Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to paragraph 4.63 of the Autumn Budget 2024, HC 295, published on 30 October 2024, what methodology her Department plans to use to allocate the £1.3 billion of grant funding for local government; and what steps her Department plans to take to assess the needs of rural areas.
Answered by Jim McMahon
We will be publishing a policy statement in late November, where we will set out our intentions for the provisional Local Government Finance Settlement 2025-26, including the £1.3 billion of grant funding for local government announced at the Budget, in addition to future reform of the local government finance system.
In 2025-26 we will take a deprivation-based approach with additional funding targeted to the places that need it most. Broader redistribution of funding will follow through a multi-year settlement from 2026-27.
After years of delaying much needed fair funding reform, we will update and improve the approach to funding allocations within the Local Government Finance Settlement to ensure that it reflects an up-to-date assessment of need and local resources. We want to hear from a range of voices to ensure any conclusions the review reaches are both fair and justified.
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