The biggest increase in councils’ spending power for a decade confirmed by the Local Government Secretary, Rt Hon Robert Jenrick MP.
Following a vote in the House of Commons, the Government confirmed councils in England will have access to a share of £49.2bn in 2020 to 2021, an increase of £2.9bn or 4.4% in real-terms.
The settlement will give councils access to a £1.5bn boost for social care funding and ensures, on average, residents can expect to see the lowest increase in council tax bills since 2016. The final settlement also incentivises local economic growth with £40m to be redistributed to councils following increased growth in business rates income. In addition, the Government has committed £907m to continue the New Homes Bonus scheme in 2020 to 2021. The scheme financially rewards local authorities for the number of new homes they build locally, incentivising housing growth and creating homes for local residents.
Local Government Secretary Rt Hon Robert Jenrick MP said: “This government is committed to levelling up every part of the country, investing in every region and giving communities control over making the decisions which are right for them.
“That’s why we’re confirming the biggest increase in councils’ spending power for a decade across England, while protecting residents from excessive rises in council tax.”
Provisional plans for the local government finance settlement for 2020 to 2021 were published in December, followed by a period of consultation with the sector.
This included the consideration of over 200 representations across technical and provisional consultations from a range of organisations, and ministers met with representative groups including local councils, MPs and the Local Government Association.
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