Recommendation 18

The spending review announced on 27 October 2021, covering 2022–23 to 2024–25, provided £4.8 billion (£1.6 billion each year) of new grant funding for local authorities.68 It also announced that council tax would be able to rise by 2% each year without triggering a council tax referendum.69 In addition, authorities with social care responsibilities would be able to set a 1% adult social care precept each year.70 Taking these points together, the government estimated that core spending power would rise by 3% each year after taking account of expected inflation.71 Separately, £3.6 billion will be made available to local authorities outside the local government settlement to fund government reforms to the way service users are charged for adult social care.72