The Government has failed to explain how its pledge to ‘protect' councils from the £0.5bn cost of National Insurance increases will be funded.

According to figures from the Public Sector People Managers' Association, the rise from 13.8% to 15% in employers' National Insurance Contributions (NIC) from April, announced by chancellor Rachel Reeves in the Budget last week, is estimated to add £500m to the pay bill in direct costs.