Last Updated on February 8, 2022

Councils in England will be given a spending boost of £54.1bn for the coming financial year, including more than £1bn extra for social care.

The £1bn for social care comes from an additional £636m for the Social Care Grant, an inflationary uplift to the improved Better Care Fund worth £63m and a 1% adult social care Council Tax precept, including flexibility rolled over from last year.

This is the largest cash-terms increase in grant funding in ten years and includes a one-off 2022/23 Services Grant worth £822m for councils to spend as they see fit on local priorities.

The spending boost given to councils will allow them to maintain and improve the services they provide, while protecting residents from excessive Council Tax increases, according to the Levelling Up Secretary.

Last week’s publication of the Levelling Up white paper set out the Government’s plan to transform the nation. According to the paper, councils will be at the forefront of this ambition and the resources to deliver the vital services their communities need will be delivered.

Secretary of State for Levelling Up, Rt Hon Michael Gove, said, 'Levelling up can only succeed if our local partners have the powers and resources they need to help transform their communities.

'The £54.1bn settlement represents a real terms increase of more than 4.5% from last year and will make sure councils can improve local services, protect vulnerable people and build back better from the pandemic.'

The final finance settlement includes:

• More funding for social care: The Government is making more than £1bn of additional funding available for social care to improve conditions for carers and those in need. In addition, £162m will be allocated to help councils and the social care sector prepare for adult social care reform.
• Protecting taxpayers from excessive Council Tax rises: Residents will continue to have the final say over excessive Council Tax increases. From next year, the amount Council Tax can be increased without a vote has been reduced to 2%, plus 1% for councils with adult social care responsibilities, with additional flexibilities for some authorities.

In October 2021, Government set out the outcome of the multi-year Spending Review. Core spending power for local authorities is estimated to increase by an average of 3% in real terms each year, including investment in adult social care reform.

In other news, The Association of Directors of Adult Social Services (ADASS) and the Care & Support Alliance (CSA) have responded to the anticipated impact of rising fuel costs on older people.