Introduction
Local government plays a vital role in supporting, improving and helping communities up and down the land. Councils do amazing work, every day and often away from the headlines, on a huge range of many different subjects and important issues.
This settlement will ensure that councils across the country have further resources available to deliver services to their communities.
Today I am laying before the House the Local Government Finance Report (England) 2023 to 2024, the Referendums relating to Council Tax Increases (Principles) (England) Report 2023 to 2024, and the Referendums relating to Council Tax Increases (Alternative Notional Amounts) (England) Report 2023 to 2024. Together, these form the final local Government finance settlement for 2023-24.
Total funding—core spending power
In recognition of the work undertaken by councils, this settlement makes available an increase of 9.4% in cash terms of national level core spending power. This makes available £5.1 billion in additional resources, to help local authorities to support their communities through challenging times.
Funding guarantee
Local government delivers a broad range of services for all our communities. That is why we are supporting all tiers of local government through this settlement with a new, one-off funding guarantee that ensures all local authorities will see a minimum 3% increase in their core spending power before taking any local decisions on raising council tax.
Council tax
The Government manifesto commits to continuing to protect local taxpayers, in normal circumstances, from excessive council tax increases. The package of referendum principles we are proposing strikes a fair balance. This settlement confirms our intention for referendum principles of up to 3% for core council tax and up to 2% for the adult social care precept in 2023-24, significantly below headline rates of inflation. These provisions are not a cap, nor do they force councils to set taxes at the threshold level. When taking decisions on council tax levels, I expect councillors, mayors, police and crime commissioners and local councils to take into consideration the pressures many households are facing.
The Mayor of London has requested flexibility to levy an additional £20 on band D bills to the Greater London Authority (GLA) precept to provide extra funding for Transport for London (TfL). The Government have expressed ongoing concern about the management of TfL by this Mayor, and it is disappointing that London taxpayers are having to foot the bill for the GLA’s poor governance and decision making. While the Government will not oppose this request, any decision to increase the precept is solely one for the Mayor, who should take into account the pressures that Londoners are currently facing on living costs and his decision to raise his share of council tax by 8.8% last year.