Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what estimate her Department has made of the number of local authorities receiving Exceptional Financial Support in the 2025-26 financial year.
Answered by Jim McMahon
The Government recognises the significant pressures that councils are facing. The Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. The £3.4 billion, when taken together with a 3% core council tax referendum principle and a 2% adult social care precept, results in an average overall real terms increase in local authority core spending power of 2.6% per year over the next multi-year settlement (2026-27 to 2028-29).
The government is committed to fixing the foundations of local government through ambitious reform. To support local authorities as we do so, we are inviting views through the Fair Funding Review 2.0 consultation on a package of transitional arrangements available over the multi-year Spending Review period.
Any council that has concerns about its ability to set or maintain a balanced budget should approach the department in the first instance. Details of any councils where additional support has been agreed will be published to GOV.UK in the usual manner.
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