UK Councils Face Financial Strain Despite £700m Funding Boost

Local authorities warn that increased funding for social care and national insurance costs will not cover rising expenses or prevent cuts to essential services.

• The UK government announced a revised local government finance settlement, increasing funding for 2025-26 from £1.3 billion to over £2 billion, including £700 million for social care and national insurance costs.
• Councils in London estimate a collective funding shortfall of at least £500 million next year, with significant pressures on homelessness services and other vital programs.
• The County Councils Network and District Councils Network expressed concerns that the funding boost will not address rising costs, with rural councils particularly vulnerable due to shifts in grant allocations toward urban areas.
• The government has maintained restrictions on council tax increases, limiting annual rises to 5% for councils with social care responsibilities unless approved through a local referendum.
• Local government leaders criticized the funding system as inadequate and unsustainable, calling for long-term reforms to ensure councils can meet growing demand for essential services.

4 Articles

BBC Evening Standard Evening Standard Evening Standard