas.

The pilots will provide useful information ahead of bringing in increased business rates retention for all local authorities and future reforms, with piloting confirmed to continue to 2019 to 2020. Further details will be available in due course.

Alongside the 2018 to 2019 pilots, the government will continue to work with local authorities, the Local Government Association, and others on reform options that give local authorities more control over the money they raise and are sustainable in the long term.

New Homes Bonus

The Communities Secretary confirmed that there would not be any new changes to the New Homes Bonus in the year ahead, following feedback from councils to the summer technical consultation.

This means that the 0.4% threshold for payments will remain and payments for homes approved after appeal will not be withheld.

In a bid to sharpen the incentive for councils to deliver more new homes, councils that fail to achieve housing growth above this baseline will not receive any bonus payments.

Almost £7 billion in New Home Bonus payments has already been paid, to reward the 1.4 million homes that have been built or brought back into use. Over £946 million will be allocated in 2018 to 2019, with councils free to spend those funds as they see fit to meet local priorities, rewarding them for their work in fixing the broken housing market.

Dealing with Negative Revenue Support Grant

Having considered responses to the technical consultation in the summer around the issue of ‘negative RSG’ in 2018 to 2019, following the delay in implementing full business rates retention after the election, Mr Javid confirmed that the government will be looking at fair and affordable options for dealing with this ahead of consulting on proposals before next year’s settlement.

Rural support

The Communities Secretary has also confirmed an increase to the Rural Services Delivery Grant by £15 million in 2018 to 2019. This means the overall additional funding for rural authorities will remain at £65 million for the remainder of the 4-year settlement.

Review of relative needs and resources

The Communities Secretary has also published a consultation on the fair funding review today, that aims to implement a new system based on its findings in 2020 to 2021.

Alongside this, a summary of the responses to last year’s call for evidence on needs and redistribution has also been published.

Capital receipts

Local government operates in a society that is constantly changing. To meet the challenges of the future, the Communities Secretary confirmed that the flexibility to use capital receipts to help meet the revenue costs of transformation will be extended for a further 3 years to April 2022.

Further information

This relates to England only.

See the local government finance consultation. The deadline for responses is 16 January 2018.

See the fair funding review consultation. The deadline for consultation responses is 12 March 2018.

The areas selected for the business rates pilots are:

• Berkshire
• Derbyshire
• Devon
• Gloucestershire
• Kent and Medway
• Leeds
• Lincolnshire
• Solent
• Suffolk
• Surrey

The Charity Commission is alerting all charities to the importance of providing a safe and trusted environment for anyone who comes into contact with them, including staff and volunteers.

The new alert follows a number of recent reports to the Commission of serious incidents involving concerns about the welfare of charity volunteers and beneficiaries, and media reports of safeguarding incidents in charities.

The alert reminds charities that, if something goes wrong in a charity, trustees are accountable and responsible for putting things right. The Commission says trustees should therefore assure themselves that their safeguarding practices are robust.

It is specifically advising trustees to:

• review their charity’s safeguarding governance and management arrangements and performance if they have not done so within the last 12 months.
• contact the Commission about safeguarding issues, or serious safeguarding incidents, complaints or allegations which have not previously been disclosed to the regulator or the appropriate authorities.

The Commission’s recently revised safeguarding strategy makes clear that safeguarding should be a key governance priority for all charities, not just those working with groups traditionally considered at risk.

Harvey Grenville, Head of Investigations and Enforcement at the Charity Commission, says:

The public rightly expects charities to be safe and trusted environments where people are protected from harm, including the charity’s own staff and volunteers. So all charities need to be alert to the importance of safeguarding those who come into contact with them. What that means in practice will of course depend on the nature and circumstances of a charity’s work.
Trustees of charities in which, for whatever reason, individuals may potentially hold significant authority or power or over others, including their colleagues, must take account of that in setting and implementing safeguarding policies. This includes environments in which individuals, by virtue of their formal position or their experience or personality, are held in high regard and respect by those around them.

The regulator has also published a report of a case involving Oxfam; the Commission engaged with the charity over its handling of a number of concerning allegations about recent and non-recent safeguarding incidents involving senior staff, including allegations of sexual harassment.

The report concludes that the charity demonstrates elements of good practice in its safeguarding management and how it responds to allegations, but that there is further work for the charity to do around HR culture, and the overall governance and management of safeguarding in the charity. As result of the Commission’s involvement, the charity has committed to a number of significant steps, including an externally led review of its HR culture. The full report is published on gov.uk.

Ends

Notes to Editors

1. The Charity Commission is the independent regulator of charities in England and Wales. To find out more about our work, see our annual report.
2. The Commission takes a risk-based approach to safeguarding matters and its role is to ensure that trustees of charities work with or provide services to vulnerable beneficiaries comply with their legal duties, and take reasonable steps to protect them and other persons that come into contact with the charity from harm and minimise the risk of abuse.
3. The Commission is not responsible for dealing with incidents of actual abuse and does not administer safeguarding legislation. It cannot prosecute or bring criminal proceedings, although it can and does refer any concerns to the police, local authorities and the Disclosure and Barring Service (‘DBS’) each of which has particular statutory functions.

The positioning of the UK as a world leader in the development and deployment of 5G technology has received another boost as the government sets out the next steps of its ambitious plans.

Government has today published an update to its 5G strategy, first published at Spring Budget 2017, which outlines our progress to date in delivering against the recommendations of the strategy. It also details the next phase of work aimed at preparing the UK for a 5G future including the steps that the government will take to support investment, and the ongoing programme of 5G Testbeds and Trials.

In October, the 5G Testbeds and Trials Programme launched a £25 million competition to fund an initial series of testbeds and trials. This “Phase 1” competition is focusing on new and innovative use cases for 5G in order to help identify new revenue streams and business models for all parts of the supply chain. At Budget in November, we announced specific funding for 5G projects, and government has today announced that “Phase 2” programme activity will include funding for the first large scale projects.

As part of this, the government has launched a call for views on the appropriate scale and scope of deployment pilots that will help to establish the conditions under which 5G can be deployed in a timely way and help foster the development of 5G in the UK. This includes the timescales over which they should be delivered, the amount of funding contribution which would be appropriate, and the method by which funding should be allocated.

Minister for Digital, Matt Hancock said:

We want the UK to be a global leader in 5G so that we can take early advantage of the benefits that this new technology offers. The steps we are taking now are all part of our commitment to realising the potential of 5G ,and will help to create a world-leading digital economy that works for everyone.

And while the Phase 1 and Phase 2 projects will shortly be underway, it’s important for the government to create the right environment for long-term investment in 5G and other technologies like full fibre broadband .

DCMS is therefore also launching a call for evidence to understand what makes investing in fibre and 5G attractive, and what government could do to support this. The responses will inform the Future Telecoms Infrastructure Review which was announced last month as part of the Industrial Strategy, which set out the need to do more to increase our productivity and to make the most of our untapped potential right across the nation.

Our aim is to be the world’s most innovative economy, and as part of this, the UK needs an integrated, long-term strategy for fixed and mobile networks and this review will determine what conditions will encourage the long term investment needed to secure world-class digital connectivity, that is seamless, reliable, long-lasting and also widely available and affordable to UK businesses and consumers.

Also announced today are the chosen partners for running the 5G innovation Network. A consortium led by CW, in partnership with the Knowledge Transfer Network and TM Forum, have been selected to provide a significant boost to the development of the UK’s 5G ecosystem, whilst contributing to increased inward investment and UK leadership. The Network will:

• Facilitate the coordination and engagement of organisations working on 5G activities in the UK
• Create and maintain an accessible and up to date source of information about 5G activities for industry and
• Establish a global marketing brand as part of a strategy to encourage inward investment and participation in 5G activities in the UK.

ENDS

Notes to Editors

1. The Terms of Reference for the Future Telecoms Infrastructure Review (FTIR) are available online. The FTIR call for evidence outlines a number of different market and policy models, and we are particularly keen to hear how these could generate effective outcomes for consumers in the next decade and beyond, and the pros and cons of these models.
2. The government has committed over £1 billion from the National Productivity Investment Fund to support the next generation of digital infrastructure in the UK including through the delivery of two programmes: the Local Full Fibre Networks (“LFFN”) Programme and the 5G Testbeds and Trials Programme. These programmes aim to stimulate investment in next generation fibre and wireless networks.
3. 5G has the potential to transform communications and is likely to lead to new business models and innovation in service provision. Given the potential size of the global 5G prize – a recent report estimated 5G will enable USD$12.3 trillion of global economic output in 2035 – we need to ensure that the UK is at the forefront of 5G developments, so that we can maximise the potential benefits to our economy and citizens.
4. The business case for 5G is not just about the technology. It’s about discovering new business models. With 4G, the primary use case is consumer mobile services. 5G will be the first network with multiple use cases, serving multiple needs. The Phase 1 competition will focus on new and innovative use cases for 5G in order to help identify new revenue streams and business models for all parts of the supply chain.