Fair Funding Review

Baroness Butler-Sloss Excerpts

Monday 24th November 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I do not agree with the presumption in the question from the noble Baroness, Lady Pinnock. For too long, an outdated council funding system, based on decades-old data, has entrenched the inequality of which she speaks—we all know that—with those least able to raise council tax and business rates given less favourable funding settlements. This has left some councils on a cliff edge and communities in deprived areas facing service cuts and rising bills, as well as being unable to deliver the economic growth and housing that we know those communities need. Some councils in less deprived areas have benefited disproportionately, building up their reserves. Our reforms will reverse this injustice and make sure that councils will be funded fairly, enabling them to deliver for their communities on services and on the growth that we all want to see.

[Baroness Butler-Sloss (CB)]

In the part of Devon where I live, there are half a dozen separate building projects. As far as I can see, almost none of them is doing much in the way of affordable housing. What are the Government doing to encourage affordable housing in all such projects?

[Baroness Taylor of Stevenage (Lab)]

The noble and learned Baroness, Lady Butler-Sloss, may be aware that the Government have allocated an unprecedented £39 billion of funding for a new social and affordable homes programme. Our ambition is to deliver around 300,000 social and affordable homes over the programme’s lifetime, with a target to deliver at least 60% of the homes under the programme as social rent. This is really important in both urban and rural communities to make sure that we are able to allocate social and affordable housing in those areas. We will be enabling councils to use their right-to-buy receipts to pair up with the funding from the social and affordable homes programme.