Commons Sense

House of Commons · Written Ministerial Statement

Local Government Update

07 December 2020 · Ministry of Housing, Communities and Local Government

Proposed by Robert Jenrick Reform Newark

Local Government

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

View on Parliament.uk

At a glance

Key points

  • The Spending Review outlines the impact on local government funding.
  • Proposals for allocating funding will be presented before the Christmas Recess.
  • Core spending power for councils will increase by an estimated 4.5% in cash terms.

Issue summary

The statement discusses the Spending Review's impact on local government and announces measures to support councils during the pandemic.

Action requested

I intend to bring forward proposals for allocating the funding in the provisional local government finance settlement before the Christmas Recess. The core spending power for councils will increase by an estimated 4.5% in cash terms, worth £2.2 billion in 2021-22.

Key facts

  • Government confirmed a real terms increase of 4.5% in cash terms for councils' core spending power in 2021-22, worth £2.2 billion.
  • The government will compensate councils for 75 per cent of irrecoverable tax losses from this year.
  • Unringfenced grant funding of £1.55 billion is provided for 2021-22; £670 million to cover additional costs due to increased unemployment.
  • The sales, fees and charges scheme will be extended to include the first three months of 2021-22.
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