Council says government cash will not cover costs

A Surrey council said any council tax increases voted through in 2025 would be cancelled out by a reduction in central government grant.

Guildford Borough Council said it had been told the settlement it would receive for the financial year 2025/26.

The authority said it would receive no increase in its core funding, with the government assuming there would be a council tax increase of 2.99%.

The Ministry of Housing, Communities and Local Government said it plans to put £69bn into council budgets across England.

The council said it would have to meet increasing demands for its services, and rising costs caused by inflation, from its existing resources.

It also said the increased National Insurance costs it would be facing following October's budget would add up to about £1,000 per employee.

A spokesman for the Ministry of Housing, Communities and Local Government said: "We are injecting £69bn into council budgets across England to help them drive forward the government's Plan for Change, a real-terms increase of 3.5% from 2024-25."

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