Commons Sense

House of Commons · Written Ministerial Statement

Local Government Finance

06 February 2020 · Ministry of Housing, Communities and Local Government

Proposed by Robert Jenrick Reform Newark

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The local government finance settlement for England in 2020-21 includes a 49.2 billion increase in Core Spending Power.
  • An additional 6 billion is allocated specifically for social care funding.
  • Councils are permitted to raise council tax by up to 4% for adult social care without needing a referendum.

Issue summary

The statement presents the final local government finance settlement for England in 2020-21, including an increase in Core Spending Power and additional funding for social care.

Action requested

The minister announces a £49.2 billion core spending power increase for 2020-21, with £6 billion dedicated to social care, allowing councils to raise council tax by up to 4% for adult social care services without a referendum. The New Homes Bonus will receive £907 million and the Rural Services Delivery Grant will remain at £81 million.

Key facts

  • Local government finance settlement delivers an increase in Core Spending Power from £46.2 billion to £49.2 billion.
  • Additional £1.5 billion for social care, including a proposed 2% council tax precept and £1 billion grant.
  • New Homes Bonus allocations amounting to £907 million with an additional £7 million commitment.
  • Rural Services Delivery Grant maintained at £81 million.
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