Today I laid before the House, the “Report on Local Government Finance (England) 2019-20”, the “Council Tax referendum principles report 2019-20” and “Council Tax alternative notional amounts report 2018-2019”, which represent the annual local government finance settlement for local authorities in England.
I would like to thank all colleagues in the House, council leaders and officers who contributed to the consultation after the provisional settlement was published on 13 December.
My Ministers and I have engaged extensively with the sector, including offering a teleconference to all local authorities, and holding meetings with representative groups, including the Local Government Association, and with councils and MPs. Representations from around 170 organisations or individuals have been carefully considered before finalising the settlement.
This settlement is the final year of the four-year offer which was accepted by 97% of councils in return for publishing efficiency plans. This settlement comprises a broad package of measures and confirms that core spending power is forecast to increase from £45.1 billion in 2018-19 to £46.4 billion in 2019-20, a cash-increase of 2.8% and a real-terms increase in resources available to local authorities.
Yesterday, I released £56.5 million across 2018-19 and 2019-20 to help councils prepare for EU exit.
Adult and children’s social care
The Government have listened and responded to the pressures local authorities are facing and announced at autumn Budget in October 2018 that we will be providing additional resources across 2018-19 and 2019-20 to support social care. This funding includes £240 million in both 2018-19 and 2019-20 to support adult social care services to reduce pressures on the NHS, and an additional £410 million social care support grant for local authorities to support adult and children’s social care services. Having considered responses to the provisional settlement consultation, I can confirm that this will be distributed according to the existing adult social care relative needs formula.
The additional resources announced at autumn Budget, alongside the adult social care council tax precept and the improved better care fund, mean that councils will have been given access to £10 billion in dedicated funding that can be used for adult social care over the three years from 2017-18 to 2019-20. For 2019-20, local authorities will have access to £4.3 billion in dedicated resources for adult social care, including £1.8 billion in improved better care fund grant.
Business rates growth, and the distribution of funds within the levy account
In addition, every authority in England also stands to benefit from increased growth in business rates income, which has generated a surplus in the business rates levy account in 2018-19. I can confirm that £180 million will be returned to the sector and distributed based on each local authority’s 2013-14 settlement funding assessment.