£60 billion cash package for councils in England

Michael Gove, the Levelling Up Secretary, confirmed today (19 December 2022) a nearly £60 billion package for councils in England for the next fiscal year to ensure that councils can continue to offer important frontline services.

The agreement means that councils throughout England will receive an additional £5 billion, a 9% increase over last year's settlement, as the government continues to support councils and public services in the face of financial constraints.

The deal for next year includes a one-time Funding Guarantee, which guarantees that every council in England will see at least a 3% boost in core spending power before any local council tax decisions are made. In addition, the government announced today a new £100 million scheme for councils to safeguard the most vulnerable households from council tax hikes, fulfilling a campaign commitment to protect local taxpayers from excessive increases.

Social care is also being prioritized, with the government giving an additional £2 billion in grant funding for adult and children's social care in 2023/24. In addition, NHS England would get £300 million to help increase capacity by simplifying patient discharge.

Following consultation with councils, the government has provided greater clarity through to 2024/25, defining spending for the following two years, allowing town halls to plan ahead with confidence.