Ministry of Housing, Communities and Local Government: Public Expenditure
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the answer of 21 May 2026, to Question 194, on Ministry of Housing, Communities and Local Government: Public Finance, which existing programmes had adjustments to their treatment and funding profile; what the financial amount of each change was; and which years the funding was re-allocated to.
Answered by Alison McGovern
Some funding from within the department's overall budget allocation for local government remained unallocated at the time of the provisional settlement but was allocated at the final settlement. The other funding changes relate to the business rates retention system and are explained below.
£120 million per year related to the delivery of the reset of the business rates retention system which reallocated business rates funding, including grant paid in connection with the system, across local government. Funding was adjusted to reflect relevant values across the multi-year settlement period.
In addition to this, £65 million related to long-standing agreements where some local authorities swap grant allocations for an increased share of locally retained business rates. For 2026/27, this amount was used in the Settlement. This had no impact on the relevant local authorities who continue to hold a higher level of business rates.
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