Autumn Budget 2024: CCN Responds

Today the Chancellor has delivered her Autumn 2024 Budget, which included an additional £1.3bn for local government in 2025-26.

This additional grant funding for local government includes £600m for adult social care. The funding arrangements for these announcements, including distribution, will be made at the local government finance settlement later this year.

The Budget also confirmed that the government will seek to reform both the special educational needs and disabilities (SEND) system and children’s services, and will set out further plans in the 2025 Spending Review.

Below, the County Councils Network responds to today’s announcement.

Cllr Tim Oliver, Chairman of the County Councils Network, said:

“Today’s announcement of £1.3bn in new core funding for councils offers some welcome relief to the day-to-day financial pressures facing councils next year and will make budget setting for our councils an easier task for 2025/26. The additional investment of £1bn in special educational needs is also vital, and we are pleased the government recognises this as a down payment ahead of reforming the system to make it sustainable in the long-term. The extension in the Household Support Fund and funding for roads, social housing, Extended Producer Responsibilities and local buses will have a positive impact on local areas.

“However this funding does not eradicate councils’ funding gap, and local authorities will incur significant additional expense due to the increase in the National Living Wage. Therefore, councils will have little choice but to raise council tax and still will need to take difficult decisions over services to balance their budgets.

“We now await December’s local government settlement to set out how this funding will be distributed. Ahead of the Spending Review and when consulting on proposed reforms to local government finance, the government should not seek to unfairly redistribute any existing resources next year which would worsen the financial challenge for some councils. It must also ensure that all council types receive a fair share of the £1.3bn of new resources, while ensuring that there is a fair approach to council tax equalisation.   

“Today’s Budget was also important in that the government pledged to reform both children’s services and SEND within the Spending Review next year. Considering they are both two of local government’s biggest financial pressures, reform of both is vital and urgent. Therefore it is necessary that reform is implemented within 12 months of the Spending Review, with councils given the powers and resource to fix the foundations in both service areas.

“The government has also confirmed its intention to explore local government reorganisation as part of its devolution and reform agenda. With several County Councils Network members becoming unitary authorities over recent years, we will work closely with the government to develop their proposals.”