Overall funding for local government in England will increase by 6.8 per cent in cash terms compared with 2024/25, according to the final finance settlement, published in early February.
The Government also confirmed that councils will receive extra money to manage the cost of increases to employer National Insurance contributions, while six councils will be allowed to increase council tax above current referendum limits.
Cllr Louise Gittins, LGA Chair, said: “Extra money for councils in 2025/26, including compensation for employer National Insurance increases, will help meet some of the cost and demand pressures they face, but still falls short of what is needed to cover them all.
“This financial year remains extremely challenging for councils of all types, which now face having to increase council tax bills to bring in desperately needed funding, yet could still be forced to make further cuts to services.
“Councils also recognise that having to increase council tax places yet more financial burden on households. We remain clear to the Government that it is not the answer to meeting the long-term pressures facing high-demand national services.
“The Spending Review will be critical to the future of our local services and must include significant and sustained increases in overall funding for councils.”