Local Government: Reorganisation
The question
To ask the Secretary of State for Housing, Communities and Local Government, how much funding has been allocated to councils for local government restructuring over the Spending Review.
Answered by Alison McGovern
The 2025 Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. This includes £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.
We will publish the provisional Local Government Finance Settlement later this year, which will inform local authorities of their provisional multi-year allocations.
In addition, under the local government reorganisation programme, £7.6 million was made available in June, July and August in the form of proposal development contributions, split across the 21 areas that have been invited to submit proposals for unitary local government. This is the first time that such funding has been made available for the development of reorganisation proposals.
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