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?

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Regeneration

Redbridge London Borough Council
£96,861 - £100,671
Right now, we’re in the midst of ambitious regeneration plans that will transform our borough for generations to come Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Leisure & Culture

Redbridge London Borough Council
£96,861 - £100,671
Our borough’s Leisure and Culture provision is integral to making Redbridge a great place to live Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Leader’s Office

Redbridge London Borough Council
£59,739 - £63,159
This role will see you working at the very centre of the Council’s work Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Operational Services

South Derbyshire District Council
£73,051 to £75,342
Ready to shape the future of a thriving district? Derbyshire
Recuriter: South Derbyshire District Council

Director of Family Help and Safeguarding

Reading Borough Council
£105,836 - £121,235
Lead Transformational and Improvement Change for Children’s Services Reading, Berkshire
Recuriter: Reading Borough Council
Linkedin Banner