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

To ask the Secretary of State for Housing, Communities and Local Government, what steps her Department is taking to improve funding for local councils.

The government is committed to fixing the foundations of local government. In 2025-26 we targeted additional funding in the Local Government Finance Settlement to places with the greatest need and demand for services and less ability to raise income locally, through a new Recovery Grant

From 2026-27, we will update and improve the approach to funding allocations within the Local Government Finance Settlement by allocating funding to ensure that it reflects an up-to-date assessment of need and local resources. We will deliver the first multi-year settlement since 2016, enabling local government to focus on its priorities – delivering for residents and providing vital front-line services that people rely on every day. We will also simplify the local funding landscape, reducing the number of grants and consolidating them into the Local Government Finance Settlement so local authorities can plan more effectively. We will be consulting on more detailed proposals following the Spending Review.