Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether she has made an assessment of the potential impact of changes proposed by clause 1 of the National Insurance Contributions (Secondary Class 1 Contributions) Bill on future trends in the level of local authority funding for fiscal years (a) 2025-26, (b) 2026-27 and (c) 2027-28.

Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax.

The government is providing an additional £2 billion in grant funding through the Settlement, including £502 million to address the impact of employer National Insurance Contributions (NICs) changes on council budgets. A further £13 million has been allocated to Mayoral Combined Authorities, totalling £515 million.

Payments will be unringfenced to allow funding to be used across direct, commissioned, and externally provided local services.

Spending decisions beyond 2025-26 are a matter for the upcoming Spending Review.