Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to make any changes to the existing bespoke distribution method for the Recovery Grant.
Answered by Alison McGovern
The local government finance settlement for 2024 to 2025 introduced the Recovery Grant, worth £600 million. This was distributed to places with greater need and demand for services (using deprivation as a proxy), and which are least able to fund their own services locally.
The grant laid the foundations for funding reform, ahead of our commitment to bringing forward the Fair Funding Review 2.0 from 2026-27.
We consulted on the Fair Funding Review 2.0 over the summer, and we will confirm final details of our proposals through a comprehensive policy statement later in the autumn, followed by a consultation for the provisional local government finance settlement, as usual, later in the year.
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