Today, the Government has announced a multi-billion pound cash boost for councils worth £49.2 billion – the biggest real-terms increase in spending power in a decade.
In 2020 to 2021 councils will see a 4.4% or £2.9 billion real-term funding increase following a consultation with the local government sector and a vote in the House of Commons.
Local Government Secretary Rt Hon Robert Jenrick MP said:
“This government is committed to levelling up every part of the country, investing in every region and giving communities control over making the decisions which are right for them.
“That’s why we’re confirming the biggest increase in councils’ spending power for a decade across England, while protecting residents from excessive rises in council tax.”
The final settlement includes:
- More funding for social care totalling £1.5 billion
- Preventing excessive council tax rises, with average council tax increases expected to be the lowest since 2016 to 2017 in 2020 to 2021
- Protecting core funding, ensure core funding will increase in line with inflation
- Supporting local economic growth with business rates levy surplus, in which £40 million will be redistributed
- New Homes Bonus Scheme backed by £907 million to encourage local authorities to build new homes
- Rural Services Delivery Grant backed by £81 million to support rural areas
Local MP, Caroline Dinenage, commented:
“Good to see the Government backing our local governments and councils that look after our area. This funding boost will go straight into the heart of our community, helping keep us connected, cared for and vitally ensure our continued growth and prosperity.”