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Local Government Finance

07 February 2022

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

At a Glance

Issue Summary

The statement outlines the local government finance settlement for England in 2022/23, focusing on stability and certainty with no reduction in Core Spending Power for councils.

Action Requested

The minister announces a £3.7 billion additional funding package for councils, including an £822 million Services Grant, an extra £1 billion for social care, and specific council tax referendum principles to empower local decision-making while protecting residents from excessive increases. The settlement also includes a £150 non-repayable council tax rebate for households in Bands A-D.

Key Facts

  • No council will see a reduction in Core Spending Power compared to 2021/22.
  • The consultation received 148 representations from organisations, individuals, and businesses.
  • Local government will have access to around £1.6 billion in additional grant per year for the next three years.
  • An extra £1 billion is available for social care in 2022/23.
  • A council tax rebate of £150 non-repayable will be provided to households in Bands A-D from April.
  • The total core spending power is expected to rise from £50.4 billion in 2021/22 to up to £54.1 billion in 2022/23.
  • The Mayor of London has requested flexibility to levy an additional £20 on Band D for the Greater London Authority (GLA) precept.
Assessment & feedback
Summary accuracy