Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what consideration he has made of the potential merits of extending the Adjustment Support Grant in 2027/28.
Answered by Alison McGovern
On 9 February, the government published the first multi-year Local Government Finance Settlement in a decade. Following consultation feedback, the final Settlement included an update to how pooling gains are estimated for transitional arrangements. This was the right approach in order to distribute gains more equitably, improving how representative the assumption is of local arrangements.
To help councils adjust for this change, the government provided a one-off Adjustment Support Grant in 2026-27 to authorities who would otherwise see their Core Spending Power reduce in 2026-27, compared to indicative provisional Settlement allocations. The 2027-28 Settlement will be subject to consultation as is the usual process.
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