Fair Funding Review

Lord Lansley Excerpts

Monday 24th November 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I agree with my noble friend that we need to make sure we realign funding with need and deprivation so that local authorities can deliver for their communities—as I said, the services that are needed and the economic growth that they need. The vast majority of councils with social care responsibilities will see their core spending power increase in real terms over the multi-year settlement. We will publish our response to the fair funding review and the policy statement and set out our plans for the first multi-year local government finance settlement. That is really important because it gives councils the certainty they need to plan over the medium to long term.

[Lord Lansley (Con)]

My Lords, while councils will benefit from increased council tax from new homes being built, the cost of providing services to those new homes will not be included in the baseline funding level unless and until there is a reset. Can the Minister tell the House how frequently the Government will undertake that reset so that the cost of providing services to homes is built into the baseline funding level?

[Baroness Taylor of Stevenage (Lab)]

I cannot give the noble Lord the exact answer to his question now. We have said that creating this multi-year funding settlement will help local authorities to plan for the future. We will keep in constant contact with our local government community to make sure that the changes we are making are made on up to date data—we have looked at a completely new dataset for the indices of multiple deprivation—because the data that was being used was not up to date. The Government will be working closely with local authorities as we move this forward to ensure that it is delivering the change we all want to see.