Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to help ensure that councils are financially stable.
Answered by Alex Norris
We have delivered a Settlement that begins to fix the foundations of local government by providing significant investment, redirecting funding towards the services and places that need it most. The Settlement for 2025-26 makes available over £69 billion for local government, which is a 6.8% cash terms increase in councils’ Core Spending Power on 2024-25.
The government is committed to pursuing a comprehensive set of reforms for public services to return the local government sector to a sustainable position. This will be done in partnership with local government and on the principle of giving forward notice and certainty to allow time for councils to plan. From 2026-27, we want to fundamentally improve the way we fund councils and direct funding to where it is most needed through the first multi-year settlement in 10 years.
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