Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, if she will take steps to ensure the provision of adequate funding for demand-led local government services in the next spending review.
Answered by Jim McMahon
We recognise the challenges that local authorities are facing as demand increases for critical services. Funding allocations from future settlements are subject to the outcome of future Spending Reviews.
The final Settlement for 2025-26 therefore makes available over £69 billion for local government, which is a 6.8% cash terms increase in councils’ Core Spending Power on 2024-25.
We are also taking immediate action to begin addressing the significant challenges facing local government by ensuring that funding goes to the places that need it most in 2025-26.
The Ministry works closely with local government and other government departments to understand specific demand and cost pressures facing local government on an ongoing basis.
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