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

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Spending Review 2025, CP1336, of 11 June 2025, Table 5.17, what the average annual (a) cash and (b) real terms increase is in the central government grant to local government across the spending review period.

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 which will 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 additional £3.4billion on Local Government Departmental Expenditure Limit (DEL) budget means the estimated average annual real terms increase in grant funding between 2023-24 and 2028-29 will be 5.2%. Between 2025-26 and 2028-29, it will be 1.1% in real terms. This is set out in Table 5.17 of CP1336.