House of Commons · Written Ministerial Statement
Provisional Local Government Finance Settlement 2026-27
17 December 2025 · Ministry of Housing, Communities and Local Government
Proposed by Alison McGovern Lab Birkenhead
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government is announcing a multi-year finance settlement with increased funding and reforms for local services in deprived areas.
- The settlement includes 5 billion in new grant funding over three years.
- The Core Spending Power will increase to 84.6 billion by 2028-29.
Issue summary
The statement addresses the provisional Local Government Finance Settlement for 2026-27, focusing on fair funding reforms to address the impact of austerity on deprived areas.
Action requested
The government is announcing a multi-year finance settlement with increased funding and reforms aimed at improving local services in deprived areas. This includes £5 billion in new grant funding over three years, an increase in Core Spending Power to £84.6 billion by 2028-29, and a Fair Funding Review 2.0 to ensure fairer distribution of funds.
Key facts
- Over £77.7 billion available in Core Spending Power for local authorities in England for 2026-27.
- A 15.1% increase compared to 2025-26, reaching over £84.6 billion by 2028-29.
- The Fair Funding Review 2.0 aims to create a fairer, evidence-led system.
- Over £5 billion of new grant funding announced for local services over the multi-year period.
- A National Care Service with around £4.6 billion additional funding made available for adult social care in 2028-29 compared to 2025-26.