Local Government Finance

(asked on 28th November 2025) - View Source

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

To ask the Secretary of State for Housing, Communities and Local Government, whether the Government intends to ensure that no local authority sees a cash reduction in its core spending power as a result of upcoming funding changes during local government reorganisation.


Answered by
Alison McGovern Portrait
Alison McGovern
Minister of State (Housing, Communities and Local Government)
This question was answered on 8th December 2025

As set out the local government finance policy statement and response to the Fair Funding Review 2.0 on Thursday 20 November, we will support local authorities, including those undergoing reorganisation or in rural areas, to manage their updated funding positions through a package of transitional arrangements.

As a result of these changes, we expect the vast majority of local authorities with social care responsibilities will see their Core Spending Power increase in real terms over the multi-year Settlement, and most other authorities will see their income increase in cash terms.

Areas undergoing reorganisation will continue to benefit from this package of transitional support following reorganisation. We will not recalculate transitional support allocated to reorganised councils following reorganisation, which will further benefit these councils. Considering the efficiencies that are possible through reorganisation, we expect that areas will be able to meet any further one-off costs associated with reorganisation over time from existing budgets.

We will publish multi-year local authority allocations, including funding for transition and year-on-year Core Spending Power changes, at the provisional Local Government Finance Settlement later this month.

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