NALC welcomes further capping deferral

The National Association of Local Councils (NALC) has welcomed the Government's proposal in the Local government finance settlement 2019 to 2020: technical consultation to again defer the setting of referendum principles for parish and town (local) councils.

Responding to the publication of the consultation Cllr Sue Baxter, chairman of NALC, said: “I am delighted the government has honoured its commitment not to extend council tax referendum principles to local councils in 2019/20, this being the second of a ‘three-year deal’.

“The average increase in the small share of council tax levied by local councils to invest in local services went down in 2018-19 and at 4.9% – just £3.02 – is the lowest year-on-year increase since 2015-16.

“I want to praise our local councils for showing restraint and continuing to demonstrate fiscal responsibility; we will continue to work with the sector to explore and make the most of different avenues to fund the vital and growing range of local council services their communities depend on.

“I want to place on record my thanks to the local government minister Rishi Sunak MP who I have been in close and regular contact with about parish finances and I am committed to continuing to work positively and constructively with him on this and other funding issues.”

Following extensive engagement from NALC, in 2018-19 the Government decided to defer for three years the setting of referendum principles for local councils, with the current proposal being the second year of the ‘three-year deal’.