Additional £64bn funding for councils welcomed by local government organisations
The Levelling Up Secretary has announced more than £64 billion in funding to bolster council budgets in England and ensure they can deliver frontline services.
The final local government finance settlement for 2024-25 makes available up to £4.5 billion more for councils in England in 2024-25, an above-inflation increase of 7.5 percent on the previous year, with £64.7 billion for local government overall.
£600 million in extra support to bolster council budgets is included in the package, including £500 million for social care, announced on 24 January. This support was announced following the consultation on the provisional local government finance settlement.
Local government organisations such as the Local Government Association, County Councils Network, and District Councils Network have welcomed the additional funding.
The government is also supporting all councils through the sector-wide Funding Guarantee, ensuring that all councils will see an increase in Core Spending Power of at least four percent before any local choices on council tax, an increase from the three percent announced at the provisional settlement.
Councils will be able to increase council tax by up to three percent without a local referendum, with a further two percent for those responsible for adult social care services.
The Secretary of State has also confirmed additional council tax flexibilities for some failing councils, reflecting the most serious of circumstances.
This decision has been taken in light of the scale and nature of these failings, the individual council’s financial situation, and the need for ongoing government intervention to drive improvement and recovery, says the UK Governement.
It has been clarified to each of the councils that in implementing any additional increases, they should take steps to mitigate the impact on those least able to pay.
Levelling Up Secretary Michael Gove: “Today, I set out the final Local Government Finance Settlement for 2024-25. This makes available up to £64.7 billion for local authorities in England, an increase in Core Spending Power of up to £4.5 billion, or 7.5% in cash terms, on 2023-24.
“This settlement, and the changes we have made to address concerns raised through the consultation, will provide local authorities with the tools to support their local communities, continue to reform their services for the long-term, and to help communities prepare for the future.”
Further details on this latest funding, including allocations for individual councils and the summary of responses to the provisional settlement consultation, can be found on the final local government finance settlement page.
The Chancellor of the Exchequer Jeremy Hunt recently unveiled the Spring Budget 2024, which sets out the UK Government’s plans for tax and spending policy in the UK.