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

Graduate Highways Engineer

West Northamptonshire Council
£31,324 - £33,017
This is a fantastic opportunity to begin a career that shapes the way communities grow and move. We’re looking for a motivated, analytical, and curious individual to join our Highways Development Management team at West Northamptonshire Council Northampton
Recuriter: West Northamptonshire Council

Graduate Trainee - Procurement

Essex County Council
£28090.00 - £33047.00 per annum
Graduate Trainee - ProcurementFixed Term, Full Time£28,090 up to £33,047 per annumLocation
Recuriter: Essex County Council

Assistant Director - Resources - South Yorkshire Pensions Authority

South Yorkshire Pensions Authority
£93,559 to £102,865 plus benefits and relocation support
We are looking forward to recruiting a new Assistant Director - Resources who will further develop our thinking and help us realise our ambitions. Barnsley, South Yorkshire
Recuriter: South Yorkshire Pensions Authority

Part Time Business Support Assistant

Essex County Council
Up to £25081.00 per annum
Part Time Business Support AssistantFixed Term, Part Time£25,081 per annum (Full Time Equivalent)Location
Recuriter: Essex County Council

Senior Highways Maintenance Technician WMF2510e

Westmorland and Furness Council
£34,434 - £35,412
In this role, you will work as part of the Furness area Highways team, preparing, designing and processing highway Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner