Councils receive funding boost for 2020 to 2021
The Ministry of Housing, Communities and Local Government (MHCLG) confirmed that the local government finance settlement for 2020 to 2021 will be £49.1 billion, which is an increase of 4.3% on previous allocations.
The Government has accompanied the announcement with a consultation on detailed proposals on funding local government and is asking local authorities to respond by 31 October 2019.
The proposed approach includes:
- powers for local authorities to raise Council Tax by up to 2% plus an additional 2% of adult social care tax before a local referendum has to take place
- £900 million for the New Homes Bonus (a government grant to incentivise housing growth) in 2020 to 2021.
The provisional local government finance settlement for 2020 to 2021 will be published later this year.
Secretary of State and Local Government Secretary Rt Robert Jenrick MP said:
“This year’s settlement sets the sector on a strong and sustainable footing for the future as we look to next year’s Spending Review and a fresh multi-year settlement. The government has been listening to local authorities across the country, and the £49 billion funding boost that will come into force from next year is the biggest increase for nearly a decade.”
You can see further details on the gov.uk website.