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Local Government Finance
24 February 2025
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
At a Glance
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.
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Assessment & feedback
Summary accuracy