More than £69 billion in funding for England’s councils has been confirmed by the government.

Following the provisional settlement in December, this week’s final settlement announcement provides a 6.8% in cash terms increase in councils’ core spending power compared to 2024-25, the government has said.

As families across the country rely on crucial council services such as social care, the government says it is providing up to £3.7bn additional funding to social care authorities, including an £880 million uplift to the social care grant, compared to 2024-25.

A new £270m children’s social care prevention grant will support the national roll out of vital family help.

And £60m has also been confirmed to fund long-term improvements to the local government sector over the next year, including empowering mayoral areas leading the devolution revolution in delivering local priorities and supporting councils’ financial reporting with a fit and legal audit system to ensure transparency.

According to the government, its maintenance of the 5% referendum principles on council tax increases – the same level set by the previous administration – is to protect taxpayers from excessive increases.

Unlike previous years, this government has introduced a stricter approach to the inherited arrangements that allowed councils to request higher council tax increases if they need exceptional financial support and see increases as critical to maintaining their financial sustainability.

The Deputy Prime Minister, Angela Rayner, said: “Councils deliver vital services across the country – driving growth and local economies and providing a lifeline for those that need it most.

“Through our plan for change we are determined to fix the foundations of local government; investing where it is needed, trusting local leaders and working together to deliver growth, better health and social care services and the affordable homes people need.”

Minister of State for Local Government and English Devolution, Jim McMahon, said: “We have been clear we will fix the foundations of local government. That means an end to short-term solutions and instead rebuilding the sector to put councils on a more stable and secure footing.

“Local leaders play a crucial role in delivering the day-to-day services communities across the country rely on, which is why we want to work with them towards a fairer funding model that tackles regional inequality and prioritises outcomes for local people.”