House of Commons · Written Ministerial Statement
Local Government Finance
23 February 2026 · 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 minister is addressing reforms to the Local Government Finance Settlement focusing on funding distribution based on need.
- The government has announced a multi-year settlement increasing funding for deprived areas by 45% per head compared to non-deprived areas by 2028-29.
- The minister confirms in principle support for councils facing difficult positions, aiming to transform services towards sustainability.
Issue summary
The minister is addressing reforms to the Local Government Finance Settlement, focusing on funding distribution based on need and financial risk management.
Action requested
The government has announced a multi-year settlement that will increase funding for deprived areas by 45% per head compared to non-deprived areas by 2028-29. Additionally, the minister is confirming in principle support for councils facing difficult positions, aiming to transform services towards sustainability.
Key facts
- The multi-year Local Government Finance Settlement delivers 45% more funding per head to deprived places by 2028-29.
- Nine out of ten councils will receive funding that matches their assessed need by 2028-29, up from only around a third previously.
- Between 2016/17 and 2018/19, councils spent an estimated £6.6 billion on acquiring commercial property, a fourteen-fold increase compared to the preceding three years.