Today, there has been coverage in the media reporting that councils across the country are facing financial difficulties. We recognise that there are pressures across the sector, and that there is a need to provide stability to council finances.
We have published a policy statement which outlines that we are on course to provide an above-inflation increase in funding to the sector at next year’s Local Government Finance Settlement. We estimate that this will amount to around £4 billion, worth an additional 6% in cash terms to council budgets.
In the current financial year, we have also made an extra £5.1 billion of funding available to local authorities, worth an additional 9.4%.
We are taking steps to ensure stability of funding for councils. While councils are ultimately responsible for their own finances, we stand ready to talk to any council that is concerned about its financial position.
In a written ministerial statement Michael Gove, Secretary of State for Levelling Up, said:
We recognise the need to provide stability to the local government sector. At this year’s local government finance settlement, we are on course to provide an above-inflation increase in funding to the sector.