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

Specialist Teaching Assistant (or Communication Support Worker)

Oxfordshire County Council
£25992 - £33366
About the role Together, we’re shaping children’s education for the future. Every day, our colleagues are helping to transform the lives of the residents of Oxfordshire by providing children and young people with the best possible education. We a Deaf and Hearing Support Resource Base, New Marsto
Recuriter: Oxfordshire County Council

Education Access Specialist

Essex County Council
£42761.0000 - £50307.0000 per annum
Education Access SpecialistFixed Term, Full Time£42,761 to £50,307 per annum Location
Recuriter: Essex County Council

EHCP Casework Officer

Oxfordshire County Council
£44711 - £47754
About the Role We’ve transformed the way we help our communities to get the best outcomes possible for every child and family we work with. As part of this, we continue to invest in Special Educational Needs & Disabilities (SEND), with the growth of Samuelson House
Recuriter: Oxfordshire County Council

Technical Account Supervisor

North Yorkshire Council
£41,511- £45,718
Do you have experience in building surveying, project management or property management? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Education Access Specialist

Essex County Council
£42761.0000 - £50307.0000 per annum
Education Access SpecialistPermanent, Part Time£42,761 to £50,307 per annum (full time equivalent)Location
Recuriter: Essex County Council
Linkedin Banner