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

Transport Manager

North Yorkshire Council
£38,220 to 42,839 per annum
We operate a fleet of about 1200 vehicles across North Yorkshire. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Assistant Director of Governance, People & Performance (Monitoring Officer)

Arun District Council
c.£95,000
Arun District Council is entering one of the most significant and exciting periods in its recent history Littlehampton, West Sussex
Recuriter: Arun District Council

Public Transport Technical Assistant

North Yorkshire Council
£27,254 - £29,064
Are you someone who is looking to develop skills within an operational service? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Procurement & Contracts Officer - Epping Council

Essex County Council
Up to £21.0100 per hour
Procurement & Contracts Officer - Epping Forest District Council Epping, EssexFull-Time, Temporary - 37 Hours per Week 2-3 Month Contract £21.01 PAYE England, Essex
Recuriter: Essex County Council

Commercial and Operations Manager

Mansfield District Council
£12,098 - £13,756 per annum
This is a part-time opportunity, working alongside a part-time fellow manager of the same title. Mansfield, Nottinghamshire
Recuriter: Mansfield District Council
Linkedin Banner