Introduction
On 12 December, I published a policy statement outlining proposals for the 2023-24 local government finance settlement and details of funding in 2024-25. Today, I have set out the provisional local government finance settlement for 2023-24 and launched our formal consultation on the proposals. This settlement provides a 9% increase in national level core spending power, making available almost £5 billion in additional resources, demonstrating how Government stand behind councils up and down the country.
Together, the policy statement published on 12 December, and this proposed settlement:
Give multi-year certainty to local authorities, allowing them to plan ahead with more confidence over the rest of the spending review period.
Ensure stability by introducing a one-off funding guarantee to ensure that every council sees at least a 3% increase in core spending power next year before any local decisions on council tax rates.
Provide around £2 billion in additional grant for children’s and adult social care in 2023-24.
Maintain a balance on council tax, protecting residents from excessive increases while allowing councils to generate income to deliver local services.
Certainty
Local government has long called for greater certainty on funding following repeated one-year settlements. In the policy statement published on 12 December, the Government have provided this certainty by setting out clearly our intentions and proposals for the 2024-25 settlement.
Stability
Government recognise that all local authorities are facing pressures. In this proposed settlement we are taking action to provide stability for all local authorities, across all tiers of local government, to support the vital work they undertake for communities across the country.
We are introducing a new, one-off funding guarantee that ensures every local authority will see a minimum 3% increase in their core spending power, before taking any local decisions to increase council tax rates.
Social Care
Adult and children’s social care services provide crucial support to care users and young people in need, and this proposed settlement provides significant additional funding for this key area of concern. Government have listened, and we know that many local authorities are already facing difficult decisions brought on by inflationary and demand pressures. This is why we are providing around £2 billion in additional grant for social care, compared to 2022-23. Additionally, for social care authorities, we are consulting on a 2% precept for 2023-24. The council tax referendum provisions are not a cap, nor do they force councils to set taxes at the threshold level. When taking decisions on council tax levels, local authorities should recognise the pressures many households are facing.