Provisional Local Government Finance Settlement 2019/20

posted on 18 December 2018, updated on 01 January 0001

Councils’ spending power could rise to £46.4bn next year, a real-terms increase, the government has revealed in the provisional settlement. The governmnet has set out a 2.8% cash increase for local government, although this is dependent on authorities raising council tax to the maximum possible.

Of the additional £650m announced for social care in the Autumn Budget, the government announced £240m for winter pressures with the remainder to be used flexibly, on either adult or children’s services. Core council tax will be able rise by up to 3% again and councils will be able to draw on the adult social care precept. However, any 'excessive rises' would have to be approved in a local referendum.

The local government secretary also announced a £16m increase to the rural services grant to maintain funding at last year’s level and recognise the additional costs of providing services in rural communities, and £20m was committed to maintain the new homes bonus baseline at 0.4%.

More information is available from GOV.UK.

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