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Local Government Finance Settlement

The Department for Levelling Up, Housing and Communities and MHCLG set annual funding allocations to English local authorities through the Local Government Finance Settlement, covering core services, social care, and transport. The 2026–27 settlement introduces revised funding formulae for home-to-school transport and addresses accumulated deficits from COVID-19 and service pressures. Current issues include SEND deficits, rural authority cost pressures, and deficit management frameworks.

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Family: Scrutiny and evidence
29 Apr 2026 | Written question Ministry of Housing, Communities and Local Government linked

To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the answer of 11 March 2026, to Question 118190, on Local Government Finance, what proportion of the £740 milli

To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the answer of 11 March 2026, to Question 118190, on Local Government Finance, what proportion of the £740 million of funding was comprised of unallocated MHCLG …

▤ View document · ↗ GOV.UK
18 Jun 2025 | Written evidence linked

In recent years, government has provided single-year finance settlements, with stakeholders consistently calling for multi-year settlements to aid longer term planning and decision making. Written evidence from Cornwall Council highlighted how single year settlements compound the financial challenges it faces and makes longer-term financial planning almost impossible.23 Government has now committed to multi-year funding settlements in 2026–27, the first in a decade, with MHCLG stating they ar...

In recent years, government has provided single-year finance settlements, with stakeholders consistently calling for multi-year settlements to aid longer term planning and decision making. Written evidence from Cornwall Council highlighted how single year settlements compound the financial challenge

▤ View document · ↗ GOV.UK
18 Jun 2025 | Written evidence linked

Written evidence we received from the Chartered Institute of Public Finance and Accountancy pointed out that funding reform and local government reorganisation were opportunities to improve sustainability in the sector, but that local government approached these extensive reforms from a very fragile position.88 While MHCLG recognised there would be upfront costs to reorganisation, it expected to see savings in local government quite quickly due to simpler local government structures.89 Profes...

Written evidence we received from the Chartered Institute of Public Finance and Accountancy pointed out that funding reform and local government reorganisation were opportunities to improve sustainability in the sector, but that local government approached these extensive reforms from a …

▤ View document · ↗ GOV.UK
4 Jun 2021 | Written evidence linked

Manchester City Council told us that government support has not fully mitigated the impact of the pandemic, and the average pressure on next year’s budget is £15 million across the 10 authorities in Greater Manchester and £32 million across the eight core cities.45 In written evidence, SIGOMA told us that despite government support, member councils would be “assessing the viability” of the services they provide in 2021–22.46 CIPFA noted that in the same financial year, council tax will rise b...

Manchester City Council told us that government support has not fully mitigated the impact of the pandemic, and the average pressure on next year’s budget is £15 million across the 10 authorities in Greater Manchester and £32 million across the …

▤ View document · ↗ GOV.UK
4 Jun 2021 | Written evidence linked

We received written evidence from SOLACE, which told us that “one-year financial settlements, which are delivered late in the budget planning cycle, presents risks and can result in very damaging cuts to services residents and businesses rely on.” Similarly, CIPFA argued that delayed or incomplete information from government adds to the complexity of financial planning and leads to increased financial instability and may result in service reduction. SIGOMA similarly emphasised that without ce...

We received written evidence from SOLACE, which told us that “one-year financial settlements, which are delivered late in the budget planning cycle, presents risks and can result in very damaging cuts to services residents and businesses rely on.” Similarly, CIPFA …

▤ View document · ↗ GOV.UK