The Government announced a suite of measures primarily aimed at increasing economic productivity and boosting investment by businesses in November’s Autumn Statement.
The plans include a 2 per cent cut to National Insurance rates effective from January 2024, and increases in working-age benefits, the state pension and the National Living Wage.
Calls to ease budget pressures in children’s services and adult social care were ignored.
But the Chancellor did take action on two long-standing LGA calls, by restoring Local Housing Allowance rates to 30th percentile of market rents, and by announcing a £450 million third round of the Local Authority Housing Fund, which will help councils support families to move into their own homes and reduce homelessness risks.
Cllr Shaun Davies, LGA Chair, said: “Supporting businesses and easing the cost of living for households is important, but not if our public services continue to be chronically underfunded and unable to be there to support people when they need them.
“Councils have worked hard to find efficiencies and reduce costs, but the easy savings have long since gone. It is wrong that our residents now face further cuts to services as well as the prospect of council tax rises next year, with councils having the difficult choice about raising bills to bring in desperately needed funding.”
- See ‘The Autumn Statement’ for the LGA’s briefing on the announcement.
