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Local Government Finance

19 December 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 proposals and a provisional settlement for local government funding, including increased Core Spending Power and additional social care grants.

Action Requested

The government has launched a formal consultation on the proposals with a deadline of January 16th. The consultation aims to provide certainty and stability to local authorities by ensuring a minimum 3% increase in Core Spending Power and significant additional funding for social care services. Additionally, there is a proposal for bespoke council tax referendum principles.

Key Facts

  • Provisional Local Government Finance Settlement provides a 9% increase in national level Core Spending Power.
  • £5 billion in additional resources are made available to councils.
  • A new Funding Guarantee ensures a minimum 3% increase in Core Spending Power for every local authority.
  • Significant additional funding of around £2 billion is provided for social care services.
  • Council tax referendum principle of up to 3% or £5, whichever is higher, applies for shire districts.
  • The consultation runs until January 16th.
Assessment & feedback
Summary accuracy