Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the press release entitled Fairer funding for councils across the country in major reform, published on 20 June 2025, what steps he is taking to ensure the effectiveness of the formula used by his Department to calculate levels of funding based on rural deprivation.
Answered by Alison McGovern
This government is absolutely committed to tackling the issues that matter to rural communities. The Fair Funding Review 2.0 ran from 20 June to 15 August 2025, and proposed reforming the local government funding system.
The updated assessment which was consulted on more effectively captures variations in demand for services within a local authority. It also proposed to continue to apply Area Cost Adjustments to account for the different costs faced in delivering services, including in rural and urban areas. We will ensure our approach is informed by the latest data and evidence.
We are currently considering responses to the consultation and will publish our response in the autumn.
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