Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the adequacy of the ability of (a) county and (b) unitary councils to set balanced budgets for the next financial year.
Answered by Jim McMahon
We have delivered a Settlement for 2025-26 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 makes available over £69 billion for local government, which is a 6.8% cash terms increase in councils’ Core Spending Power on 2024-25.
Councils are responsible for managing their budgets locally and setting a balanced budget. Any council that has concerns about its ability to set or maintain a balanced budget should approach the Ministry in the first instance where we will treat all discussions in confidence, with respect and determination to find a solution together.
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