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Provisional Local Government Finance Settlement 2022/23

A top lobbying priority for NALC is to ensure local Councils remain uncapped. Good news therefore in a recent Written Statement by the Secretary of State for Levelling Up, Housing and Communities, Michael Gove MP. The Provisional Local Government Finance Settlement 2022/23 proposes no extension of council tax referendum principles to local (parish and town) councils.

This means that there is no cap on Parish Council precept increases, but note that the Government will be looking at excessive increases and could reverse their decision next year if too many councils increase their demands significantly without clear support from their communities for identified projects.

Whilst NALC is pleased with this result, it has in fact been pushing for a multi-year deal.  NALC will continue to do so in its response to the full consultation now available on the DLUHC website  

The relevant section on local councils is below:

3.5 Council tax referendum principles for town and parish councils

3.5.1 The government has not previously set referendum principles for town and parish councils. This approach was contingent on the sector taking all available steps to mitigate the need for council tax increases and the government seeing clear evidence of restraint.

3.5.2 In 2021/22, the average Band D parish precept increased by 2.8%, the smallest for ten years. In expectation that parish and town councils continue to show restraint when charging council tax, the government proposes to continue with no referendum principles for the sector in 2022/23. It will however take careful account of the increases set in 2022/23 when reviewing the matter ahead of next year’s settlement.