Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 23 June 2025 to Question 60129 on Local Government Finance, whether the LG DEL figures of (a) £15.0bn in 2025-26, (b) £15.4bn in 2026-27, (c) £15.6bn in 2027-28 and (d) £15.8bn in 2028-29 set out in Table 5.17 of CP1336 were used as the evidential basis for the core spending power calculations in the Spending Review 2025.
Answered by Jim McMahon
The Core Spending Power (CSP) figures in Table 5.17 of the Spending Review document do contain the uplift from the LG Resource DEL figures, although not all of LG DEL is distributed through CSP. However, the CSP figures also contain estimations for Council Tax revenue which reflect the referendum principles announced at the Spending Review. They also contain an adjustment reflecting the impact of MHCLG retaining grant funding from 2026-27 onwards that has been surrendered in previous years to offset the impacts of additional business rates retained in Greater Manchester and the West Midlands, as outlined in footnote four of the table as well.
There is £3.4 billion of new grant funding which will be delivered through the Local Government Finance Settlement within financial years 2026-27 to 2028-29, and individual local authority CSP figures will be confirmed at settlement in the usual way.
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