Levelling Up Secretary Michael Gove delivered a statement yesterday in the House of Commons, outlining the final local government finance settlement for 2023-24.
The settlement is comprised of the Local Government Finance Report (England) 2023 to 2024, the Referendums relating to Council Tax Increases (Principles) (England) Report 2023 to 2024, and the Referendums relating to Council Tax Increases.
In recognition of the important role local government plays in supporting communities, Gove announced a 9.4% increase in cash terms of national level core spending power. This equates to £5.1 billion in additional resources for councils.
"Local government delivers a broad range of services for all our communities. That is why we are supporting all tiers of local government through this settlement with a new, one-off funding guarantee that ensures all local authorities will see a minimum 3% increase in their core spending power before taking any local decisions on raising council tax," said Gove.
Regarding council tax, the government has committed to protecting local taxpayers from excessive increases in normal circumstances, with Gove saying, "The package of referendum principles we are proposing strikes a fair balance."
The government is also offering a "significant additional taxpayer subsidy" for social care services, with around £2 billion in additional grant funding.
The government has made changes to the settlement following consultation, including increased new homes bonus allocations and increased rural services delivery grant. Contingency funding has also been increased by £19.1 million, with the funding guarantee recalculated to ensure all authorities will see at least a 3% increase in core spending power.
Gove added that the government has received requests from Thurrock, Croydon and Slough for additional council tax increases to support their financial recovery, and has decided to not oppose these requests.
The statement can be read in full here:
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