Local Government Finance

(asked on 10th December 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 assessment he has made of the potential effect of reductions in local government finance on the provision of vital services by those authorities.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 20th December 2021

As announced at the Spending Review, Core Spending Power for local authorities is estimated to increase by an average of 3% in real terms each year, including investment in Adult Social Care reform. By 2024/25 it is expected to rise to around £59 billion.

The Government is providing around £1.6 billion additional grant in each year of the Spending Review, including funding for Supporting Families and Cyber Resilience. This will allow councils to increase their spending on the vital public services they provide, such as Children's and Adults Social Care, and will ensure those services can respond effectively to rising demand and cost pressures.

The provisional Local Government Finance Settlement, published on 16 December, makes available an additional £3.5 billion to councils, including funding for Adult Social Care reform. This is an increase in local authority funding for 2022/23 of over 4% in real terms, to give councils across the country the resources they need to deliver key services.

We expect all of the public sector, including local government, to be looking to get the best value from their spending and to improve efficiency.

Local authorities have the flexibility to use funding in a way that responds to local needs, and can prioritise based on their own understanding of the needs of their local communities.

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