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

To ask the Secretary of State for Housing, Communities and Local Government, what assessment she has made of the cost pressures faced by local authorities in providing statutory services.

The government recognises the significant pressures that councils are facing.

This Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. This includes £3.4 billion of new grant funding to be delivered through the Local Government Finance Settlement within financial years 2026-27 to 2028-29.

The £3.4 billion, when taken together with a 3% core council tax referendum principle and a 2% adult social care precept, results in an average overall real terms increase in local authority core spending power of 2.6% per year over the next multi-year settlement (2026-27 to 2028-29).

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, alongside regular engagement with local authorities.