£2.2 billion funding increase for councils next year

Local Government Secretary Robert Jenrick has announced that councils across England will receive £51.2 billion next year – an increase of £2.2 billion from last year.

The government says that the financial package will provide councils with additional resources to deliver effective local services and continue to support their communities during the pandemic, while protecting council taxpayers from excessive increases. It includes a £2.2 billion increase in core funding – including a £1 billion increase in social care funding to ensure councils can meet rising demand, fund more care home places and social workers, and protect some of the most vulnerable in society.

The Ministry of Housing, Communities & Local Government has also announced the allocations for £1.55 billion of unringfenced funding for councils to continue to support their communities during the coronavirus pandemic and lead the recovery in their local areas. The allocation of this money has taken into account a range of factors including population and deprivation, as well as the varying cost of delivering services across the country. On top of this, £670 million has also been confirmed to enable councils to continue reducing council tax bills for those least able to pay, including households impacted financially by the pandemic.

The total funding will also help tackle rough sleeping, provide support for rural communities and provide rewards for welcoming new homes.

Jenrick said: “Councils have played a critical role leading their communities during the pandemic and delivering vital local services to vulnerable people and we have supported them with £7.2 billion extra funding to date. Today I am announcing a financial package that will provide over £5 billion of extra support next year. This will give councils the resources they need to lead the recovery of their communities while delivering the services that people rely on.”