Martin Ford 20 December 2022

District concern in wake of finance settlement

District concern in wake of finance settlement image
Image: EtiAmmos/Shutterstock.com.

Concern over funding for districts has been voiced following the announcement of the provisional local government finance settlement for 2023-24.

The total settlement, which represents a 9% increase on the previous year, amounts to £59.5bn, including a health and social care grant of about £2bn.

Government claimed the settlement will ensure every local authority in England will benefit from at least a 3% increase in core spending power before council tax rises are taken into account.

The District Councils' Network has calculated the core spending increase for its members will be 5% - below the rate of inflation - if all authorities raised council tax to the maximum allowed without a referendum, compared to 9% for all councils.

It is expected to ask for the council tax referendum threshold to be increased from £5 to £10 to compensate in its consultation response.

The County Councils' Network said the settlement was ‘slightly below expectations for some of our member councils’.

Local Government Association chairman James Jamieson said: ‘Underlying and existing pressures remain for councils, and many still face significant challenges when setting their budgets and trying to protect services from cutbacks.

‘Shire district councils – which provide vital services like planning and waste and recycling collection – will also see a lower core spending power increase next year, which is something the Government should address in the final settlement.'

Chair of the Special Interest Group of Municipal Authorities, Sir Stephen Houghton, welcomed slightly larger increases for councils in more deprived areas, but said the settlement ‘fails to provide certainty or financial security for councils’.

He added: ‘Council tax will do much of the heavy lifting, and council leaders face an impossible choice between increasing council tax on hard-pressed families during a cost of living crisis and potentially having to cut back on vital front-line services.’

The Government also announced a new £100m scheme to shield vulnerable households from council tax increases.

Levelling up secretary Michael Gove said: ‘Local government plays an absolutely vital role in helping us to level up, support the most vulnerable and deliver key services that people rely on every single day.

‘We recognise the pressures councils are facing right now, and this spending boost will provide the support and funding local authorities need to continue delivering first-rate public services.’

This article was originally published by The MJ (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Solicitor/ Barrister / Chartered Legal Executive Commercial & Contracts (x2)

Warwickshire County Council
£50,856 to £57,083 per annum
Warwickshire Legal Services (WLS) are looking for two qualified lawyers to join their award-winning, motivated, and nationally recognised legal team. Warwick
Recuriter: Warwickshire County Council

Head of Finance and Deputy s151 Officer

Conwy County Borough Council
£77,153 - £88,545
We are looking for an experienced and strategic financial leader who can operate confidently in a complex, political and fast-changing environment. Colwyn Bay, Conwy
Recuriter: Conwy County Borough Council

ICT Engineer Digital Squad

Durham County Council
£35,412 to £39,152 p.a. (Pay Award Pending)
An exciting opportunity has arisen within the Microsoft 365 Team for an ICT Engineer (Microsoft 365). This role will support Durham County Council's B Durham
Recuriter: Durham County Council

Storekeeper Driver

Durham County Council
£26,403 - £28,598
An opportunity has come up in Highways Services for a Storekeeper/Driver.  They will assist the Stores Supervisor in delivering a customer focussed St Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824 (pay award pending)
We're recruiting to a permanent role within our Pathways Service, which delivers day services to adults with complex needs, Monday to Friday. There i Durham
Recuriter: Durham County Council
Linkedin Banner