More money for social care and schools, a 7 per cent cap on social housing rent rises, and new devolution deals in Cornwall, Suffolk, Norfolk and the North East were among the announcements in last month’s Autumn Statement.
Chancellor Jeremy Hunt said that after listening to councils’ concerns, adult social care charging reforms will be delayed for two years, with funding being retained in local authority budgets to meet current pressures.
He also increased the basic council tax referendum limit from 2 to 3 per cent, and the social care precept from 1 to 2 per cent a year for the next two years.
These additional flexibilities and new funding provide up to £7.5 billion in new funding for social care from 2023 to 2025.
Cllr James Jamieson, LGA Chairman, said: “It is good that the Chancellor has used the Autumn Statement to act on the LGA’s call to save local services from spiralling inflation, demand, and cost pressures.
“While the financial outlook for councils is better than we feared next year, councils recognise it will be residents and businesses who will be asked to pay more.
“We have been clear that council tax has never been the solution to meeting the long-term pressures facing services – particularly high-demand services like adult social care, child protection and homelessness prevention.
“It also raises different amounts of money in different parts of the country unrelated to need and adds to the financial burden facing households.”
He added: “We are pleased that government will provide extra funding for adult social care and accepted our ask for funding allocated towards reforms to still be available to address inflationary pressures for both councils and social care providers.
“Councils have always supported the principle of adult social care reforms and want to deliver them effectively but have warned that underfunded reforms would have exacerbated significant ongoing financial and workforce pressures.”
Other measures affecting councils include an increase in the National Living Wage, an extension of the Household Support Fund in England, and an additional £4.6 billion for schools.
The LGA is calling for some of the latter funding to be allocated to councils, to support children and young people with special educational needs and disabilities (SEND).
