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

Harbour Operative

North Yorkshire Council
£25,614 - £26,847 Per annum
As our Harbour Operative, you will play a key role in promoting the harbour to both visiting and local vessels. Whitby, North Yorkshire
Recuriter: North Yorkshire Council

Bridge Operative

North Yorkshire Council
£26,847 - £28,153 pro rata per
The role has a three-week rota which allows for variety and rotation of weekend working, with additional payments for night and weekend work. Whitby, North Yorkshire
Recuriter: North Yorkshire Council

D1 Licensed Minibus Driver

North Yorkshire Council
£25,614 - £26,847 pro rata per annum
If you love working with people and naturally look out for others, you’re exactly who we’re looking for. Selby, North Yorkshire
Recuriter: North Yorkshire Council

School Crossing Patrol

North Yorkshire Council
£13.28 - £13.92 per hour
We are currently looking for a dedicated School Crossing Patrol officer in Great Ayton who wants to make a real difference to their local community. Easingwold, York
Recuriter: North Yorkshire Council

Principal Lawyer Litigation and Housing

Kirklees Metropolitan Council
£53,051 to £58,258
We are looking for an enthusiastic, hardworking Lawyer to take on a leadership role within our Litigation and Housing Team. Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner