County council funding boost still not enough

The funding injection is aimed at giving councils that need it most more resources to bring back community amenities.

The money is part of a revision of the councils funding settlement so councils have three years of financial certainty, allowing them to plan ahead rather than firefight year to year.

In total, by the end of this multi-year settlement, councils across the country will see an increase of over 23 per cent in their core spending power compared to 2024-25 to pay for services including bin collections, housing, and children’s services.

The government says this marks a turning point away from the outdated system that saw some councils build up savings while others faced financial collapse, to properly recognising local circumstances and the true costs of providing services in deprived communities.

The change to new funding amounts will be phased in gradually to keep services running smoothly.

Lincolnshire County Council will get a £214.7 million increase from 2024/25 (last year) to 2028/29, with £102m relating to council tax income.

There are also additional requirements with some of the funding (so extra cost burdens with the grants).

All councils must still manage their budgets responsibly, and council tax rises will be capped at three per cent per year with an extra two per cent allowed for adult social care.

Coun Sean Matthews, leader of Lincolnshire County Council, said: “Although the provisional figures we’ve had from government gives us some additional funding, it’s important to note that the extra money in no way meets our increasing costs as an authority to just ‘stand still’ and keep providing exactly the same services in the same way. The funding stated by the government is our ‘spending power’ and this relies on (and includes the money from) us increasing council tax by the maximum amount possible every year.

“We will be delivering on our promises to our residents who elected us, by finding millions of pounds of savings in next year’s budget – by eliminating any wasteful spending but also by doing things differently. We have also inherited a legacy of debt from the previous administration and we are working on ways to prevent unnecessary borrowing in future years. The first draft budget proposals will be considered at our executive meeting in January.

“I've been surprised at how late the government have left it to give us the details of how much funding they are providing, which is still not final until February. The timeframe our officers have to determine our spending from April is yet another challenge in managing a complex financial picture, and is something that you wouldn't be expected to do if you were managing a private business.'

Secretary of State Steve Reed said: “This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.

"Today we're making sure every community has the funding they need to succeed."

The government is building a National Care Service, with funding for adult social care and improved care workers’ pay.

The settlement also includes letting councils keep all additional council tax from new homes to encourage local growth and home ownership.