Local Government: Employers' Contributions
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Local Government Association's publication entitled Local government finance policy statement – LGA response. published on 28 November 2024, what assessment she has made of the potential implications for her Department's polices of the finding that the planned increase in employer National Insurance contributions could cost the local government sector £1.7 billion in financial year 2025-26.
Answered by Jim McMahon
The government has announced an additional £515 million of support for local government , specifically to manage the impact of changes to employer NICs announced at the Autumn Budget. Final allocations to LAs will be published as part of the final Local Government Finance Settlement.
We recognise the challenges that local authorities are facing as demand increases for critical services.
Taken together, the additional funding announced by the Chancellor at the Autumn Budget and at the 2025-26 provisional Local Government Finance Settlement will provide over £5 billion of new funding for local services over and above local council tax.
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