House of Commons · Written Ministerial Statement
Local Government Finance Settlement 2025-26
03 February 2025 · Ministry of Housing, Communities and Local Government
Proposed by Angela Rayner Lab Ashton-under-Lyne
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government is confirming a 69 billion funding settlement for councils in England for 2025 to 2026.
- The funding includes a 6.8% increase from the previous year and additional grants for social care, homelessness support, and infrastructure.
- New measures are introduced to address local governance reforms and devolution.
Issue summary
The statement discusses the Local Government Finance Settlement for 2025 to 2026 in England, outlining funding allocations and reforms.
Action requested
The government is confirming a £69 billion funding settlement for councils in England, with an increase of 6.8% from the previous year. It includes additional grants and investments in social care services, homelessness support, and infrastructure improvements. The statement also introduces new measures to address local governance reforms and devolution.
Key facts
- £69 billion funding settlement for councils.
- Funding increased by 6.8% compared to 2024 to 2025.
- New Children’s Social Care Prevention Grant of £270 million.
- Additional homelessness services funding of £233 million.
- Pothole funding of £500 million.
- Recovery Grant of £600 million introduced.
- Internal Drainage Board Levy Support Grant uplifted by £2 million to £5 million.
- Council tax increase principles remain at 5%.
- Bespoke additional council tax referendum principles for six councils: Windsor and Maidenhead (+4%), Birmingham City Council (+2.5%), Bradford Council (+5%), Newham Council (+4%), Somerset Council (+2.5%), Trafford Council (+2.5%).
- New Homes Bonus to be phased out in its current format by 2025.