North Northamptonshire Council wants long-term money from government

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Jason Smithers
Image caption,

Jason Smithers, leader of North Northamptonshire Council, said longer settlement would help with long-term planning

A council leader has called for the government to provide financial settlements of up to four years rather than annually.

A provisional finance settlement for councils is expected next month, but this will cover just one year.

In last year's budget, North Northamptonshire Council (NNC) made an assumption it would have a gap of just over £17m in 2024-25.

Leader Jason Smithers said there was "a rise in demand for our services".

Last month, the Local Government Association wrote to Chancellor Jeremy Hunt, outlining a £4bn funding gap over the next two years.

NNC said its funding gap was currently under review, as the unitary authority prepares its budget for next year.

Each year a council gets money from central government to pay for things like libraries, bin collections and adult and children's social care.

Conservative Mr Smithers said: "We would like to see a three, or even a four-year settlement that recognises the scale of the challenges we face."

He said an increase in demand for services and rising inflation was "placing a significant pressure on the council's finances".

Mr Smithers added: "Unfortunately, single-year settlements hinder the ability of councils to develop effective spending plans over the medium to long term."

Speaking in the Commons last month, Lee Rowley, a Department for Levelling Up, Housing and Communities minister, said the government was "providing councils greater certainty on key aspects of their funding for the next two years".

"It is the government's intention to return to multi-year settlements in the next Parliament, when circumstances allow," he said.

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