MP welcomes £30m 'lifeline' funding boost for West Midlands local government

The figure represents an increase of 4.7 per cent, slightly above the current inflation rate of four per cent.

The Department for Levelling Up, Housing and Communities has published details of its core grant to local authorities for the coming financial year.

The figures have been welcomed by Dudley North MP Marco Longhi, who said they would be a lifeline to local authorities struggling to balance the books.

But Councillor Shaun Davies, chairman of the Local Government Association, said the increase would not cover the rising costs faced by local councils.

The figures suggest Sandwell Council will be one of the biggest beneficiaries in the region, gaining an extra £7.2 million in funding. The council has been allocated £152.4 million in its settlement funding assessment, an increase of 4.96 per cent compared to last year.

Wolverhampton Council's settlement for the next financial year will be £113.9 million, a 4.69 per cent increase compared to last year.

Dudley Council will receive £96.4 million, a £4.2 million increase over last year's settlement, representing a 4.77 per cent increase.

Walsall Council will get an extra £4.6 million, taking its settlement to £103 million, a rise of 4.76 per cent.

Staffordshire County Council's settlement has risen by 4.77 per cent to £123 million. Lichfield District Council has been given an extra £100,000, taking its settlement to £2.4 million, while South Staffordshire District Council received a 7.7 per cent boost, taking its settlement up from £2.6 million to £2.8 million.

Stafford District Council also gets and extra £200,000, taking its grant to £3.2 million – a 6.6 per cent increase.

Cannock Chase District Council receives a below-inflation increase of just over three per cent, its settlement increasing from £3.3 million to £3.4 million.

Worcestershire County Council is allocated an extra £2.8 million, an increase of 4.24 per cent. Wyre Forest District Council will get an extra £100,000, a rise of 3.2 per cent.

The figures do not include the extra rural services grant and the top-up for social care.

The settlement was welcomed by Dudley North MP Marco Longhi.

He said: "Local authorities play a vital role in our communities, providing crucial local services that people rely on, but we know the effect of Covid and the war in Ukraine have increased cost pressures.

“It is great news that Dudley will have a funding boost this year. These additional funds will help our local leaders take long-term decisions to deliver a brighter future for their areas.

“This builds on the significant funding boost the council received last year, showing the Government’s plan to ensure local authorities have the resources they need is working.”

Levelling Up Secretary Michael Gove said he had made an extra £64.7 billion available for local authorities in England, an increase in core spending power of up to £4.5 billion, or 7.5 per cent.

"This settlement, and the changes we have made to address concerns raised through the consultation, will provide local authorities with the tools to support their local communities, continue to reform their services for the long-term, and to help communities prepare for the future.

"Every day councils across the country deliver for their communities and play a crucial role in driving forward levelling up.

"This funding package represents an increase of over 9 per cent for councils on last year, ensuring a fair deal for local government that reflects the vital work councils do to provide key services on which we all rely."

But Councillor Davies, who is leader of Telford & Wrekin Council, said real-terms funding had been decimated over the past 14 years.

He said: "The reality is the 7.6 per cent core spending power that the government says it is putting into local councils relies on councils putting council tax up by five per cent themselves."

"Also the cost of providing services is going up by far higher than the 7.6 per cent."