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

Social Work Assistant

Durham County Council
Grade 6 £28,142 - £31,022
We are looking to appoint a Social Work Assistant to work within the Easington Locality.   The team provides an effective and efficient Assessment and Durham
Recuriter: Durham County Council

Social Worker For People with Dual Sensory Loss

Durham County Council
Grade 9 - Pre Progression (£35,412 - £39,152) - Grade 11 - Post Progression (£40,777 - £45,091)
Do you have experience of working with people who have dual sensory loss?  Are you a Social Worker or a Visual Impaired Rehabilitation Worker?   We ha Durham
Recuriter: Durham County Council

Community Wellbeing Assistant

Durham County Council
£26,403 - £28,598
Temporary until March 2028 - 30 hour post  Wellbing Sport and Leisure are looking for a Wellbeing Assistant to join their team in the East and West o Durham
Recuriter: Durham County Council

School Administrator

Durham County Council
£26,403- £28,598 (Pro Rata)
School Administrator Grade 5, £26,403- £28,598 (Pro Rata) Permanent- Full Time- 37 hours per week. Required to start 1st September 2026, pending DBS c Durham
Recuriter: Durham County Council

Residential Workers

Durham County Council
Grade 7 £30,024 - £33,699
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council
Linkedin Banner