Local Government Finance: Rural Areas
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the oral contribution of the Minister for Local Government and English Devolution in response to the hon. Member for North Dorset during the Oral Statement of 16 December 2024 on English Devolution, Official Report, column 53, when her Department will commence a review into fair funding for rural councils.
Answered by Jim McMahon
The government is absolutely committed to tackling the issues that matter to rural communities.
We are committed to pursuing a comprehensive set of reforms for public services to fix the foundations of local government in partnership with the sector and on the principle of giving councils early certainty. As a core part of this plan, the government is committed to introducing an improved and updated approach to funding local authorities from 2026-27. We are inviting views on our principles and objectives for funding reform through a consultation (18 December – 12 February).
These reforms will build on the proposals set out in the previous government’s review of Relative Needs and Resources (also referred to as the ‘Fair Funding Review’), using the best available evidence to inform local authority funding allocations. We will move gradually towards an updated system and will invite views on possible transitional arrangements to determine how local authorities reach their new funding allocations.
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