19-12-2024
In response to the ‘Provisional local government finance settlement: England, 2025 to 2026’, the Chartered Institute of Public Finance and Accountancy (CIPFA) welcomes the additional funding, particularly for social care, which continues to be a critical issue for local authorities. However, CIPFA continues to call for urgent long-term reforms to create an accountable and sustainable local government finance system that supports local services and ensures transparent decision-making.
CIPFA Chief Executive Owen Mapley, said:
“There is important additional funding detailed in this draft settlement, especially for social care and special educational needs, which remain priority issues for many local authorities. However, while this settlement provides an element of short-term relief to some councils this is just the start of the government’s promised reforms to the archaic and overly complex local government funding system. The continued reliance on business rates and council tax increases places a financial burden on local taxpayers, creating significant uncertainty for councils in the medium and long term.
“Local authorities are already under immense pressure, and this funding boost is insufficient to address the longer-term challenges and funding gaps facing councils across the country. What is urgently needed is long-term, sustainable reforms to the local government finance system. We welcome the recent government consultations on funding reform which, alongside measures to rebuild the local audit system should help to achieve greater accountability, transparency, and fairer decision-making.”
Notes to editor
- Read our response to the 'English Devolution White Paper published on 16 December 2024.
- Read our response to the ‘Local audit reform: a strategy for overhauling the local audit system in England consultation’ published on 18 December 2024.
- For more information or to speak to a CIPFA spokesperson, please contact the CIPFA Press Office press@cipfa.org.