House of Commons · Written Ministerial Statement
Local Government Finance Settlement
18 December 2024 · Ministry of Housing, Communities and Local Government
Proposed by Jim McMahon Lab Co-op Oldham West, Chadderton and Royton
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The UK government announces over 700 million in additional grant funding for the Local Government Finance Settlement for 2025-26.
- The Social Care Grant receives 200 million, while 515 million is allocated towards National Insurance Contributions.
- A consultation on local authority funding reform is opened to enhance financial sustainability.
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.