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

Highways Team Leader - WMF2602e

Westmorland and Furness Council
£32,061 £32,597
Are you a hard-working and experienced highways operative, looking for the next step in your career? Penrith, Cumbria
Recuriter: Westmorland and Furness Council

Technician - Highway Inspector

Derbyshire County Council
Grade 8 £29,719 - £31,691 per annum
The successful applicant will support with the implementation of service improvements and excellent customer care Derbyshire
Recuriter: Derbyshire County Council

Professional Services Partnering Manager

Derbyshire County Council
Grade 13 £49,178 - £52,937 per annum
Are you passionate about infrastructure, partnership management and making a real impact? Derbyshire
Recuriter: Derbyshire County Council

Supply Chain Lead

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to shape the future of highways delivery through strategic supply chain leadership? Derbyshire
Recuriter: Derbyshire County Council

Housing and Public Protection Business Improvement Manager

The Royal Borough of Windsor & Maidenhead
£53,296 - £58,286 per annum
We have an exciting opportunity for Housing and Public Protection Business Improvement Manager Maidenhead, Berkshire / Hybrid
Recuriter: The Royal Borough of Windsor & Maidenhead
Linkedin Banner