Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what recent steps his Department has taken to help ensure that local authorities under financial constraints prioritise essential services.
Answered by Alison McGovern
We are investing in local government. The government will provide over £5.6 billion of new grant funding towards local government services over the next three years. By the end of the multi-year Settlement (2028-29), the government will have provided a 15.5% increase in Core Spending Power for local authorities in England, worth over £11.4 billion, compared to 2025-26. The government has also announced £4 billion investment over three years for new programmes to deliver improvements in SEND.
The government is introducing a fairer and evidence-based funding system. Our reforms ensure that this funding is allocated fairly, and that the places and services that need it most are supported. We are supporting all authorities to maintain services and manage their updated funding positions with transitional arrangements.
The government recognises that some councils remain in a challenging financial position as they continue to deal with the legacy of the previous system. Any council that has concerns about its financial sustainability should approach the department in the first instance where we will treat all discussions in confidence
The majority of funding in the Local Government Finance Settlement is unringfenced recognising that local leaders are best placed to identify local priorities.
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