Local Government Secretary Rt Hon Robert Jenrick MP has announced that councils across England will receive £51.2 billion in funding next year. This amounts to an increase of £2.2 billion on last year.
£1.55 billion has been allocated as ‘unringfenced funding’ to help councils who are continuing to support local communities struggling with the COIVID-19 pandemic.
Robert Jenrick MP said:
“Councils have played a critical role leading their communities during the pandemic and delivering vital local services to vulnerable people and we have supported them with £7.2 billion extra funding to date.”
“Today I am announcing a financial package that will provide over £5 billion of extra support next year. This will give councils the resources they need to lead the recovery of their communities while delivering the services that people rely on.”
What does this mean for local councils?
For Councils, this means more money to spend. But the question is how much? The £2.2 Billion of additional funds will be spread around all the councils of England, with speculation that the lions share will go to northern councils as part of the Government’s “levelling up” agenda. The details for where the extra money will be distributed are yet to be announced.
- Local Government Secretary confirms £51.2 billion package of funding for local services
- This represents £2.2 billion increase in core spending, including access to extra £1 billion for social care
- Estimated £3 billion additional support for councils to deal with COVID-19 pressures
Local residents will have the power to veto excessive council tax rises, with a referendum being required if councils propose raising the tax by 2% or more, with extra flexibility for some authority types. Before setting rates, councils should take into account the financial circumstances of their residents.
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