Commons Sense

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Local Government Finance

23 February 2026

Proposing MP
Alison McGovern Lab
Birkenhead
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
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At a Glance

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.
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