The Chancellor of the Exchequer Autumn Statement
Rt Hon Jeremy Hunt MP, presented his Autumn Statement to Parliament today (17 November). The Chancellor confirmed:
- An additional £2.8 billion of funding available for social care in 2023/24, increasing to £4.7 billion in 2024/25. This includes £1 billion of new grant funding next year for social care – increasing to £1.7 billion from 2024/25
- Delaying the planned adult social care charging reforms from October 2023 to October 2025, but the funding intended for implementation will be retained in council budgets to help them meet current pressures
- Further council tax flexibilities, including increasing the core referendum limit for increases in council tax to 3% per year from 2023/24. In addition, councils with social care responsibilities will be able to increase the adult social care precept by up to 2% per year. This will make available an anticipated additional £1.8 billion to councils over the next two years, if councils make use of the flexibilities available (5% total per annum)
- From 1 April 2023, a revaluation will update rateable values for non-domestic properties in England and the multiplier in line with evidence from April 2021. The Autumn Statement announced a £13.6 billion support package to protect ratepayers facing increase. This includes a freezing of the Business Rates multipliers for 23/24, a Transitional Relief scheme to limit the rate at which bills can increase, a more generous Retail, Hospitality and Leisure relief, and the Supporting Small Business scheme to cap bill increases for business that lose relief due to the revaluation. Councils will be fully compensated for any loss of income as a result of these business rates measures and will receive new burdens funding for administrative and IT costs
- The increase in National Living Wage, from £9.50 per hour, to £10.42 per hour from April 2023
- Given that employers are no longer facing the additional pressure of increased employer National Insurance contributions, DLUHC is revising the additional grant funding for councils, announced as part of the 2021 Spending Review, by approximately £200 million in 2023/24 and 2024/25
- The government is capping the amount that social rents can increase by next year at 7% compared to c.11.1% under current rules
- An extension to the Household Support Fund over 2023-24, providing £1 billion additional funding (including Barnett consequentials), bringing total funding to £2.5 billion.
HM Treasury has published the Autumn Statement on GOV. UK alongside a range of supporting documents.