Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the answer of 20 January 2026 to UIN 105608, if he will publish the evidence on the application of the Remoteness Adjustment in the Fair Funding Review.
Answered by Alison McGovern
The government will apply the remoteness adjustment to the Adult Social Care Formula, but not to formulas more broadly. The government recognised in the Fair Funding Review 2.0 the case in principle for the impact of a remoteness adjustment on costs.
The best evidence the government has heard in response to the consultation indicates remoteness may have a particular impact on adult social care services. Social care was also the area most frequently mentioned by respondents to the consultation in relation to the impact of remoteness.
On balance, taking into consideration the available evidence and the views of stakeholders, the government has made a judgement that remoteness should be accounted for when assessing the cost of delivering adult social care services.
The technical methodology annexes published at the provisional Settlement set out the Area Cost Adjustment's methodology and data sources - Provisional Local Government Finance Settlement 2026-2027 to 2028-2029 - GOV.UK.
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