Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether the Fair Funding Review will ensure that the most deprived areas of the country will receive the biggest increases in funding.
Answered by Alison McGovern
The government published the local government finance policy statement Local government finance policy statement 2026-27 to 2028-29 - GOV.UK and government response to the Fair Funding Review 2.0 on Thursday 20 November which set out the government’s plans to introduce a fairer and evidence-led system, that will realign funding with need and deprivation.
The government has used the most robust and up to date evidence available. On this basis, we are now using data from the recently published 2025 Indices of Multiple Deprivation in our assessment of need.
We expect that by 2028-29, the top 10% most deprived authorities will see a significant increase in their Core Spending Power per head, compared to the least deprived.
We will publish provisional local authority allocations at the upcoming provisional multi-year Settlement in December. Proposals and allocations will be subject to consultation and the usual Parliamentary process.
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