Local Government Finance: Disadvantaged
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will review the distribution criteria for the Recovery Grant to ensure access to that funding for (a) Essex and (b) other areas with pockets of severe deprivation.
Answered by Jim McMahon
We have announced £1.3 billion of new grant funding in 2025/26 for local government to deliver core services and will provide a real-terms increase in total core spending power of around 3.2%.The Recovery Grant will be allocated to places where, weighted by population, deprivation outweighs council tax raising ability. The grant is intended to be highly targeted, meaning that not all authorities will receive an allocation. We understand this decision will feel hard for some local councils which fall outside the line, but this grant must be considered in the wider context.
The government will set out the provisional allocations at the provisional Local Government Finance Settlement 2025-26 in the usual way towards the end of the calendar year. The government is clear that the Recovery Grant is not full reform and is committed to pursuing a comprehensive set of reforms for public services through a multi-year settlement from 2026-27.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →