Councils given access to a share of £54.1bn in funding

Councils in England will have access to a share of £54.1 billion in funding for the coming financial year, including more than £1 billion of additional money for social care.

The measures confirmed by Levelling Up Secretary Michael Gove will allow councils to maintain and improve the services they provide, while protecting residents from excessive council tax increases.

This is the largest cash-terms increase in grant funding in 10 years, providing the stability they need to build back better. The funding includes a one-off 2022/23 Services Grant worth £822 million for councils to spend as they see fit on local priorities.

The final finance settlement includes: £556 million allocated to English councils in 2022/23 for the New Homes Bonus; £111 million under the Lower Tier Services Grant to councils with responsibility for services such as homelessness, planning, recycling and refuse collection and leisure services; and a pledge to maintain the Rural Services Delivery Grant at £85 million.

The government recently confirmed a £150 non-repayable council tax rebate to households in England in Bands A-D to help with rising costs. The rebate to bills will be made directly by councils to households from April.

Gove said: “Levelling up can only succeed if our local partners have the powers and resources they need to help transform their communities. Today’s £54.1 billion settlement represents a real terms increase of more than 4.5 per cent from last year and will make sure councils can improve local services, protect vulnerable people and build back better from the pandemic.”

James Jamieson, chairman of the Local Government Association, said: “We are pleased that today’s final Local Government Finance settlement confirms previously-announced extra grant funding and council tax raising powers in 2022/23 to help councils meet the extra cost and demand-led pressures they face to keep providing services at pre-pandemic levels. For that to happen, every council would have to raise council tax by the maximum allowed without a referendum at a time when they know how tough things are for many low-income working households.

“However, it is disappointing that the government has not acted on our call for the final settlement to include further funding to tackle the existing pressures facing our local services, in particular in adult and children’s social care and homelessness support, nor provide investment in vital preventative and early help services. Councils are also increasingly unconvinced that the £5.4 billion allocated for social care through the new Health and Social Care Levy this year will be sufficient to fund adult social care reforms.

“With future years looking challenging, it is crucial that local services have a long-term, sustainable future which gives councils certainty over their funding. This includes the urgent need for clarity from the government on which local government funding reforms will happen and when.”