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

Housekeeper/Domestic Assistant/Cleaner -Longlands

West Northamptonshire Council
12.90ph
Longlands Care home provides exceptional levels of support in nursing, residential and Dementia care. It is situated in Daventry, and it offers a wonderful living environment in which our residents can enjoy an enhanced quality of life. We have te Daventry
Recuriter: West Northamptonshire Council

Maintenance Operative

North Yorkshire Council
£29,064 - £38,220 pro rata per annum
Are you a Maintenance Operative looking to further develop your skills and experience within a construction/repairs environment? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Painter and Decorator

North Yorkshire Council
£29,064 - £34,434 per annum
Are you someone who takes pride in making spaces feel welcoming, safe, and cared for? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Joiner

North Yorkshire Council
£29,064 to £38,220 per annum
Are you a skilled Joiner seeking an opportunity to enhance your expertise? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Highways Development Management - Principal Engineer

Kirklees Metropolitan Council
£45,091- £47,181
At Kirklees, we are seeking to appoint a motivated, enthusiastic and organised Principal Highways Engineer Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner