Rural prosperity requires fair funding
Recent Budget announcements have left many in rural areas feeling overlooked.
Recent Budget announcements have left many in rural areas feeling overlooked.
The Government’s finance policy statement, published in late November, outlined its intentions for the provisional local government finance settlement for 2025/26.
My preliminary discussions with council leaders over recent weeks, ahead of February budget setting, continually brings to bear the reality of the Labour Government’s seismic increase to employer National Insurance contributions.
The Government has announced an extra £1.3 billion for councils in England next year – including £600 million for social care.
Further reductions to council funding would be “disastrous”, the LGA has warned in a letter to Chancellor Rachel Reeves ahead of her first Budget on 30 October.
Vital funding used to boost inclusive economic growth should be extended by a year to avoid a cliff edge in support for local projects, the LGA has urged.
A new relationship between central and local government – providing long-term financial certainty and empowering councils – is the only way to solve the issues facing the country.