Guildford Council Warns Government Funding Insufficient to Cover Costs

A Surrey council has stated that any council tax increases approved in 2025 would be offset by a reduction in central government grant. Guildford Borough Council confirmed it had been notified of the financial settlement it is due to receive for the 2025/26 financial year. The authority indicated it would receive no increase in its core funding, with the government’s assumption being a 2.99% rise in council tax. The Ministry of Housing, Communities and Local Government announced its plan to invest £69bn into council budgets across England. The council stated it would need to manage increasing demands for its services and rising costs, driven by inflation, using its current resources. It also mentioned that the increased National Insurance costs it expects to face following October’s budget would total approximately £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.”