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Provisional Local Government Finance Settlement 2026-27

17 December 2025

Proposing MP
Birkenhead
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government

At a Glance

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.
Assessment & feedback
Summary accuracy