Local Government Finance: Disadvantaged
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the answer of 20 April 2026 to Question 124738 on Local Government Finance: Disadvantage, whether councils which reduce the level of deprivation in their locality will receive reduced central government funding.
Answered by Alison McGovern
Through the Fair Funding Review 2.0 the government has delivered on its commitment to a fairer, evidence-based system that targets funding towards areas with high deprivation and need.
We know deprivation is a factor that drives the level of spending on children’s social care services, as well as for many non-social care services. However, the use of deprivation data within our formulas does not solely determine whether an authority’s funding will increase or reduce. We also recognise the different drivers of demand for services, the cost of providing them in different places and differing ability to raise council tax.
The Government understands the importance of long-term financial planning and has delivered the first multi-year Settlement in a decade. Between now and the end of the multi-year Settlement, there will be another Spending Review which will determine arrangements for 2029-30 and beyond.
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