Local Government Finance

(asked on 19th January 2026) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, if he will publish a list of methodological changes made to the Fair Funding Allocation following the Government's consultation.


Answered by
Alison McGovern Portrait
Alison McGovern
Minister of State (Housing, Communities and Local Government)
This question was answered on 27th January 2026

Details on how the various formulae were calculated, including data and variables, were published in the provisional Local Government Finance Settlement 2026-2027 to 2028-2029 here: https://www.gov.uk/government/collections/provisional-local-government-finance-settlement-2026-2027-to-2028-29 These can be found in the supporting documents, in the ‘Methodology for the Fair Funding Review reforms’ section.

The provisional Settlement confirmed that the Recovery Grant, used to target funding at the most deprived places that suffered the most from historic funding cuts, will continue over the multi-year period. The method used to distribute the Recovery Grant to Local Authorities remains the same as last year and can be found in the published Technical note on Recovery Grant Methodology 2025- 2026, found here: https://www.gov.uk/government/publications/technical-note-on-recovery-grant-methodology-2025-to-2026

The government will consider all responses to the provisional Local Government Finance Settlement consultation and set out the details of any changes in the response that will be published alongside at the final Settlement.

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