CIPFA has highlighted the ongoing challenges faced by local authorities. Credit: Eyesonmilan/Shutterstock.

The Chartered Institute of Public Finance and Accountancy (CIPFA) has expressed support for the recently announced “Provisional local government finance settlement: England, 2025 to 2026”, covering the fiscal year 2025-26.  

The settlement promises an additional £3.7bn ($4.59bn) for social care. 

CIPFA CEO Owen Mapley said: “There is important additional funding detailed in this draft settlement, especially for social care and special educational needs, which remain priority issues for many local authorities.” 

The provisional settlement offers a degree of short-term financial relief for some councils, marking the onset of the government’s promised overhaul of the outdated and complex local government funding system.  

However, in response to the settlement, the CIPFA urges urgent, long-term reforms to establish an accountable and sustainable local government finance system that supports local services and promotes ‘transparent’ decision-making. 

It has highlighted the ongoing challenges faced by local authorities, including the dependency on business rates and council tax increases.  

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This reliance is said to place a financial strain on local taxpayers and generates considerable uncertainty for councils’ medium and long-term financial planning. 

Mapley further noted: “Local authorities are already under immense pressure, and this funding boost is insufficient to address the longer-term challenges and funding gaps facing councils across the country. What is urgently needed is long-term, sustainable reforms to the local government finance system.  

“We welcome the recent government consultations on funding reform which, alongside measures to rebuild the local audit system should help to achieve greater accountability, transparency, and fairer decision-making.” 

In December 2024, the institute called for immediate reforms to England’s adult social care system to end the persistent ‘crisis-cash-repeat’ cycle.  

In a detailed submission to the Health and Social Care Committee, the CIPFA underscored the urgency of establishing a reformed and sustainable adult social care system.