Let me start by saying that I fully recognise the important and tireless efforts undertaken by local councillors. They have a vital role in delivering essential public services and improving communities right across the country.
As laid out in the 2022-23 Local Government Finance Settlement, councils are expected to see a cash terms increase of over 4.5 per cent in Core Spending Power this financial year, meaning that up to £54.1 billion will be available. This includes a new one-off £822 million grant to support all services delivered by local councils.
The 2021 Spending Review confirmed that local authorities are expected to see an average estimated increase in Core Spending Power of three per cent in real terms in each of the next three years to 2025. Councils will also be provided with around £1.6 billion of new grant funding in each of the next three years, on top of the funding to implement social care reform. This will include funding for family help services as well as over £37 million of additional funding to tackle cyber security challenges facing councils and invest in local authority cyber resilience.
I completely understand concerns about the impact of rising inflation on the provision of local services and the local government sector. Having spoken to colleagues, I am aware that the ways in which inflation interacts with local government finances are complex. Not all areas of local government expenditure will be sensitive to inflation, for instance, and some local authorities have multi-year contracts in place. I have been assured that the Government is working with the local government sector to understand the impacts of inflationary increases.
Finance settlements for local government are set out each financial year, with a draft statement made available for local authorities and other interested bodies to comment on before the settlement is finalised. Ahead of the upcoming settlement for 2023-24, I am assured that the Government will be engaging extensively with the sector.
I know that, like me, Ministers completely understand the importance of providing certainty to local government, particularly in the context of rising prices and inflation.