Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will make an assessment of the potential merits of ensuring local government funding formulas reflect local (a) need and (b) funding levels.
Answered by Jim McMahon
We are making good on the previous government's commitment to improve and update the way in which local authorities are funded through “Fair Funding Review”. We will implement long-awaited reforms through a multi-year settlement in 2026-27, which will reflect an up-to-date assessment of need and local resources. We are inviting views on our principles and objectives for this reform through a consultation which closes on 12 February.
These changes are part of a comprehensive set of reforms for public services to fix the foundations of local government. This will be done in partnership with the sector and on the principle of giving forward notice and certainty to allow time for councils to plan for the future.
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