House of Commons · Written Ministerial Statement
Local Government Finance
24 February 2025 · 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
- Local government finance settlement for 2025-26 announced
- Government provides 1 500 000 000 in-principle support to 30 councils
- Support comes with conditions to protect community assets and ensure value for taxpayers
Issue summary
The statement addresses the local government finance settlement for 2025-26, providing an update on funding allocations and exceptional financial support.
Action requested
The minister announces a £1.5 billion in-principle support to enable 30 councils to set balanced budgets, with conditions on protecting community assets and ensuring value for taxpayers' money. This is part of the government's commitment to rebuild and reform local government while prioritising residents’ needs.
Key facts
- The Local Government Finance Settlement provides over £69 billion in funding.
- There is a 6.8% cash terms increase in councils’ Core Spending Power compared to 2024-25.
- A new £600 million Recovery Grant has been introduced for areas with greater need and less ability to raise income locally.
- Exceptional Financial Support was provided to 30 councils, totaling around £1.5 billion.
- Six councils are supported via statutory intervention to recover from severe financial issues.