Government proposals to increase local government core spending power by 9.2 per cent in 2023/24 will help councils manage inflationary and other cost pressures, the LGA has said.
However, shire district councils will see a lower increase than other authorities, while “underlying and existing pressures” remain and many councils still face “significant challenges” in setting budgets, it warned.
The increase is set out in the provisional local government finance settlement, which is out for consultation until 16 January.
The Government’s forecasts assume that councils will raise their council tax by the maximum permitted without a referendum. Those thresholds were raised to 3 per cent plus a 2 per cent social care tariff in November’s Autumn Statement.
The LGA has long argued that council tax rises are not a solution to the long-term pressures faced by councils, particularly in respect of adult social care, and could place a significant burden on households during the current cost-of-living crisis.
In its initial response to the provisional settlement, the LGA also called for: publication of the public health grant; clarity on the future of the New Homes Bonus beyond 2023/24; and reforms to address pressure on councils’ high needs budgets for children with special educational needs and disabilities (SEND).
The Government has also published a ‘Local government policy statement for 2023-24 to 2024-25’, its two-year ‘blueprint’ for council finances.
Cllr James Jamieson, LGA Chairman, said: “The increase in local government core spending power next year will help councils deal with the inflationary and other cost pressures they face. Underlying and existing pressures remain for councils and many still face significant challenges when setting their budgets and trying to protect services from cutbacks.
“Shire district councils – which provide vital services such as planning and waste and recycling collections – will also see a lower core spending power increase next year, which is something the Government should address in the final settlement.
“Councils want to work with government on a long-term plan to fund local services and a turbo-charging of wider devolution, where local leaders have sustainable funding and greater freedom to take decisions on how to provide vital services in their communities.”
