She said: “We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers.”
The government blocked several councils from raising taxes above 4.99%, including Hampshire, which had asked to be allowed a 15% increase.
A statement on local government funding, external also confirmed that councils will have access to more than £69bn this year – a 6.8% increase in cash terms compared to 2024-25.
The agreement means no council will see a reduction in core spending power.
More than £2bn of this will come from direct grant funding above revenue received from council tax.
The announcement also confirmed councils will get an extra £5bn to manage the cost of increases to employer National Insurance contributions.
The top-up brings additional funding for next year to around £2bn, on top of £1.3bn announced at October’s Budget.
Specific allocations to mayoral combined authorities remain at zero, meaning they are expected to generate funding through other means.
Source:
www.bbc.com
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