William Eichler 31 October 2024

Budget: Council chiefs call for ‘explicit clarity’ on NI increases

Budget: Council chiefs call for ‘explicit clarity’ on NI increases   image
© parliamentlive.tv

Council leaders have welcomed the announcement of £1.3bn of funding in the Budget but called for clarity on protection from increases to employer National Insurance contributions.

The additional funding means local government budgets for 2025-26 will increase to £14.3bn, providing a real-terms boost in total core spending power of around 3.2%.

However, the employers' National Insurance rise is expected to swallow up approximately £270m of the funding, with minimum wage increases also impacting on budgets.

Cllr Louise Gittins, chair of the Local Government Association, welcomed measures such as Right to Buy reform, funding for potholes, childcare, and affordable housing, but called for ‘explicit clarity’ on whether councils will be protected from the NI increases.

Cllr Tim Oliver, chairman of the County Councils Network, added that the £1.3bn fails to close the local government funding gap, and warned that local authorities will incur ‘significant additional expense’ due to the increase in the National Living Wage.

‘Councils will have little choice but to raise council tax and still will need to take difficult decisions over services to balance their budgets,’ he said.

Cllr Jeremy Newmark, the District Councils’ Network finance spokesperson, said measures in the Budget were ‘important staging points’ on the way towards reforming and protecting council services.

He added that he looked forward to working in partnership with ministers in the run-up to the Local Government Finance Settlement and Spending Review.

Cllr Claire Holland, chair of London Councils, also welcomed the £233m of extra funding to prevent homelessness.

‘We went into this Budget warning of a homelessness emergency that is devastating Londoners’ lives and pushing boroughs to the brink of bankruptcy,’ she said.

‘The measures announced by the Chancellor to support local homelessness services and boost housing growth are hugely welcome, alongside the additional investment in SEND and social care.’

Autumn Budget: What does local government need to hear?

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Democratic Services, Elections & Monitoring Officer

Harborough District Council
Grade 12 £67,236 – £71,223 plus £3000pa Statutory Officer Allowance
We are looking for an accomplished and proactive leader for our vacant post of Head of Democratic Services & Elections Market Harborough, Leicestershire
Recuriter: Harborough District Council

Senior Support Worker

Oxfordshire County Council
£29065.00 - £31022.00
We’re transforming the way we deliver our frontline services to older adults in the heart of their communities to get the best outcomes possible for each and every person we work with. We do this through our commitment of ongoing professional training, Countywide
Recuriter: Oxfordshire County Council

Tree Inspections Officer

Barnsley Metropolitan Borough Council
£35,412 - £38,220
Barnsley Council have an exciting opportunity for two Tree Inspections Officers to join the team based in Barnsley. S70 2RD, Barnsley
Recuriter: Barnsley Metropolitan Borough Council

Planning Policy Officer

West Northamptonshire Council
£39,190 - £41,797
This is alongside a suite of Neighbourhood Plans and supporting policy documents for a unitary area that serves a population of 450,000. The team is supported by a dedicated Monitoring function and works collaboratively with stakeholders, the Planning Pol Towcester
Recuriter: West Northamptonshire Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £25,185 - £25,989 pro rata
WHAT IS INVOLVED? We are looking to appoint a temporary part time Clerical officer/Receptionist within Business Services to provide a professional, Durham
Recuriter: Durham County Council
Linkedin Banner