Mark Conrad 05 December 2023

Gove announces funding settlement

Gove announces funding settlement image
Image: Peter Rhys Williams / Shutterstock.com.

Levellling up secretary Michael Gove has announced the local government finance policy statement, ensuring councils will receive a 3% minimum funding increase before council tax.

Mr Gove announced yesterday afternoon that councils will again be limited to a maximum 2.99% council tax increase. The Revenue Support Grant will increase in line with the Consumer Prices Index measurement of inflation.

The Government has also maintained the New Homes Bonus for another year.

But responses to the proposed settlement expressed the sector’s disappointment. The District Councils’ Network (DCN) described the proposed core settlement as ‘tight’ and warned: ‘most district councils will feel they face no alternative other than to put up council tax bills in order to safeguard the services upon which their communities depend’.

Cllr Elizabeth Dennis, DCN finance spokesperson, added: ‘Even if councils go for the maximum council tax rises allowed, the small growth in our income comes nowhere near to keeping up with the inflationary and demand pressures that have accumulated over the past two years and will continue into the next year.’

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

If this article was of interest, then check out, 'Can local government take much more?' 'Preventing future Section 114 notices' and 'How to fix local government finance'.

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