LONDON, Dec. 17 -- The government of the United Kingdom issued the following news:

England's councils willhavealmost £78 billionmade availableforessentialservicesnext yearwithmoremoneygoing to places with the greatest need under aradical overhaul ofhow local government is funded.

The funding injection is aimed at restoring pride and opportunity in left behind places, to get back what has been lost. Councils will have more resources available to bring back libraries, youth services, clean streets, and community hubs.

Themoneyis part of the first multi-year fundingSettlement in over a decade, giving councils three years offinancialcertainty so they canplan aheadrather than firefight year to year.

In total,by the end of this multi-year Settlement,councils will see anincrease ofover 23per centin their core spending powercompared to 2024-25to pay for services includingbin collections,housing,andchildren's services.

And in a turning point for the way local government is funded, the outdated system that saw some councils buildupsavingswhile others faced financial collapse has been replaced.

Instead, places are now being funded using an evidence-based system thatproperly recognises local circumstances and the true costs ofprovidingservices in deprived communities.

Themost deprived10per cent of councils will see a24per centper headboost to thefunding available to them as a result.

All councils will be protected financially during this change, withthe change to newfundingamounts beingphased in gradually to keep services running smoothly for residents.

Secretary of State Steve Reed said:

This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost - to bring back libraries, youth services, clean streets, and community hubs.

Today we're making sure every community has the funding they need to succeed.

Minister of State for Local Government and Homelessness, Alison McGovern said:

Deprivation doesn't happen by accident - it's the result of years of broken systems and wrong priorities. This settlement tackles that head-on by directing funding whereit'sneeded most.

By fixing the link between funding and deprivation,we'regiving local areas the tools to create opportunities, support families, and rebuild the services that hold communities together. This is how we deliver a fairer Britain where everyone has the chance to succeed.

The £600 million Recovery Grant introduced last year will continue throughout the three-year settlement, targeted at areas hit hardest by years of underfunding.

A new Recovery Grant Guarantee willalsoprotectupper tiercouncils receiving this money, giving them above-inflation increases while they adapt to the fairer funding system.

Council tax

The government will continue supporting councils as they move to the new, fairer funding system.

All councils must still manage their budgets responsibly, and council tax rises will be capped at 3 per cent per year with an extra 2 per cent allowed for adult social care.It will be entirely up to local leaders to raise that council tax.

In exceptional cases, councils can apply to raise taxes above this limit - but only if their residentsdon'talready pay more than average.

Six councils with historicallyverylowbills will be given flexibilityfor2yearswith local leaders given the choice to use the flexibility: Wandsworth, Westminster, Hammersmith and Fulham, City of London, Kensington and Chelsea, and Windsor and Maidenhead.

Around 500,000 households in these areasalready havevery lowbills, withBand D householdspayingbetween £450 and £1,280 less in council tax than the average English household.

This temporarymeasuregives them the option of bringing their bills more in line with the rest of the country - making the system fairer.

Social care

The government is building a National CareServiceso people get better quality care, more choice and control over their support.

And ministers have confirmedaround £4.6 billionextraismadeavailable foradult social careby 2028-29tohelp make this happen- including£500 million to improvecare workers'pay.

The governmentisalsorolling outthe biggest transformation of children's social care in a generation - backed by a historic £2.4 billion investment over the multi-year Settlement.

TheSettlement also includes other major changes to make the system work better for councils and residents, including:

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Fairer housing incentives: letting councils keep alladditionalcouncil tax from new homes to encourage local growth and home ownership.

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Simplifying the system:cutting red tape bystreamlining36funding streamsworth more than £56 billionover three yearsand freeing up councils to focus on residents' priorities

Disclaimer: Curated by HT Syndication.