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Councils desperately-need a significant and sustained increase in overall funding in the Spending Review to meet the requirements being placed on them.

Without urgent action in the upcoming Spending Review, not only will many councils be left with having to make impossible choices on what desperately needed services they can provide in the future, but the opportunity that this moment presents on boosting growth and reform may be missed.

The LGA's submission provides a clear business case for increased investment, financial support and a package of measures to give our members more tools to help communities thrive.

“Extra funding for councils next year will help councils meet some - but not all - of the pressures they face in adult and children’s social care, homelessness prevention and support for children and young people with special educational needs and disabilities."

A new report from the Local Government Association (LGA), SOLACE, and CIPFA calls for urgent reform of the local government funding system, highlighting that an outdated and complex funding model is hindering councils’ ability to plan effectively and meet the growing needs of their communities.

It is vital the forthcoming provisional Local Government Finance Settlement also now fully funds the changes to employer national insurance contributions included in the Budget.

Ahead of the Budget, the LGA has made the case for government to address the cost and demand pressures, which have pushed many councils towards the financial edge.

Councils face a funding gap of more than £2 billion next year (2025/26) as the Local Government Association warns against any “disastrous” further cuts in the Autumn Budget.

“We have been pressing for a pragmatic solution to the backlog in local audit so today’s announcement is positive. We are also pleased the Government has acted on our calls for backstop dates to avoid pre-election periods.

Cllr Peter Marland, Chair of the LGA’s Economy and Resources Board, said: “Public sector workers do an incredible job to keep local services running day-in, day-out. However, while it is good that the Government will fund higher pay awards for parts of the public sector, the announcement did not provide any additional funding for pay in local government. Pay awards in local government are funded through council budgets. Those budgets continue to face severe and unprecedented challenges and therefore the pay offer in local government needs to be affordable to the sector. “The LGA will continue