Local Government: Energy

(asked on 15th October 2021) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what estimate his Department has made of the financial cost relating to the increase in energy prices will be for local authorities in England in financial years (a) 2021-22 and (b) 2022-23.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 21st October 2021

We have empowered local authorities to make decisions on a range of matters that shape what happens in their area. We believe that, for most local government responsibilities, the most effective way to fund them is through councils' Core Spending Power. Core Spending Power is flexible to ensure local areas can prioritise based on their own understanding of the needs of their local communities. 

On 10 February, the Local Government Finance Settlement for 2021-22 passed in Parliament unopposed. This year, we have made available an increase in councils' Core Spending Power of up to 4.6% in cash terms, from £49.0 billion in 2020-21 to up to £51.3 billion in 2021-22. This in real terms builds on the largest year on year increase in spending power in a decade last year and recognises the resources councils need to meet their pressures and maintain critical services


We are committed to ensuring the sector continues to get the support they need to maintain key services and build back better after the pandemic. The forthcoming Spending Review will be the opportunity to consider local government's future funding needs in the round, and we will seek to provide local authorities with longer-term clarity to enable their forward planning.

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