Employers' Contributions: Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps she is taking to help local authorities deliver essential services following changes to employer National Insurance contributions.
Answered by Jim McMahon
Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax.
The government is providing an additional £2 billion in grant funding through the Settlement, including £502 million to address the impact of employer National Insurance Contributions (NICs) changes on council budgets. A further £13 million has been allocated to Mayoral Combined Authorities, totalling £515 million.
Payments will be unringfenced to allow funding to be used across direct, commissioned, and externally provided local services.
Spending decisions beyond 2025-26 are a matter for the upcoming Spending Review.
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