Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what plans her Department has to increase clarity in the process of allocating funding to local areas through (a) consultation on their development and (b) publication of detailed methodology.
Answered by Jim McMahon
Building on the measures in the 2025-26 Local Government Finance Settlement, the Government is committed to introducing an improved and updated approach to funding local authorities from 2026-27.
We sought views on our principles and objectives for funding reform through a consultation which ran from 18 December 2024 - 12 February 2025. The government set out its six key guiding principles for funding reform, of which one is transparency.
This consultation and engagement will inform the development of our detailed proposals, on which we will further consult following the multi-year Spending Review concluding later this year. We will publish and seek views on methodologies as part of this consultation.
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