Multi-billion spending increase for councils confirmed

Local Government Secretary Robert Jenrick has confirmed the largest increase in councils’ spending power for a decade through the local government finance settlement.

Following a vote in the House of Commons, the government confirmed councils in England will have access to a share of £49.2 billion in 2020 to 2021, an increase of £2.9 billion or 4.4 per cent in real-terms. The decision will give councils access to a £1.5 billion boost for social care funding and ensures, on average, residents can expect to see the lowest increase in council tax bills since 2016.

The settlement makes £1.5 billion of new funding available for adult and children’s social care, supporting local authorities to meet rising demand. The package includes £1 billion of new grant funding, a continuation of all existing social care grants, and the ability for authorities to raise up to £500 million more for adult social care, where needed.

The final settlement also pledges £40 million to be redistributed to councils following increased growth in business rates income, and £907 million to continue the New Homes Bonus scheme in 2020 to 2021.

Jenrick said: “This government is committed to levelling up every part of the country, investing in every region and giving communities control over making the decisions which are right for them. That’s why we’re confirming the biggest increase in councils’ spending power for a decade across England, while protecting residents from excessive rises in council tax.”