The government has announced an extra £700m for English council budgets next year as a “first step” to rebuild their finances. The top-up brings additional funding for next year to around £2bn, on top of £1.3bn announced at October’s Budget. £515m of the new funding has been earmarked to offset the effect of the rise in National Insurance (NI) contributions from next April. The Local Government Association, which represents councils, said authorities would still “struggle to balance the books” amid wider funding pressures. As under the previous government, they will be able to raise council tax by up to 5% without holding a local vote, with local rises announced next year. The provisional figures cover spending from April next year, and will be subject to consultation and potential further revision in February.
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