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 potential need for additional financial support to local authorities to offset revenue losses during the equalisation process of Council Tax rates.

Council tax is managed by local authorities, who decide what level of council tax they wish to set. There is an established system for the locally-led harmonisation of council tax levels across the restructured local authority area, no later than the start of the eighth year after reorganisation. The Government will continue to set referendum principles each year and any authority which sets a council tax increase above the principles must have it approved by voters.

The government is committed to ensuring that funding is targeted effectively at the places and services that need it most and allocated in a way that empowers local leaders to deliver against local priorities. This includes committing to multi-year allocations for each council through the upcoming 2026-27 Local Government Finance Settlement (LGFS) and moving to a more up-to-date assessment of each council’s needs and resources.