Let me start by saying that I fully recognise the important and tireless efforts undertaken by local councils. They have a vital role in delivering essential public services and building stronger communities right across the country.
The final Local Government Finance Settlement for 2023-24 makes available up to £59.7 billion for local government in England, an increase in Core Spending Power of up to £5.1 billion or 9.4 per cent in cash terms on 2022-23. This is an increase in Core Spending Power of £3.1 billion of taxpayer subsidy to councils in England, before local decisions about council tax changes are made. The settlement for councils for this financial year ensures the most relatively deprived areas of England receive 17 per cent more per dwelling in available resource through this year’s settlement than the least deprived areas.
The Government is giving local authorities in England additional flexibility in setting council tax by increasing the referendum limit for increases in council tax to three per cent per year as of April 2023. Local authorities with social care responsibilities can also increase the adult social care precept by up to two per cent per year. I was encouraged to see the Government put in place a new one-off funding guarantee to ensure all local authorities would see a minimum three per cent increase in their Core Spending Power in 2023-24 before taking any local decisions on council tax levels.
Beyond the annual Local Government Finance Settlement, local authorities receive a wide range of funding from government departments to reflect their broad responsibilities. To help increase the effectiveness and efficiency of the current funding system, the Government has published plans to simplify the funding landscape for local authorities. This includes by simplifying existing funds and putting in place a new Funding Simplification Doctrine next year which will help assess suitable distribution methodologies for new funding streams.