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Rutland and Melton MP secures £600 million boost for councils

By Evie Payne

26th Jan 2024 | Local News

Alicia Kearns MP has campaigned to successfully secure a £600 million Government support package. Image credit: Nub News.
Alicia Kearns MP has campaigned to successfully secure a £600 million Government support package. Image credit: Nub News.

Alicia Kearns MP has campaigned to successfully secure a £600 million Government support package, in addition to funding outlined at the provisional settlement, to help councils across England deliver key services.

Alongside Leicestershire MPs, Alicia has consistently called for increased Government funding for councils. Alicia spoke in a Westminster Hall debate on rural council funding, met with the Local Government Minister, released a report on Government funding with Onward and met with the Chancellor.

The Government has conducted an extensive engagement and listening programme with councils to understand the pressures they are facing including high inflation, driven by the legacy of Covid, and global instability with war in Ukraine and the Middle East. This £600 million announcement reflects the unprecedented challenges they have faced.

The Government's support package will primarily see an additional £500 million added to the Social Care Grant to bolster social care budgets, a key concern raised by councils.

All councils will also see an increase in Core Spending Power of at least 4% through the Funding Guarantee before any local choices on council tax, efficiencies or reserves - an increase from the 3% announced at the provisional settlement.

This funding comes on top the £64 billion package already announced at the provisional Local Government Finance Settlement for 2024-25, and has been welcomed by leading local government organisations including the Local Government Association, County Councils Network and District Councils Network.

The Treasury will be providing £500m with further details set out at the upcoming Budget whilst details on the distribution of this funding will be included in the final Local Government Finance Settlement early next month.

The further £100m comprises of an increase to the Funding Guarantee from 3% to 4%, £15m for the Rural Services Delivery Grant, £3m for authorities with Internal Drainage Boards, and additional funding for the Isle of Wight and the Isles of Scilly with the remainder distributed through the Services Grant.

Alicia Kearns, Member of Parliament for Rutland and Melton, said: "I have been relentless in campaigning to secure the funding our councils deserve, so I am delighted the Government has listened to our concerns and announced this significant boost.

"This funding recognises the financial pressures currently facing our councils, particularly in rural areas where the cost of delivering services is significantly higher.

"Our councils play a vital role in helping us to support the most vulnerable, delivering the key services that our communities rely on every day, and we must do all we can to support them."

Michael Gove, Levelling Up Secretary, added: "We have listened to councils across England about the pressures they're facing and have always stood ready to help those in need.

"This additional £600 million support package illustrates our commitment to local government. We are in their corner, and we support the incredible and often unsung work they do day-to-day to support people across the country."

Simon Hoare, Minister for Local Government, concluded: "This injection of funding will help ensure services which people rely on can continue – and demonstrates how important we view local government. We have listened to various organisations and considered their views seriously and I'm grateful to those who reached out to me.

"The funding offers something for all of our hard-working councils, with additional funding for social care as well as help for rural authorities to deliver essential services."

     

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