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Local Government Finance

Asked by Sir James CleverlyConservativeMinistry of Housing, Communities and Local GovernmentTabled Answered 16 June 2026UIN 7448

The question

To ask the Secretary of State for Housing, Communities and Local Government, whether his Department has made an estimate of how many local authorities in England have a reduction in core spending power in real terms in 2026-27, relative to 2025-26.

Answered by Alison McGovern

Core Spending Power for local authorities in England is set out in published data here, which includes the change in core spending power over the multi-year settlement period.

The final 2026-27 Local Government Finance Settlement makes available £78 billion in Core Spending Power for local authorities in England in 2026-27, a 6.1% increase compared to 2025-26.

The vast majority of councils with social care responsibilities will see their Core Spending Power increase in real terms over the multi-year Settlement. As a result of the fair funding review reforms, nine in ten councils will receive funding that broadly matches their assessed need by the end of the multi-year Settlement, up from around a third before our reforms.

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