Local authorities across England will be encouraged to
submit views to the government’s funding proposals for
the sector in the next financial year.
The consultation confirms that the Core Spending Power of
local authorities is estimated to rise in real terms by
4.3% to £49.1 billion in 2020 to 2021, an increase of
£2.9 billion.
As part of this local authorities will be able to access
an additional £1.5 billion of funding for adult and
children’s social care. This is in recognition of rising
demand and the vital role that social care plays in
supporting the most vulnerable people in society.
Councils will additionally be provided with increases
from wider resources made available from the Spending
Round, including High Needs funding for schools and
colleges which will increase by over £700 million.
There will also be a real-terms increase in the Public
Health Grant and the NHS contribution to the Better Care
Fund will grow in line with the planned additional
investment in the NHS.
Local Government Secretary Rt Hon said:
Local authorities have worked hard over the past decade
to deliver efficiencies and savings, while continuing
to support the running of our vital public services.
This year’s settlement sets the sector on a strong and
sustainable footing for the future as we look to next
year’s Spending Review and a fresh multi-year
settlement.
The government has been listening to local authorities
across the country, and the £49 billion funding boost
that will come into force from next year is the biggest
increase for nearly a decade.
It will allow us to provide more support for areas such
as adult and children’s social care and make sure that
we are supporting the most vulnerable people in our
local communities.
I look forward to working with local authorities
throughout this consultation process and want to ensure
that local communities have access to the highest
possible levels of service, delivered in an efficient
and cost effective way.
The consultation will last for 4 weeks from 3 October
2019 to 31 October 2019 and covers proposals for the
local government finance settlement 2020 to 2021.
The proposed approach to the settlement includes:
-
£1.5 billion for adult and children’s social care
services, including £1 billion of new money. Councils
will have the option to raise up to half a billion
pounds more for adult social care, where needed,
through additional Council Tax flexibilities
-
powers for local authorities to raise Council Tax by
up to 2% plus an additional 2% of adult social care
tax before a local referendum has to take place
-
£900 million for the New Homes Bonus in 2020 to 2021
-
maintaining Improved Better Care Fund funding at 2019
to 2020 levels (£1.837 billion), as well as rolling
in the £240 million which was allocated as Winter
Pressures Grant this year
-
continuing Rural Services Delivery Grant at £81
million, with all recipients receiving the same
amount as in 2019 to 2020
-
confirmation that business rates retention pilots
agreed for 2019 to 2020 will finish at the end of the
financial year. No further pilots will run in 2020 to
2021
-
confirmation of the decision to delay the funding
distribution and business rates retention reforms
until 2021 to 2022
See the full technical
consultation document and how to respond to the
proposals contained within it.
The provisional local government finance settlement for
2020 to 2021 will be published later this year.
