UK Government Announces £500m Emergency Funding for Local Authorities
Despite the bailout, council tax hikes are still expected as the funding falls short of what is needed to address long-term challenges.
- England's local authorities are to receive an additional £500m from the government to pay for children's and adult social care, along with extra sums totalling £30-£40m for lower-tier districts.
- More than 40 Tory MPs had signed a letter urging Rishi Sunak to provide more money to avoid big cuts in local services and potential council tax hikes.
- The £500m total is less than council leaders were pushing for, and it will not address the long-term challenge of funding services such as social care.
- Finance bosses at seven councils have issued at least one Section 114 notice - a declaration of bankruptcy - since 2020, with three doing so last year.
- Despite the additional funding, council tax is still likely to rise in many places.