Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to (a) tackle local authority financial deficits and (b) improve local authority value for money.
Answered by Jim McMahon
This government recognises the pressures local authorities are facing because of their Dedicated School Grant (DSG) deficits. The Department for Education Spending Review settlement confirmed funding for reform of the current Special Education Needs and Disabilities (SEND) system, details of which will be set out in a White Paper in the autumn. The government will commence a phased transition process which will include an extension to the Dedicated Schools Grant Statutory Override, currently due to end in March 2026, until the end of 2027-28. The government will provide more detail by the end of the year including a plan for supporting local authorities with both historic and accruing deficits. We will set out more detail at the provisional Local Government Finance Settlement.
Furthermore, through this Spending Review we are providing an additional £3.4bn of grant funding for local authorities in 2028-29 compared to 2024-25 and the government has committed to reforms which will mitigate the growing pressures on Local Government services and achieve better value for money.
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