Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will take steps to ensure that the next local government finance settlement includes additional funding to meet higher costs arising from changes to (a) the national minimum wage and (b) employer National Insurance contributions for (i) social care, (ii) respite, (iii) hospice, (iv) charitable, (v) occupational and (vi) other health providers that have been contracted by (A) local authorities and (B) the NHS.
Answered by Jim McMahon
We recognise the challenges that local authorities are facing. We have listened to voices across the sector and we prioritised local government at the Budget, where we announced over £4 billion in additional funding for local government services, including £1.3 billion which will go through the Settlement.
Overall, the provisional Settlement will mean local government receives an around 3.2% increase overall in Core Spending Power. This is a real terms increase. The government has committed to provide support for departments and other public sector employers for additional employer NICs costs. This applies to those directly employed by the public sector, including local government.
We will set out further details at the provisional Settlement in December.
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