Councils in England will have access to a share of £54.1 billion in funding for the coming financial year, including more than £1 billion of additional money for social care, to ensure improved conditions for carers and those in need.

In addition, £162 million will be allocated to help councils and the social care sector prepare for adult social care reform, ensuring the system is fit for future generations.

A report from the Department for Levelling Up, Housing and Communities has said that this is the “largest cash-terms increase in grant funding in 10 years”, aimed to provide the stability needed for councils to build back better.

This includes a one-off 2022/23 Services Grant worth £822 million for councils to spend as they see fit on local priorities. The measures, first mentioned in the Levelling Up white paper and confirmed by Levelling Up secretary Michael Gove will allow councils to maintain and improve the services they provide while protecting residents from excessive council tax increases.

“Levelling up can only succeed if our local partners have the powers and resources they need to help transform their communities,” said Gove. “Today’s £54.1 billion settlement represents a real-terms increase of more than 4.5% from last year and will make sure councils can improve local services, protect vulnerable people and build back better from the pandemic.

The final finance settlement also includes protecting taxpayers from excessive council tax rises, a new homes bonus, a lower-tier services grant, continued support for rural areas, business rates retention pilots and an uplift to the revenue support grant.

Further details, including allocations for individual councils and consultation document, can be found on the Final Local Government Finance Settlement page.