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Local Government Finance Settlement 2026-27 to 2028-29
09 February 2026
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
At a Glance
Issue Summary
The statement addresses the delivery and details of the multi-year Local Government Finance Settlement for 2026-27 to 2028-29.
Action Requested
The government is delivering a £5.6 billion funding package over three years, including an additional £740 million grant announced today. The statement also outlines reforms in children's social care and SEND deficits resolution, introduces the Local Outcomes Framework, and provides further details on council tax flexibility and homelessness support.
Key Facts
- The government is delivering a multi-year Settlement providing over £5.6 billion of new funding for local government services from 2026-27 to 2028-29.
- An additional £740 million in grant funding was announced today, including £440 million targeted at areas most impacted by historic cuts and £300 million uplift in Homelessness, Rough Sleeping and Domestic Abuse Grant.
- Core Spending Power will see a 15.5% increase by the end of the Settlement period, worth over £11.4 billion compared to 2025-26.
- SEND deficits accrued up to the end of 2025-26 will be resolved for 90% of local authorities in Autumn 2026.
- The Local Outcomes Framework outlines national priority outcomes driven by councils as leaders of place.
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Assessment & feedback
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