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Local Government Finance Update

24 January 2024

Proposing MP
Surrey Heath
Type
Written Ministerial Statement
Department
Department for Levelling Up, Housing and Communities

At a Glance

Issue Summary

The statement discusses additional measures for local authorities, including new funding and increased Core Spending Power.

Action Requested

The government is providing an extra £500 million for social care and increasing the Funding Guarantee to a minimum of 4%. They are also introducing productivity plans for local authorities and establishing an expert panel on financial sustainability. The final Local Government Finance Settlement will be published next month.

Key Facts

  • An additional £600 million funding is being provided, including £500 million for social care.
  • Core Spending Power will increase by up to £4.5 billion or 7.5% in cash terms from £60.2 billion to £64.7 billion next year.
  • The Funding Guarantee increases to a minimum of 4%, up from the previously proposed 3%.
  • A £15 million increase in the Rural Services Delivery Grant, making available a total of £110 million for 2024-25.
  • Additional funding of £3 million will be provided outside the Settlement to support local authorities with Internal Drainage Board levies.
Assessment & feedback
Summary accuracy