Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether his Department plans to provide additional support to councils that receive less funding after the fair funding formula is implemented.
Answered by Alison McGovern
By the end of the multi-year Settlement, we will have made available a 15.1% increase in Core Spending Power for councils in England, worth over £11 billion, compared to 2025-26. The vast majority of social care authorities will see a real terms increase across over the multi-year Settlement.
The government agrees with respondents to the December consultation and Fair Funding Review 2.0 that implementing funding reform in full in 2026-27 without transitional arrangements would be the wrong approach. We will support local authorities to manage their updated funding positions by introducing changes over the multi-year Settlement and protecting councils’ income, including locally retained business rates growth.
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