Local Government Finance

Statement

Following the Local Government Finance Settlement statement made on 6 February 2023, I am today announcing a further £3 million in grant funding for 2023/24 to support 15 local authorities severely impacted by the increase in levies from Internal Drainage Boards. This increase is being driven by the unprecedented rise in energy costs that impact particularly energy intensive services including Internal Drainage Boards. As this has been an exceptional year for the rise in energy costs, this will be an exceptional one-off payment to help ease this additional financial burden on councils. The government will not provide additional grant to local authorities for these levies on an ongoing basis. Councils and Internal Drainage Boards should continue to take action to deliver efficient services and good value for money for the public.

The 15 local authorities in scope are those whose Internal Drainage Board levies account for over 3% of their average Core Spending Power over 5 years. The allocations listed in the table below are based on 2023/24 Internal Drainage Board levy increases.

Allocations of £3 million grant funding for increasing Internal Drainage Board levies