Employers' Contributions: Local Government Finance

(asked on 24th February 2025) - View Source

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

To ask the Secretary of State for Housing, Communities and Local Government, what steps she is taking to mitigate the impact of changes to employer National Insurance contributions for local authorities.


Answered by
Jim McMahon Portrait
Jim McMahon
Minister of State (Housing, Communities and Local Government)
This question was answered on 3rd March 2025

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.

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