Local Government Finance: Shropshire
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will reinstate the four percent funding floor for Core Spending Power growth for Shropshire.
Answered by Jim McMahon
The current fiscal environment means the government cannot continue the poor value for money 4% Funding Guarantee. The government assesses that it does not use every pound of taxpayers' money most efficiently and that is it targeted on a transparent basis.
However, we will guarantee that no local authority sees a reduction in their Core Spending Power in 2025-26, after taking into account the increase in council tax levels, by applying a funding floor.
This will provide the protections required for authorities to sustain their services between years, whilst recognising that we must begin the process of redirecting as much funding as possible towards the services and places that need it most.
The government is making good on the promise to reform the local government funding system, and 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).
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