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 (£).
