Government funding welcomed by Peterborough City Council but ‘financial challenges remain’
More than £69 billion in funding will be distributed to councils across England
Peterborough City Council’s cabinet member for finance has welcomed the government’s latest budget funding, but noted that financial challenges still remain.
Councils across the country will receive a share of £69 billion in funding this year, providing a 6.8% in cash terms increase in Core Spending Power compared to last year.
The government has also maintained the 5% referendum principles on council tax increases.
Deputy Prime Minister, Angela Rayner, said: ”Councils deliver vital services across the country – driving growth and local economies and providing a lifeline for those that need it most.
“Through our Plan for Change we are determined to fix the foundations of local government; investing where it is needed, trusting local leaders and working together to deliver growth, better health and social care services and the affordable homes people need.”
Peterborough City Council’s core funding and grants from the government for 2025/26 amount to more than £230 million, including a £13.2 million revenue support grant.
The authority still faces a battle to balance its books, with the latest draft budget including almost £22 million in savings and transformation plans.
Deputy leader Cllr Mohammed Jamil, cabinet member for finance, says the government funding is a “positive response” but insists that a fairer funding system is needed.
He said: “The announcement this week is the confirmation of funding for 2025/26, following the provisional statement just before Christmas. Changes between the provisional and final settlements are small but provide us with greater clarity on funding to be received.
“For Peterborough, the provisional settlement identified more money to tackle deprivation including homelessness, and also extra funding for Children’s Services to support our prevention work to manage demand. The final settlement confirmed the increase to National Insurance contributions funding that we will receive which was broadly in line with our expectations.
“In addition, the government has also just extended the Family Hubs programme by a further year, which allows us to support even more families through our network of hubs and online information.
“This additional funding is of course most welcome and it is the most positive response from government in quite some time to the challenges that we face in local government. That said, our financial challenges remain and we continue to speak to government about a fairer funding system for local councils, with the expectation that Future Funding Reforms will see funding more appropriately distributed.”
Peterborough City Council’s budget and medium term financial strategy will be discussed at a cabinet meeting on Tuesday, February 11.