Council leaders have welcomed the announcement of a £500m boost to social care budgets but caution they still face ‘difficult decisions’ relating to service cuts and council tax rises.
Levelling Up Secretary Michael Gove has confirmed £500m will be added to the Social Care Grant to support local authorities with social care responsibilities.
A further £100m will also increase the Funding Guarantee from 3% to 4%, boost the Rural Services Delivery Grant by £15m, and provide councils with Internal Drainage Boards with £3m.
The Isle of Wight and the Isles of Scilly will also receive a share of this £100m while the remainder will be distributed through the Services Grant.
The details on the distribution of this funding will be included in the final Local Government Finance Settlement next month.
Mr Gove commented: ‘We have listened to councils across England about the pressures they’re facing and have always stood ready to help those in need.’
Responding to the announcement Cllr Shaun Davies, Chair of the Local Government Association, said: ‘The LGA welcomes that the Government has acted on the concerns we have raised and recognised the severe financial pressures facing councils, particularly in providing services to the most vulnerable children and adults through social care services and delivering core front-line services to communities.’
Cllr Tim Oliver, chairman of the County Councils Network (CCN), welcomed the announcement but added: ‘Whilst this extra funding will undoubtedly help us protect valued frontline services, councils, of course, still face difficult decisions when setting their budgets for 2024/25.
‘Service reductions will still be necessary for councils in some areas to balance their books, while the majority of councils will still have little choice but to propose maximum council tax rises.’ Cllr Sam Chapman-Allen, chairman of the District Councils’ Network (DCN), said the funding offers ‘some relief’.
‘But it’s important to note that the financial and operating challenges for district councils remain significant. It is clear that more comprehensive solutions will still be needed to fully address the ongoing financial pressures, including homelessness.’
UNISON head of local government Mike Short commented: 'Under-pressure local authorities will jump at the chance of extra money, but emergency bailouts won't magic away the massive financial shortfall councils face. Nor will they provide the resources needed to get vital public services back on track.'
