Councils to get extra £1 billion

AN extra £1bn is to be pumped into councils in England, with local authorities being given more control over they money they raise.

That’s the promise from central government as Communities Secretary James Brokenshire revealed that councils’ funding will go up by £1.3bn to £46.4bn in 2019/20.

The increase “is in recognition of the pressures local authorities are facing to deliver the services residents need whilst protecting taxpayers from excessive increases in bills.”

Cash will be targeted towards local services with “a strong focus” on adult and children’s social care.

The settlement marks the end of a four-year deal - accepted by 97% of councils - which provided local authorities with access to £200bn in the five years to 2020.

Commenting on the funding, Mr Brokenshire said: “This year’s settlement paves the way for a fairer, more self-sufficient and resilient future for local government.

“That is why local authorities will have more control over the money they raise and a real terms increase in their core spending power.

“The settlement also recognises the pressures councils face in meeting growing demand for services and rewards their impressive efforts to drive efficiencies and rebuild our economy.”

From 2020 the government is aiming to increase the level of business rates retention from the current 50% to 75% and to introduce reforms to ensure local councils have “the levers and incentives” to grow local economies.

Fifteen areas, including north and west Yorkshire, have been selected to pilot aspects of the reforms. Thresholds for Council Tax will stay at 3%. Local referendums can be triggered if a council goes above this figure. In Kirklees the rise has been set at 2.99%. During the provisional settlement consultation, some local authorities called for referendum limits to be removed.

However the government says it is committed to protecting local taxpayers from excessive council tax increases, in line with the government’s manifesto.

Kirklees Council was approached to comment on the funding package.