Response to GMB union letter by Government
Dear Rachel,
Thank you for your letter of 18 October to the former Secretary of State for Levelling Up, Housing and Communities, the Rt Hon Simon Clarke MP, about local government spending. Your letter has been passed to HM Treasury. I am replying as the Minister responsible for public spending. I would like to offer my apologies for the delayed response.
Local councils play an essential role in the fabric of our country - providing services which we all rely on and supporting some of the most vulnerable people in our communities.
At Spending Review 2021, the Government set out that councils in England will receive
£4.8 billion of new grant funding between 2022-23 and 2024-25, the largest annual increases in core funding for local authorities in over a decade.
However, the Government recognises that inflation is higher than it was when these budgets were set and is committed to supporting councils to deliver high-quality public services. At the Autumn Statement on 17 November 2022, the Chancellor announced an historic increase in funding for social care, making available an additional £2.8 billion in 2023-24 and £4.7 billion in 2024-25. This includes £1 billion of new grant funding in 2023-24 and £1.7 billion in 2024-25, further flexibility on council tax, and savings from delaying the rollout of adult social care charging reforms.
The Government remains committed to tackling low pay. From 1 April 2023, the National Living Wage (NLW) will increase by 9.7 per cent to £10.42 an hour for workers aged 23 and over. This represents an increase of over £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2 million low paid workers. Young people and apprentices on the National Minimum Wage will also see a boost to their wages.
It's right that workers are fairly rewarded for their input into the economy. This will help us build a high skilled, high productivity, high wage economy. The Government is continuing to support businesses with their energy costs through its generous package of support. Local government pay is negotiated between the National Joint Councils employer and union representatives. Pay is ultimately a decision for local councils.
However, the Government would expect councils to take into account wider public sector pay awards and overall affordability when negotiating the pay settlement.
The Government continues to work closely with the sector to understand the pressures that local authorities are facing across their services. The Government is ready to talk to any council with concerns about its financial position where it cannot take steps to manage pressures locally.
The Department for Levelling Up, Housing and Communities will set out plans for funding allocations in 2023-24 through the upcoming Local Government Finance Settlement.
My sincere thanks for taking the trouble to make me aware of these concerns.
Yours sincerely,
THE RT HON JOHNGLEN MP
