The Ministry of Housing, Communities and Local Government is central to the mission-driven government, from fixing the foundations of an affordable home to handing power back to communities and rebuilding local governments.
As Government seeks to reform local government finance, this inquiry will consider whether the local government finance system is fit …
Oral Answers to Questions is a regularly scheduled appearance where the Secretary of State and junior minister will answer at the Dispatch Box questions from backbench MPs
Other Commons Chamber appearances can be:Westminster Hall debates are performed in response to backbench MPs or e-petitions asking for a Minister to address a detailed issue
Written Statements are made when a current event is not sufficiently significant to require an Oral Statement, but the House is required to be informed.
Ministry of Housing, Communities and Local Government does not have Bills currently before Parliament
Ministry of Housing, Communities and Local Government has not passed any Acts during the 2024 Parliament
e-Petitions are administered by Parliament and allow members of the public to express support for a particular issue.
If an e-petition reaches 10,000 signatures the Government will issue a written response.
If an e-petition reaches 100,000 signatures the petition becomes eligible for a Parliamentary debate (usually Monday 4.30pm in Westminster Hall).
Commons Select Committees are a formally established cross-party group of backbench MPs tasked with holding a Government department to account.
At any time there will be number of ongoing investigations into the work of the Department, or issues which fall within the oversight of the Department. Witnesses can be summoned from within the Government and outside to assist in these inquiries.
Select Committee findings are reported to the Commons, printed, and published on the Parliament website. The government then usually has 60 days to reply to the committee's recommendations.
The government is clear that social landlords should seek to sustain tenancies and should only evict as a last resort.
Landlords will, when managing their social housing schemes, provide advice and assistance to those struggling financially, including signposting to support services.
The Pre-Action Protocol for Possession Claims by Social Landlords sets out the actions social landlords should take to support the tenant before they consider taking legal action for rent arrears. These actions include making early contact with tenants to discuss the cause of the arrears, checking eligibility for housing benefit, assisting with any claim, and agreeing affordable repayment terms for the arrears. The protocol can be found on the justice website here.
The government’s proposals for local government reorganisation will not change the planning responsibilities held by the South Downs Park Authority or any other national park. National Park authorities will remain the local planning authority for their areas.
The Energy Performance of Buildings Regulations 2012 place a duty on accreditation schemes to ensure that Energy Performance Certificates (EPCs) are produced in a consistent and accurate manner and the energy assessors are suitably qualified and experienced to carry out their duties. Government regularly audits accreditation schemes to assess whether they are fulfilling their duties and takes action to address any issues found.
We received proposals from a number of local authorities on 10 January expressing interest in joining the Devolution Priority Programme. We are reviewing these at pace, and we hope to announce places on the Programme in the coming weeks.
We are providing a significant boost to local authorities in England. Taken together, the additional funding announced by the Chancellor at the Autumn Budget and at the 2025-26 provisional Local Government Finance Settlement will provide over £5 billion of new funding for local services over and above local council tax. This includes an additional £2 billion of grant through the Settlement in addition to a guarantee that local authorities in England will receive at least £1.1 billion in total in 2025-26 from the new Extended Producer Responsibility for packaging (pEPR) scheme, and a further £233 million of additional funding for homelessness services.
The provisional Settlement for 2025-26 makes available £69 billion for local government, which is a 3.5% real terms increase in councils’ Core Spending Power on 2024-25. The final Settlement will increase further, to incorporate the £515 million of funding announced for National Insurance Contributions.
The Department works closely with local government and other government departments to understand specific demand and cost pressures facing local government on an ongoing basis. This involves looking at a range of cost and demand data, as well as regular engagement with local authorities.
The Government does not issue guidance on political finance matters. The Electoral Commission, as the independent body responsible for regulating political finance, has a statutory duty to provide guidance on donations.
In the Labour manifesto we committed to developing an ambitious strategy to reduce child Poverty. I am part of the ministerial Child Poverty Taskforce which has since been established to drive this forward, aiming to publish a Child Poverty Strategy in Spring 2025. On 23 October we published our framework ‘Tackling Child Poverty: Developing Our Strategy’ and are exploring all available levers to drive forward short and long-term actions across government to reduce child poverty. Local authorities are key partners in tackling child poverty and we will continue to engage with them to ensure the Strategy supports and enables shared solutions.
Eligibility for social housing and statutory homelessness assistance are both determined by immigration status. If a person’s visa means that they cannot access state benefits or local authority housing assistance, they will not be eligible for statutory homelessness assistance, and therefore unable to obtain temporary or permanent accommodation.
As the eligibility rules for social housing and homelessness assistance are the same, an applicant who is not eligible for social housing will almost always also not be eligible for homelessness assistance. A small number of EU nationals with pre-settled status (PSS) may be able to access statutory homelessness assistance in a very specific set of circumstances should a ‘not eligible’ decision lead to a breach of their right to dignity under Article 1 of the EU Charter of Fundamental Rights which has direct effect as a result of the Court of Appeal ruling in SSWP v AT.
Eligibility for social housing and statutory homelessness assistance are both determined by immigration status. If a person’s visa means that they cannot access state benefits or local authority housing assistance, they will not be eligible for statutory homelessness assistance, and therefore unable to obtain temporary or permanent accommodation.
As the eligibility rules for social housing and homelessness assistance are the same, an applicant who is not eligible for social housing will almost always also not be eligible for homelessness assistance. A small number of EU nationals with pre-settled status (PSS) may be able to access statutory homelessness assistance in a very specific set of circumstances should a ‘not eligible’ decision lead to a breach of their right to dignity under Article 1 of the EU Charter of Fundamental Rights which has direct effect as a result of the Court of Appeal ruling in SSWP v AT.
Building owners are responsible for ensuring that buildings have appropriate buildings insurance in place.
The government encourages insurance companies to provide suitable, fairly-priced insurance for all blocks of flats, whatever the conclusion of the Fire Risk Appraisal of External Walls.
Insurers make commercial decisions about the price and terms of cover they offer following their assessment of the relevant risks. Government is determined that insurance companies treat customers fairly and the Financial Conduct Authority (FCA) requires firms to ensure their products offer fair value. The FCA has been clear it will be monitoring firms and, where necessary, it will take action.
My officials would be happy to speak to the insurance industry about any building brought to our attention, which is unable to obtain any buildings insurance cover.
For buildings that do require remediation, the Fire Safety Reinsurance Facility, led by the Association of British Insurers (ABI) and reinsurance broker McGill and Partners, may reduce high premiums for some of the most affected multi-occupancy buildings with fire safety issues.
The government has not set an affordable housing target to date, but we are committed to delivering the biggest increase in social and affordable housebuilding in a generation.
With regard to grant funded affordable housing, the government will set out details of new investment to succeed the 2021-26 Affordable Homes Programme at the Spending Review. This new investment will deliver a mix of homes for sub-market rent and homeownership, with a particular focus on delivering homes for Social Rent.
In addition, the provision of affordable homes will be supported by our ‘Golden Rules’ for Green Belt development. Prior to development plan policies for affordable housing being updated in accordance with the revised NPPF, the affordable housing contribution required to satisfy the ‘Golden Rules’ is 15 percentage points above the highest existing affordable housing requirement that would otherwise apply to the development, subject to a cap of 50%. We estimate that under this model, the median Green Belt local planning authority affordable housing requirement will be 50%.
Local planning authorities already have powers to issue a completion notice which requires a developer to complete their development if it is left uncompleted. If they fail to do so, the planning permission for the development will no longer be valid.
In our recent response to the NPPF consultation, which can be found on gov.uk here, we made clear we are also taking steps to implement build out reporting, including bringing in a new requirement for housing developers to submit annual progress reports.
Where developers face financial difficulties before development is completed, we would expect local authorities to work with administrators to help unblock sites and restart housing delivery to complete the development. As part of their responsibilities local authorities should consider how to mitigate risks around infrastructure delivery including looking at the timing of infrastructure completion on site and considering whether it is appropriate to require developers to set aside bonds which can be used to complete infrastructure should the developer be unable to do so.
Local planning authorities already have powers to issue a completion notice which requires a developer to complete their development if it is left uncompleted. If they fail to do so, the planning permission for the development will no longer be valid.
In our recent response to the NPPF consultation, which can be found on gov.uk here, we made clear we are also taking steps to implement build out reporting, including bringing in a new requirement for housing developers to submit annual progress reports.
Where developers face financial difficulties before development is completed, we would expect local authorities to work with administrators to help unblock sites and restart housing delivery to complete the development. As part of their responsibilities local authorities should consider how to mitigate risks around infrastructure delivery including looking at the timing of infrastructure completion on site and considering whether it is appropriate to require developers to set aside bonds which can be used to complete infrastructure should the developer be unable to do so.
It is for local planning authorities to consider whether holiday lodges would be suitable to become permanent primary homes. Where a holiday lodge is judged to be unsuitable for use as a permanent home, for example due to its size, location or access to amenities, a local planning authority can attach conditions to the grant of planning permission which restricts the use of the property.
Officials in my department hold regular discussions with colleagues at HM Court Tribunal Service (HMCTS) and the Ministry of Justice, as well as members of the judiciary, in respect of ongoing work to ensure that the First-tier Tribunal (Property Chamber) is prepared for the introduction of the measures in the Renters’ Rights Bill.
The revised National Planning Policy Framework we published on 12 December 2024 expects developments to provide net gains for biodiversity, including through incorporating features which support priority or threatened species such as swifts, bats and hedgehogs.
Hedgehog highways are identified in the National Model Design Code and Planning Practice Guidance as a feature to enable movement between development sites, and Natural England’s Green Infrastructure Framework sets out how development can incorporate a range of nature friendly features including bricks with a hole which can benefit sparrows, tree sparrows, swifts, starling, and bats.
The Government works closely with police and community partners, including Tell MAMA, to monitor and support victims of Islamophobia. Tell MAMA has been funded by government since 2012 to deliver a reporting service and provide support for victims of Islamophobia. In 2024/25, the Ministry of Housing, Communities and Local Government has made up to £1 million of funding available to Tell MAMA via Faith Matters to continue this work.
All relationships with government-funded partners are kept under constant review and subject to regular monitoring and evaluation. The Government is actively considering its approach to tackling Islamophobia more broadly. We will provide further details on this soon.
Non-Executive Board Members’ relevant interests are updated and published bi-annually as part of an established process as set out on the following gov.uk page: Non-Executive Board Member declaration of interests process - GOV.UK.
Ministry of Housing, Communities and Local Government (MHCLG) has already outlined savings found as part of the Fixing the Foundations: Public Spending Audit 2024-25. This included an agreement to £154 million in savings in response to the HM Treasury (HMT) Savings Commission. As part of this, MHCLG has stopped non-essential consultancy spend.
As set out in the English Devolution White Paper and Local Government Finance Policy Statement, it is our aim that local government reorganisation will lead to further efficiencies.
The department will also work closely with HM Treasury as part of the Spending Review 2025 Phase 2 to identify where these should be pursued for 2025-26 and onwards.
The government published its Impact Assessment for the Renters’ Rights Bill on 22 November 2024, following scrutiny from the Regulatory Policy Committee. The Impact Assessment received a ‘green’ rating, indicating it is ‘fit for purpose’.
Throughout the development of the Impact Assessment, we have used evidence from a range of sources. In relation to pets, we have drawn on information from the English Housing Survey, insurance comparison websites, a number of animal organisations and discussions with industry trade bodies. All evidence and assumption underpinning the costs and benefits are detailed in the Impact Assessment, which can be found on gov.uk here.
The government published its Impact Assessment for the Renters’ Rights Bill on 22 November 2024, following scrutiny from the Regulatory Policy Committee. The Impact Assessment received a ‘green’ rating, indicating it is ‘fit for purpose’.
Throughout the development of the Impact Assessment, we have used evidence from a range of sources. In relation to pets, we have drawn on information from the English Housing Survey, insurance comparison websites, a number of animal organisations and discussions with industry trade bodies. All evidence and assumption underpinning the costs and benefits are detailed in the Impact Assessment, which can be found on gov.uk here.
The revised National Planning Policy Framework we published on 12 December 2024 expects developments to provide net gains for biodiversity, including through incorporating features which support priority or threatened species such as swifts, bats and hedgehogs.
The National Model Design Code and Natural England’s Green Infrastructure Framework set out how development can incorporate a range of nature friendly features including swift bricks.
We will continue to consider what action may be appropriate to drive up rates of swift brick installation in new build properties.
The Department does not routinely publish ministerial responses to representations.
The Government has committed to simplifying the wider local funding landscape, reviewing and reducing the number of grants (and ringfences), and consolidating grants into the Local Government Finance Settlement wherever possible. This will support local authorities to plan budgets more effectively and have greater freedom to deliver local priorities. We will also end wasteful competitive bidding processes and cut burdensome reporting requirements for government grants - allowing local authorities to focus on delivering services for their residents. We are inviting views (until 12 February 2025) on our principles and objectives for local government funding reform through a consultation.
Allocations for the UK Shared Prosperity Fund in 2025-26 were published on GOV.UK on 13 December and can be found here.
Living in or owning an unsafe home without knowing when and how it will be made safe can have significant impact on the lives of residents and leaseholders. That is why we expect developers and owners to sign works contracts and make buildings safe as quickly as reasonably practicable, and to keep residents and leaseholders informed throughout in line with guidance in the Code of Practice for the Remediation of Residential Buildings. As part of the joint plan that we published in December 2024, developers committed to accelerate this work and government committed to support them in overcoming barriers such as disputes between developers and building owners over access license agreements and scope of remedial works.
An open letter from the Leader of Westminster City Council was published on 18 September 2024, a copy of which can be found here.
Responsibility for designating any area of land in Greater London as a Mayoral development area rests with the Mayor of London. Any future proposal for Oxford Street would be subject to a statutory consultation in line with the requirements of the Localism Act 2011. The Government remains supportive of locally-led plans to revitalise Oxford Street and looks forward to working with the Mayor of London, local leaders and businesses to ensure Oxford Street remains a world-class retail destination.
Data on the number of prisoners released under SDS40 who were released homeless is retained locally at each prison. Ministry of Justice is currently collating data relating to the September and October SDS40 release dates and this will be published in due course.
MHCLG collects and regularly publishes management information from local authorities on rough sleeping. The most recent data, for September, was published here on 28 November. The management information includes the number of people seen sleeping rough following release from prison.
MHCLG collect information on duties owed to those have been in custody through the homelessness case level collection (H-CLIC) on a quarterly basis and the figures for April to June are published here. This data will be used to monitor the impact of the SDS release scheme on homelessness levels, once received.
The Government does not issue guidance on political finance matters. The Electoral Commission, as the independent body responsible for regulating political finance, has a statutory duty to provide guidance on donations.
I refer the hon Member to the answer given to Question UIN HL3289 on 20 December 2024.
The provisional Settlement for 2025-26 makes available £69 billion for local government, which is a 3.5% real terms increase in councils’ Core Spending Power on 2024-25. The final Settlement will increase further, to incorporate the £515 million of funding announced for National Insurance Contributions.
This government is absolutely committed to tackling the issues that matter to rural communities. Places with a significant rural population (encompassing both authorities classed as predominantly Rural, and Urban with Significant Rural) will on average receive around a 5% increase in their Core Spending Power next year, which is a real terms increase. No council will see a reduction – and new funding will be available to rural areas in 2025-26 through guaranteed EPR payments.
The cash, percentage, and real terms changes in Core Spending Power for rural and urban authorities, according to the classification methodology used by the Department for Environment, Food and Rural Affairs, and published by the Office for National Statistics, are found in the table below (please see below the table for further explanatory information).
Table 1. Provisional local government finance settlement 2025-26,core spending power by Rural/Urban classification
Rural/Urban Classification 2011 | Core Spending Power 2024-25 (£ million) | Core Spending Power 2025-26 (£ million) | Cash increase (£ million) | % change CSP 2023-24 to 2024-25 | % real change CSP 2024-25 to 2025-26 |
Predominantly Rural | 8,725 | 9,151 | 426 | 4.9% | 2.4% |
Urban with Significant Rural | 11,194 | 11,844 | 650 | 5.8% | 3.3% |
Predominantly Urban | 36,067 | 38,564 | 2497 | 6.9% | 4.4% |
Unclassified - no Rural/Urban classification available | 8,996 | 9,326 | 330 | 3.7% | 1.2% |
Total England | 64,982 | 68,884 | 3902 | 6.0% | 3.5% |
Explanatory information and sources
Further information on the provisional local government finance settlement, including the increases in grant for rural and urban areas can be found in the provisional local government finance settlement core spending power publications. These have now been updated to include local authority Rural/Urban classifications and can be accessed via the following link: https://www.gov.uk/government/publications/core-spending-power-table-provisional-local-government-finance-settlement-2025-to-2026.
The provisional Settlement for 2025-26 makes available £69 billion for local government, which is a 3.5% real terms increase in councils’ Core Spending Power on 2024-25. The final Settlement will increase further, to incorporate the £515 million of funding announced for National Insurance Contributions.
This government is absolutely committed to tackling the issues that matter to rural communities. Places with a significant rural population (encompassing both authorities classed as predominantly Rural, and Urban with Significant Rural) will on average receive around a 5% increase in their Core Spending Power next year, which is a real terms increase. No council will see a reduction – and new funding will be available to rural areas in 2025-26 through guaranteed EPR payments.
The cash, percentage, and real terms changes in Core Spending Power for rural and urban authorities, according to the classification methodology used by the Department for Environment, Food and Rural Affairs, and published by the Office for National Statistics, are found in the table below (please see below the table for further explanatory information).
Table 1. Provisional local government finance settlement 2025-26,core spending power by Rural/Urban classification
Rural/Urban Classification 2011 | Core Spending Power 2024-25 (£ million) | Core Spending Power 2025-26 (£ million) | Cash increase (£ million) | % change CSP 2023-24 to 2024-25 | % real change CSP 2024-25 to 2025-26 |
Predominantly Rural | 8,725 | 9,151 | 426 | 4.9% | 2.4% |
Urban with Significant Rural | 11,194 | 11,844 | 650 | 5.8% | 3.3% |
Predominantly Urban | 36,067 | 38,564 | 2497 | 6.9% | 4.4% |
Unclassified - no Rural/Urban classification available | 8,996 | 9,326 | 330 | 3.7% | 1.2% |
Total England | 64,982 | 68,884 | 3902 | 6.0% | 3.5% |
Explanatory information and sources
Further information on the provisional local government finance settlement, including the increases in grant for rural and urban areas can be found in the provisional local government finance settlement core spending power publications. These have now been updated to include local authority Rural/Urban classifications and can be accessed via the following link: https://www.gov.uk/government/publications/core-spending-power-table-provisional-local-government-finance-settlement-2025-to-2026.
For 2024-25, English local authorities estimate business rates receipts will be £26.3 billion, of which £16.2 billion is retained locally. Local authorities have not yet submitted their estimates of business rates income for 2025-26. In addition, authorities receive income from Section 31 grant as part of the business rates retention system.
Core Spending Power, published alongside the settlement, includes Settlement Funding Assessment which is comprised of Revenue Support Grant and a component linked to business rates - Baseline Funding Levels. Baseline Funding Levels represent an authority’s need that is funded via business rates.
The government has no plans to change the adult social care precept. However, on 8 January, the government laid regulations which will change how billing authorities include information on the Adult Social Care precept on council tax bills from 2025/26. This is a presentational change to council tax bills and has no effect on the overall operation of the precept.
MHCLG recognises the need for a long-term solution and are working with Defra to explore potential approaches.
In line with the previous two years, at the 2025-26 provisional Local Government Finance Settlement the government announced that it will provide £3 million in funding for authorities most impacted by Internal Drainage Board Levies.
MHCLG and Defra will ensure that all potential long-term solutions are given careful consideration.
I refer the hon Member to the answer given to Question UIN 20985 on 9 January 2025, which states that government has launched a consultation on a range of proposals to strengthen the local government standards regime. This includes proposals for the possible introduction of a mandatory minimum code of conduct for local authorities in England.
The results of this consultation will help to inform any policy or legislative change with respect to local government codes of conduct.
The Government has been clear that our approach to tackling religious hatred will never inhibit free speech or allow cultural or religious sensitivities to get in the way of delivering justice. We have been focused on a more integrated and cohesive approach to tackling religious hatred. While we are carefully looking at the issue of a definition for Islamophobia as part of this approach, this would not be legislative and would be used as a guidance tool for institutions.
The erection of a new electricity pylon close to a dwelling (property) will give the owner or occupier the right to submit a proposal (formal challenge) to alter the Council Tax list. The proposal can be made if they believe there has been a “material reduction” in the value of the dwelling due to “any change in the physical state of the dwelling’s locality”. Material reduction is defined in section 87 part 10 of the Local Government Finance Act 1992.
Forms and guidance for making a proposal can be found on gov.uk here.
Project Heart was an internal term previously used by officials to describe the anticipated works associated with the Grenfell Memorial. This term is no longer in use.
The final design for a fitting and lasting memorial will be determined by the Grenfell community. The government is committed to supporting the independent Grenfell Tower Memorial Commission in delivering a memorial to honour those who lost their lives and those whose lives were forever changed by the tragedy.
The Commission launched the process, in July 2024, to appoint a Multi-Disciplinary Design Team to work with the community to design the memorial.
There is no formal agreement with the Houses of Parliament or the Restoration and Renewal Programme regarding the use of the Queen Elizabeth II Conference Centre. Therefore, there is no policy in place. Nevertheless, the Department continues to collaborate with the Houses of Parliament ahead of Restoration and Renewal proposals coming to the House in 2025.
The Government does not routinely hold or collect data to identify public buildings that are frequently visited by the public. Therefore, we have not made an assessment of the current levels of non-compliance in relation to Display Energy Certificates (DECs).
We are currently consulting on the Reforms to the Energy Performance of Buildings regime which includes proposals to support compliance with the requirements of the regulations includes those for DECs.
Rooting out these abhorrent forms of hatred is an absolute priority for this Government, and we have already taken a number of steps to achieve this.
In July, the Prime Minister reappointed Lord John Mann as the Government’s Independent Adviser on Antisemitism to continue providing advice on the most effective methods to tackle antisemitism.
In response to public disorder in August which targeted Muslims and mosques, the Government introduced a rapid protective security response process for places of worship. We have provided security to more than 700 additional places of worship during this period. Protective security continues to be a priority, with up to £29.4 million per year being made available for protective security at mosques and Muslim faith schools from 2024/25 to 2027/28. Further, we have committed £1 million this year to support Tell MAMA to continue their work of monitoring and tackling Islamophobia. We have also committed to reversing the previous government’s decision to downgrade the recording and monitoring of antisemitic and Islamophobic non-crime hate incidents – capturing this data will aid the prevention of more serious crimes.
We are finalising our renewed, more strategic approach to tackling antisemitism and Islamophobia, working in partnership with communities, and will provide further updates shortly.
Homelessness levels are far too high. This can have a devastating impact on those affected.
The Deputy Prime Minister is leading cross-government work to deliver the long-term solutions we need to get us back on track to ending all forms of homelessness. This includes chairing a dedicated Inter-Ministerial Group, bringing together ministers from across government to develop a long-term strategy.
We have also established an Expert Group to bring together representatives from across the homelessness and rough sleeping sector, local and combined authorities and wider experts. The role of this expert group is to provide knowledge, analysis and challenge to help Government understand what is working well nationally and locally and where improvements are needed.
As well as work on the Inter-Ministerial Group and Expert Group we are also working closely with the sector to deliver a number of lived experience forums to ensure that the voices of those with lived experience are reflected in the homelessness strategy. We will continue to meet with a range of stakeholders, including mayors and MPs, to make sure the strategy is informed by a range of expertise.
Homelessness levels are far too high. This can have a devastating impact on those affected.
The Deputy Prime Minister is leading cross-government work to deliver the long-term solutions we need to get us back on track to ending all forms of homelessness. This includes chairing a dedicated Inter-Ministerial Group, bringing together ministers from across government to develop a long-term strategy.
We have also established an Expert Group to bring together representatives from across the homelessness and rough sleeping sector, local and combined authorities and wider experts. The role of this expert group is to provide knowledge, analysis and challenge to help Government understand what is working well nationally and locally and where improvements are needed.
As well as work on the Inter-Ministerial Group and Expert Group we are also working closely with the sector to deliver a number of lived experience forums to ensure that the voices of those with lived experience are reflected in the homelessness strategy. We will continue to meet with a range of stakeholders, including mayors and MPs, to make sure the strategy is informed by a range of expertise.
Questions UIN 15923 and UIN 15934 concerned combined authorities. Greater Lincolnshire will be established as a combined county authority under legislation currently before Parliament. When that legislation is approved by Parliament, and made, the Greater Lincolnshire mayoral election will be added to the published list of elections.
The government’s guidance sets out that the one-year period of marketing for sale or let will begin to run from when the dwelling has first been marketed for sale or let. This period may therefore run concurrently to or immediately following the one-year period during which a dwelling has been empty before the empty homes premium applies.
The cost to local authorities of providing small business rate relief was taken into account when setting up the business rates retention system. The Government has also compensated local authorities through additional grants to reflect changes to the small business rates relief scheme since 2013.
The provisional Settlement for 2025-26 makes available £69 billion for local government, which is a 3.5% real terms increase in councils’ Core Spending Power on 2024-25. The final Settlement will increase further, to incorporate the £515 million of funding announced for National Insurance Contributions.
The Department works closely with local government and other government departments to understand specific demand and cost pressures facing local government on an ongoing basis. This involves looking at a range of cost and demand data, as well as regular engagement with local authorities.
Future funding for local government and the timings of the Local Government Finance Settlement are bound by the spending review cycle. The government has committed to a multi-year Spending Review in Spring 2025. We are committed to delivering the first multi-year Settlement in 10 years in 2026-27, which will distribute funding based on an updated assessment of need. We are fully consulting with the sector on our funding reform proposals.
The proposed reforms to the local government standards and conduct framework in England would apply to all relevant authorities as defined by Section 27(6) of the Localism Act 2011. This includes bodies such as combined authorities, combined county authorities, and the Greater London Authority.
We want to see all of England access this devolved power by establishing Strategic Authorities that can make the key decisions to drive economic growth. Outside of London, these Strategic Authorities should take the form of Combined or Combined County Authorities over areas of genuine strategic scale. The English Devolution Bill will establish in statute a standardised framework of powers for Strategic Authorities.