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Local Government Finance Settlement
18 December 2024
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
TAGS
At a Glance
Issue Summary
The statement addresses the UK government's Local Government Finance Settlement for 2025-26, outlining measures to stabilise local government finances.
Action Requested
The minister announces over £700 million in additional grant funding, including £200 million to the Social Care Grant and £515 million for National Insurance Contributions. The final settlement will increase further with these allocations. A consultation on local authority funding reform is also opened, aiming to improve financial sustainability.
Key Facts
- Over £4 billion in additional funding for local government services announced.
- £2 billion total additional grant funding available through the Settlement.
- Social Care Grant increased by £880 million from 2024-25.
- National Insurance Contributions: £515 million allocated to English councils.
- Provisional Local Government Finance Settlement for 2025-26 is £69 billion, a 3.5% real terms increase.
- Consultation on local authority funding reform open until February 12, 2025.
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Assessment & feedback
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