Introduction
Today, I have set out the provisional local government finance settlement for 2022-23. This is a settlement that, at a national level, makes available an additional £3.5 billion to councils, an increase in local authority funding for 2022-23 of over 4% in real terms. This will ensure councils across the country have the resources they need to deliver key services.
The proposals I am announcing today focus on providing stability by:
Making available up to £3.5 billion more funding for councils across England compared to 2021-22. Overall, this means up to £53.9 billion of funding available for core services.
Providing a new, one-off 2022-23 services grant worth £822 million.
Striking a balance on council tax that helps councils invest in the services they provide to residents while protecting hard-working taxpayers from unfair hikes in rates, with a 2% core referendum threshold and 1% of additional flexibility for councils with adult social care responsibilities.
Making available over £1 billion of additional funding for social care.
Alongside this settlement, the Government will be providing further support to local communities through: £2.6 billion of UK shared prosperity funding, which helps people access opportunities in places in need; a £4.8 billion levelling up fund, which seeks to level up the country by investing in infrastructure that improves everyday life across the UK; and a further £2 billion of investment across the next three years to tackle homelessness and rough sleeping.
2022-23 services grant
Local government delivers a range of services that are at the core of every community.
I therefore propose to create a one-off 2022-23 services grant worth £822 million that will be distributed through our existing settlement funding assessment. We will then take the time to fully consider its future distribution in consultation with councils.
This funding would be excluded from any proposed baseline for transitional support as a result of any proposed system changes.
Adults’ and children’s social care
The Government are committed to ensuring local government has the resources it needs to support the most vulnerable through adult and children’s social care.
I propose, therefore, allocating £700 million of new grant funding going to social care. This means:
£636 million more into the social care grant, including funding for equalisation against the 1% adult social care precept.