Biggest real terms increase for councils for decade

Following the announcing of further details of the Spending Round, councils can be assured that they will receive the biggest year-on-year real terms increase in funding for almost a decade.

Chancellor Said Javid confirmed that local authorities can expect to see the funding they have access to now rise in real terms by an estimated 4.3 per cent in 2020 to 2021, with a £2.9 billion increase in their core spending including £1 billion government grant for adults and children’s social care.

Alongside more than £700 million of additional funding for children with special educational needs, the funding available to support vital local services next year will come to more than £3.5 billion. Additionally, councils will have the option to raise up to half a billion pounds more for adult social care through additional council tax flexibilities to fund more care home places, more social workers and to provide residents with the local services that they need and deserve.

Communities Secretary Robert Jenrick said: “I am delighted the Chancellor has announced the biggest year-on-year real terms increase in spending power for local government in almost a decade. Next year councils will benefit from £3.5 billion of extra funding available to them for the core services that are so important to residents – including a £1 billion cash grant for social care. This package comes in recognition of the central role that local authorities play in supporting communities and our most vulnerable people across the country.”

The Spending Round also confirmed £422 million to be spent tackling homelessness and rough sleeping next year, £241 million from the Towns Fund being released in 2020 to 2021 will help support high streets, and an extra £24 million to be made available for the building safety programme.

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