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

To ask His Majesty's Government with reference to the provisional local government finance settlement 2025–26 published on 18 December 2024, whether the £515 million allocated to compensate local authorities for the increase in employer National Insurance contributions is to cover the costs for the 2025–26 financial year, and whether this funding will be renewed on an annual basis.

The government has announced an additional £515 million of support for local government, including Mayoral Combined Authorities and Fire and Rescue Authorities, specifically to manage the impact of changes to employer (National Insurance contributions) NICs announced at the Autumn Budget. Allocations to local authorities will be announced at the final Local Government Finance Settlement for 2025-26. Spending decisions beyond 2025-26, including on NICs, are a matter for the upcoming Spending Review.