Oral Answers to Questions

Debate between Afzal Khan and Alison McGovern

Monday 12th January 2026 Commons Chamber

[Afzal Khan (Manchester Rusholme) (Lab)]

15. What assessment he has made of the potential impact of the provisional local government finance settlement 2026-27 on Greater Manchester.

[The Minister for Local Government and Homelessness (Alison McGovern)]

The Government are making good on long-overdue promises to fundamentally update the way that we fund local authorities. We are re-aligning funding with need and deprivation through the first multi-year local government finance settlement in a decade. The provisional 2026-27 settlement will make available almost £78 billion in core spending power for local authorities in England. For Greater Manchester authorities, it makes available up to £3.92 billion in core spending power in 2026-27, an increase of 16.4% compared to 2024-25, which is a real-terms increase.

[Afzal Khan]

Fourteen years of Tory austerity saw harsh cuts to local government finances, which left our public services on their knees. This latest funding settlement by the Labour Government goes a long way to right the wrongs of the Tories, and to help local authorities deliver quality services for our constituents once again. I thank the Secretary of State for giving Manchester city council a £331 million cash injection, but does the Minister recognise that the council still faces huge pressure to meet needs, including those related to social services and education?

[Alison McGovern]

As I have said in this Chamber a number of times, we can provide substantial increases to councils, as we need to, and it is very important that we do in places like Manchester, but unless we have a more preventive approach—for example, unless we stop children being taken into care, or stop councils facing really big challenges—councils will still face spiking costs. I look forward to working with my hon. Friend and colleagues across Greater Manchester on making that work.