
CCN Latest News, CCN News 2024 | 20 February 2024
Data compiled by the County Councils Network (CCN) finds that out of 136 county and unitary local authorities in England who have so far published their budget proposals, 128 (95%) plan on raising their council tax by the maximum permitted – 4.99%.
These increases come despite councils receiving an emergency injection of £600m last month, following intense lobbying by CCN. County leaders said that the additional funding is welcome and would help safeguard frontline services, many of which are relied on by struggling households.
However, upper-tier councils in county areas are still under significant pressure. Despite receiving £240m of this additional funding – and planning savings of over £1bn – those county and unitary authorities still face a collective funding gap of £1.1bn over the next two years, even after council tax rises.
County leaders say they recognise that these ‘difficult’ council tax increases will add to residents’ cost of living, but with two-thirds of county authorities’ funding now derived solely from council tax, rises of up to 4.99% are necessary to protect vital services and help prevent financial insolvency in future years.
Councils say that the government’s extra funding next year – and their own council tax rises – gives them breathing space. But with a general election taking place this year, CCN argue the next government must set out a long-term financial plan for local authorities.
CCN’s annual council tax tracker, which analyses published or approved 2024/25 budgets of upper-tier councils in England, reveals:
Last month, the government made available £600m extra to local government for 2024/25. With £500m of this ringfenced for social care, council leaders said the extra funding will make a tangible difference to protecting and enhancing local services, but extremely tough decisions remain in a climate where inflation is still historically high and demand for care services shows no sign of slowing down.
Measures put forward by councils in their budgets include spending on preventative measures in children’s services and adult social care, but savings here will only be realised in coming years. Other proposals include greater use of technology and digitisation, as well as investment in road repairs, town centres, and housing.
Alongside a long-term funding plan, CCN say the next government must undertake a comprehensive reform programme to help drive down costs. This includes overhauling the legislative framework for home to school transport, as well as intervening in the children’s social care market to cap private provider fees to reduce councils’ exposure to unaffordable costs.
Cllr Sam Corcoran, Vice-Chair of the County Councils Network, said:
“This year councils have faced extreme financial pressures, with local authorities having to make some of their toughest decisions ever due to rising costs and spikes in demand for care services. Last month, the government provided a very welcome £600m of additional funding for councils. This will make a tangible difference to protecting valued frontline services and in easing the pressures we face.
“Despite this, county authorities still face a £1.1bn budget shortfall over the next two years. With council tax now accounting for two-thirds of the average county authority’s funding, we have little choice but to take the difficult but necessary decision to raise council tax by 4.99% to continue to protect services and ward off the threat of financial insolvency in the future.
“No council leader takes the decision to raise council tax lightly as we know this will add to the cost-of-living for residents, but councils have had little choice but to put up council tax due to the increased demands, particularly in children’s services. The next government must set out set out a long-term funding plan for councils while also undertaking a comprehensive reform programme to help drive down costs, especially for children’s services and home to school transport.”
Notes to editor
© 2025 County Councils Network | Credits | Site map | Cookies | Privacy Policy.