I have welcomed the news that councils will receive a real terms increase in funding for vital local services.
The provisional local government finance settlement, published today, gives councils a real-terms increase in core spending power for 2019 to 2020 – up from £45.1 billion to £46.4 billion. This brings the level of local government funding to more than £200 billion in the five years to 2020.
The £1.3 billion funding boost allows councils to deliver the services residents need while protecting them from unfair hikes in their council tax bills.
This increase follows significant Government investment in local services announced at this year's Budget. The Government is giving councils £650 million for social care next year - building on the £240 million announced to relieve winter pressures on the NHS, £420 million to tackle potholes and £84 million more for children's social care.
The Government is supporting opportunity for every community across the country by increasing business rates retention to 75 per cent from 2020.
Commenting, I said:
"I'm delighted the Government is delivering a settlement which paves the way for a fairer, more self-sufficient and resilient future for local government and a brighter future for the people and places they serve.
"This settlement delivers a real-terms increase in spending for local authorities in 2019 to 2020 and gives them more control over the money they raise too, while protecting residents against excessive council tax rises."
Notes
New statistics show we are increasing core local government spending power in real terms from £45.1 billion in 2018-19 to £46.4 billion in 2019-2020 - a cash increase of £1.3 billion to deliver the high quality services communities need. This is the final year of a multi-annual settlement deal – worth over £200 billion in the five years to 2020 – that was accepted by 97 per cent of councils in return for publishing efficiency plans (MHCLG, Oral statement to Parliament, 13 December 2018).
Building on our strong support for communities at the Budget, where we committed £1 billion of extra funding for local services:
Delivering an extra £650 million next year for social care so that councils are able to provide quality care for the most vulnerable. Councils will receive £240 million in 2018-19 and another £240 million in 2019-20 to provide Adult Social Care. They will also receive £410 million to provide care for children and adults from next year. This support is on top of the £150 million for Adult Social Care we announced after consulting on the provisional Local Government Finance settlement (HM Treasury, Budget, 29 October 2018).
Giving councils £420 million to repair potholes and other minor works so that we can all live in communities we can be proud of. We will make £420 million available immediately via an uplift in the Highways Maintenance block grant to help tackle potholes, bridge repairs and other minor works. £150 million will also be made available to improve local traffic hotspots such as roundabouts (HM Treasury, Budget, 29 October 2018).
Committing £84 million to support children in care and £55 million to the disabled facilities grant so the most vulnerable get the help they need. This investment will help more children to stay at home safely with their families and provide home aids and adaptations for disabled children and adults on low incomes (HM Treasury, Budget, 29 October 2018).
Removing the cap placed on local council Housing Revenue Accounts, which prevents them from using their asset base to borrow to build more homes. This will allow councils to more than double the number of homes they build to around 10,000 each year (HM Treasury, Budget, 29 October 2018.
