Local Government Finance

Suggests discussing the Referendums Relating to Council Tax Increases Report alongside the Local Government Finance Report.

Thanks the government for Pride in Place funding, questions why new burdens funding is not supported by the current administration. Highlights that Wyre Forest district council has had a 0% increase in core funding.

Raises concern over a 10% cut in core funding for Shropshire, questions how the area will fill the financial black hole with the given council tax increase allowance.

Appreciates readjusting the settlement to reflect need and seeks further details on this work.

Critiques the Tories for the biggest cuts under austerity from 2010-2015 when they were in coalition with Lib Dems, suggesting shared blame.

Expresses gratitude to the Secretary of State and Ministers for engagement leading to a constructive conversation that resulted in a funding settlement for St Helens. Criticises Conservative Members for cuts from 2010.

Questions the fairness of Pride in Place funding being diluted by more affluent areas, highlighting Stanwell as an example. Asks if rurality should be reinstated under need considerations.

Expresses gratitude for the settlement received in Redbridge and Waltham Forest, but questions how the Government will act to expand supply of socially rented homes given rising temporary accommodation costs.

Acknowledges local government's importance in UK communities but criticises the funding statement for shifting funds away from statutory duties towards generalised poverty drivers. Highlights a £2.7 billion black hole affecting rural areas.

Acknowledges that Labour abolished the rural services delivery grant, which has cost Somerset council £4.1 million and other rural counties millions more.

Inquired about the Conservative party's failure to honour its promise of freezing council tax in Harrow, noting a 20% increase over four years.

Contributed an intervention regarding local government funding and the impact on constituents' cost of living.

Asked the Conservative Member to recall that council tax's share of local government funding increased under their leadership from 20% in 2010 to over half today.

Corrected a record regarding the Conservatives cancelling the building schools for the future programme initiated by Labour.

Noted that under the previous Tory Government, Hillingdon constituents faced a 7% cut in core spending power compared to a nearly 40% increase under current conditions.

Expressed concern over the lack of direction regarding how funding will work out for rural communities in the context of local government reorganisation.

The Conservative MP emphasised the role of the Liberal Democrats during austerity and suggested they were responsible for significant cuts in government spending, highlighting a specific instance where Chief Secretary Danny Alexander was pushed to make deeper cuts by George Osborne.

Asked the Labour MP if people who promise not to raise council tax should indeed follow through with their promises, implying that the Conservative leadership in Harrow broke such a pledge.

Supported his colleague's argument by pointing out that some local authorities are doing well and building new council houses to address housing issues. He suggested that Reading borough could serve as an example for Harrow in improving local services.

Agreed with the concerns raised about management practices in Harrow, citing similar issues in Hillingdon. The independent auditors are critical of budgeting approaches that led to misallocations and a lack of financial oversight.

The Liberal Democrats support multi-year settlements for local government, freeing councils to generate more revenue through council tax on second homes and increased planning fees. They also advocate for an extra £2 billion on education, particularly for special educational needs and disabilities (SEND). The announcement that 90% of SEND service debts will be met by central Government is welcomed but seen as insufficient. Further reforms must maintain children’s rights to assessments and support, increase capacity in state special school provision, top up funding for over-provisioned children, cap profits made by private sector SEND companies, improve early intervention, and incentivise schools to accept SEND pupils and train staff. Additional funds for housing and homelessness are welcome but inadequate compared to the level of need. Somerset council will keep the council tax rise to 4.99%, which is the norm across the country. The settlement leaves too many questions unanswered regarding how SEND costs will be met, results in cuts for rural and remote authorities, and social care remains a significant issue due to the demographic deficit. Further, there are concerns about the expense of top-down reorganisation of local government structures that people do not want.

Intervened to point out that Oxfordshire county council faces a £24 million deficit as a result of the settlement, highlighting residents' concerns about potholes. She agrees with her colleague's emphasis on tackling social care issues, which are central to local government finance.

Intervened to note that Torbay council faces a £13 million deficit in years 2 and 3 due to incredible assumptions about the levels of council tax being collected. He agrees with his colleague's criticism of Labour learning from Conservatives to balance budgets on the backs of local taxpayers.

Intervened to remind that the coalition Government made the biggest cuts to local government funding and started passing responsibilities to the council tax system. He challenges the Liberal Democrats to apologise for their actions when they were in government.

Asked whether Gideon Amos agrees with the Labour leader of Sheffield council's statement about cost pressures outstripping increases in funding for care, accommodation, construction, housing, and care.

The settlement covers 90% of debt for children with special educational needs and disabilities (SEND). Florence acknowledges the government's efforts but calls for continued support on SEND in the schools White Paper. She emphasises the need for certainty from the Government regarding long-term funding, highlighting years of under-investment. The reduction in grants is welcomed as it reduces unnecessary administrative burdens on cash-strapped councils. However, she raises concerns about exceptional financial support (EFS) and its impact on council finances. Florence advocates for a review to ensure proper allocation of EFS funds. She also discusses the reliance on regressive forms of taxation like Council Tax and calls for reform in this area. The speech concludes with an appeal for boldness from the government to address mandatory costs such as SEND, adult social care, and temporary accommodation.

Questions whether the Government’s support package is appropriate, especially concerning Woking borough council's situation which effectively went bankrupt due to mismanagement. He suggests that allowing councils to borrow more money to pay off government loans may not be a sustainable solution and demands an immediate change in the exceptional financial support process.

Raises concerns about the increase in council tax by 9% despite promises made by Reform candidates to cut it. Criticises the removal of referendum for budget increases above 5%, highlighting a lack of democratic process.

Highlights the disparity in council tax payments based on property valuation, suggesting that this system is unfair. He criticises what he perceives as an imbalance with London-based decision-makers.

Welcomes the work being done to ensure fairer funding, particularly for deprived local authorities like Sandwell which is set to receive extra £28 million as a result of the recovery grant. She appreciates the efforts of the Local Government Minister and Treasury in implementing this.

The Government's funding settlement does not recognise the needs of large rural counties like Norfolk, which face significant cost pressures. The removal of the rural services delivery grant and the lack of support for internal drainage boards further exacerbates this issue.

Asked about addressing deprivation, housing costs, and temporary accommodation in outer-London boroughs which face inner-London problems despite not being leafy areas.

Requested to intervene but did not provide a statement within the given text.

Declared an interest as a Central Bedfordshire councillor, agreeing with the hon. Member's point that the Government's funding formula is nothing short of pork barrel politics, leading to Central Bedfordshire having to find £17 million off the back of this settlement.

Life in my constituency is tough for many families due to poverty, ill health, and insecurity. Healthy life expectancy in Knowsley and St Helens is shockingly low at 50 and 57 respectively. The council faces significant healthcare support challenges, and housing and social care are integrated but struggling with increasing demand. Many children lack access to educational opportunities and face risks such as drug taking and county lines exploitation. Revenue support grants have been complex and austerity measures have led to substantial funding losses for local councils. St Helens borough council lost £127 million due to austerity, leading to a significant financial strain. Two-thirds of the council's budget is spent on adult social care and children’s services, highlighting the need for better funding. The proposed settlement does not adequately address the real pressures on health and disability provision, leaving many in vulnerable situations without proper support.

Welcomes the move to a multi-year settlement but expresses concern over the sustainability of local government funding. Criticises the impact on rural areas and highlights the challenges faced by Stratford-on-Avon district council due to potential budget cuts. Emphasises the importance of recognising the specific costs associated with delivering services in sparsely populated regions. Provides examples of initiatives undertaken by her constituency, contrasting them with the perceived chaos at Warwickshire county council under Reform leadership.

I congratulate the Secretary of State and Minister for Local Government on the settlement, which is a welcome change after years of austerity. The Public Accounts Committee's report highlights that local government funding has not kept pace with demand. Councils have been delivering efficiencies while central government departments lag behind. This multi-year settlement offers councils certainty to plan ahead. While it is subjective what constitutes fair funding, the review promised by Greg Clark in 2014 remains unfulfilled. The new settlement addresses deprivation by providing significant increases to councils that faced severe cuts previously. However, there's a risk of a cliff edge when the recovery grant expires in 2029. Sheffield has received additional funds and can now balance its budget without cutting essential services for the first time since austerity began. Councils are concerned about ringfencing constraints across various sectors like transport, health, and education. This settlement is a step towards fairness but requires further radical change to address social care funding and other critical issues. The current council tax system, based on valuations from 1991, is regressive and unsustainable. We need fundamental reform for local government finance.

Thanking the Secretary of State and his team for their responsiveness, he argues that it's rare for Tory Secretaries to listen or act on representations. He asserts that this situation is a result of underfunding by the previous Conservative government over 14 years.

Joining colleagues in thanking the Secretary of State and Minister for their work, she notes that Croydon East has some of the highest deprivation rates despite being treated as wealthy. She agrees that this funding formula is crucial to ending Tory austerity.

He raises concerns about the removal of the remoteness uplift, arguing it's contrary to common sense and disproportionately affects remote rural authorities. He calls for a cross-party approach to address this issue.

He points out that councils with Labour constituencies benefit more from the settlement compared to those represented by Conservative MPs, questioning the fairness of the distribution.

Acknowledging a bankrupt Tory council in his constituency, he praises this Government for funding based on deprivation regardless of political affiliation.

Highlighting that 70% of Hartlepool's spending is on social care and the high council tax burden compared to affluent areas, he calls for abolishing the current regressive system.

Critiques the Government and Reform party for breaking promises regarding council tax, citing a 9% increase in Worcestershire county council as an example. Emphasises that the promise to freeze council tax was made by Labour before the general election but not delivered upon. Mentions the DOGE programme's failure to deliver promised cuts and highlights a £100 million overspend by Reform administration leading to emergency funding requests from the Government. Urges for adherence to political promises or abstaining from making them, stressing the importance of trust in politics. Points out that over 1,100 Worcestershire residents have signed a petition opposing the increase and calls for a referendum.

Asked to give way by his colleague but did not provide additional statements in this snippet.

Supports the points raised about broken promises regarding council tax and highlights a successful example of Wychavon district council under Conservative leadership, which froze council tax for five years without cutting services, demonstrating financial resilience.

I am concerned about the fair funding settlement for Hartlepool and its impact on children's social care. We have high numbers of children in need due to pressures from other local authorities, yet our funding increase is insufficient compared to wealthier areas. This undermines preventive measures and could lead to higher long-term costs and worse outcomes.

I correct my earlier statement about Labour's manifesto not promising a council tax freeze, but it highlights the importance of politicians standing by their promises for trust in politics. However, I agree with concerns over fair funding settlements and the issues faced by local authorities like Hartlepool.

I support my colleague's point about Blackpool and other northern councils facing similar issues due to wealthier areas exporting their children-in-care problems. Restricting how far councils can move these children might help address this issue.

I endorse the concerns raised by my colleague and agree that abysmal outcomes for children should be a priority. We need to prevent councils from having to pick up the tab for these situations and ensure families are supported locally.

I echo my colleague's concerns about inner London boroughs dumping their children-in-care problems in areas with slightly cheaper housing. This leads to families losing connections, jobs and stability, impacting children's life chances.

The settlement is unfair and a disaster for Wokingham, which already faces significant funding challenges. The Liberal Democrat-run council has struggled with rising adult social care costs while trying to balance the books. For 2025-26, Wokingham allocated 39% of its budget to adult social care and 25% to children’s services, leaving little room for financial planning due to lack of information on SEND (Special Educational Needs and Disability) costs until 2028. Clive Jones urges the Government to provide a clear timeline for resolving existing deficits and requests a fully funded long-term plan for adult social care reform.

Welcomes the Labour Government’s approach of investing more in local councils based on need and deprivation, marking an important change from previous Tory and coalition Governments that left areas like Knowsley underfunded and stretched. Anneliese Midgley thanks the Secretary of State for listening to her council's representations and improving the funding settlement for Knowsley. She emphasises the need for better public services, children’s services, and adult social care in a community still facing real pressures after years of austerity. Praises the persistent efforts of Councillor Graham Morgan and metro mayor Steve Rotheram in securing a fairer settlement for their region.

Stuart argued that the Government's local government finance settlement will result in higher council tax bills, exacerbating financial pressure on families. He cited specific examples of constituents facing hardships such as food insecurity and rising energy costs. The MP also criticised the Government for failing to properly fund social care and leading to a patchwork of repairs in his constituency.

Brash questioned Stuart about the introduction of core spending power by the previous Conservative Administration, expressing irritation at its use. He also emphasised the disproportionate burden on low-income families due to council tax and called for a more equitable system.

Rimmer highlighted the loss of support grant funding under Conservative rule, leading to significant financial strain on local councils. She stressed the need for funds to be sourced from those with broader shoulders rather than disproportionately affecting low-income individuals.

I was first elected in 2008 and have spent over a decade in local government. I emphasise the importance of local councils and their work, especially during the pandemic. However, constant budget cuts under Conservative leadership weakened resilience and eroded essential services such as children’s centres, disabled support, and youth services. In rural areas like South West Norfolk, there are additional challenges due to high costs in social care, planning, and housing. Hidden deprivation is also an issue with low wages, poor health, and limited education. Internal drainage boards (IDBs) provide crucial infrastructure but face financial pressures from rising electricity costs.

I acknowledge the Government's action on SEND deficits and their commitment to centralising spending, but I am concerned about the clarity of future policies regarding EHCPs. The evidential basis for parts of the settlement is questionable, with councils facing potential funding uncertainties due to miscalculations in business rate valuations. Rural areas face significant cost drivers such as longer travel times and higher transport costs, yet they receive significantly lower per-head funding increases compared to metropolitan areas. I argue that remoteness should be consistently recognised across all service delivery to reflect the reality of rural challenges.

The final settlement for local government finance does not bring good news for Devon, with urban councils receiving a significantly higher increase in Government-funded spending power compared to rural areas. Wages are lower in the rural economy, yet council tax payers face high rates. Dalwood village exemplifies poor road conditions and car repair costs despite high taxes. The £7.3 billion allocated for road maintenance is insufficient for Devon’s needs with a repair backlog of £384 million but only receiving about £60 million annually. The remoteness uplift, which recognises higher costs in rural areas, has been removed from most area cost adjustments.

The Prime Minister's promise of no tax rises on working people is contradicted by the settlement leading to significant council tax increases. There are opportunities for tweaks and changes in the reports, but councils remain short of funds needed to meet statutory duties. The recovery grant does not address broader issues, and housing delivery is collapsing despite ambitious targets. National insurance contributions and business rates rises add pressure on local authorities, along with additional £750 million costs from emissions trading scheme changes. The announced funding for special educational needs deficits will be subject to a bidding process, differing from existing safety valve agreements reducing SEND deficits.

The Labour MP closed the debate by acknowledging her chronic migraine and apologised for a potentially shorter speech. She praised councillors, frontline staff, and mayors for their hard work but criticised the unfairness of the funding system under austerity measures. McGovern emphasised restoring the link between deprivation and funding to support deprived communities and announced a nearly 25% increase in core spending power worth £16.6 billion. She also thanked Members who contributed to the consultation on the provisional settlement and expressed her commitment to further action in future years.