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Local Government Finance Settlement

18 December 2024

Proposing MP
Jim McMahon Lab Co-op
Oldham West, Chadderton and Royton
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government

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.
Assessment & feedback
Summary accuracy