Ahead of today’s Parliamentary debate Communities
Secretary announced extra funding to help local
authorities meet the needs of vulnerable people and
support services in rural areas.
A further £150 million will be available to those
councils providing adult social care. In addition, £16
million will be made available to councils providing
services in rural areas, taking the total rural
services grant to £81 million – the highest it has ever
been.
This follows consultation with local government on the
funding plans announced in December that included
giving councils additional financial freedoms to
deliver services for their most vulnerable residents
while protecting Council Tax payers from excessive
increases in their bills. The threshold at which
councils must hold a referendum before raising Council
Tax has been set in line with inflation at 3%.
Ten additional business retention rates pilots – for
areas of varying sizes and location – were also
confirmed. These areas will keep 100% of growth in
business rates, which will stay in communities and be
spent on local priorities.
Secretary of State for Housing, Communities and Local
Government, said:
Parliament has today approved a settlement that
strikes a balance between relieving growing pressure
on local government whilst ensuring that hard-pressed
taxpayers do not face excessive bills.
We have listened to representations made and
delivered on these requests: a real terms increase in
resources over the next 2 years, more freedom and
fairness, and greater certainty to plan and secure
value for money.
Government has also launched a review of local
authorities’ needs and resources to enable a new
funding system to be devised. Ministers are encouraging
local authorities to respond to the consultation ahead
of the deadline on 12 March 2018.
Further information
The settlement for local government sees a real terms
increase in resources to local government over the next
2 years (£44.3 billion in 2017 to 2018 to £45.6 billion
in 2019 to 2020)
In December the threshold at which local authorities
must hold a referendum in order to raise Council Tax
was confirmed in line with inflation (3%).This change,
combined with the additional flexibility on the Adult
Social Care precept confirmed last year, gives local
authorities support in relieving pressure on local
services – including adults and children’s social care.
Following feedback from the sector as part of the
consultation, the government has today also announced
some additional measures:
- £150 million Adult Social Care Support Grant in
2018 to 2019
- a further £16 million for Rural Services Delivery
Grant in 2018 to 2019 to allow for funding commensurate
with 2016 to 2017 levels
In December, 10 additional business retention rates
pilots – for areas of varying sizes and location – were
confirmed. It is expected that combined these will
raise over £150 million in 2018 to 2019, which will
stay in communities and be spent on local priorities.
The Communities Secretary also published
a consultation on
need and resources in December that aims to
implement a new system based on its findings in 2020 to
2021.
