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

To ask His Majesty's Government what assessment they have made of the (1) economic, and (2) social, impacts on central London boroughs of reforms to the local government funding system; and whether they plan to review the reforms on an ongoing basis.

This Local Government Finance Settlement is our most significant step yet to make English local government more sustainable. The government is making good on long overdue promises to fundamentally update the way we fund local authorities. As a result of the fair funding review reforms, nine in ten councils will receive funding that broadly matches their assessed need by the end of the multi-year Settlement, up from around a third before our reforms.

The vast majority of councils in London will see a real-terms increase between 2024-25 and the end of the multi-year Settlement. Outer London boroughs will see the biggest increases in available Core Spending Power over the multi-year Settlement.

Details for the multi-year Settlement allocations for each of the 32 London councils are published in the Core Spending Power tables, available here (and attached): https://www.gov.uk/government/publications/core-spending-power-table-final-local-government-finance-settlement-2026-27-to-2028-29

The government published its equalities impact analysis for the Fair Funding Review reforms as part of the consultation response, published August 2025 here (and attached): Fair Funding Review 2.0 government response.

We continue to review the wider local government finance system to ensure it remains fit for the future and delivers value for taxpayers. The government will continue to use the provisional Local Government Finance Settlement process to consult on relevant decisions for future years.