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

To ask the Secretary of State for Housing, Communities and Local Government, what estimate she has made of the funding gap for London councils in the next four years.

The provisional Settlement for 2025-26 makes available £69 billion for local government, which is a 3.5% real terms increase in councils’ Core Spending Power on 2024-25. The final Settlement will increase further, to incorporate the £515 million of funding announced for National Insurance Contributions.

The Department works closely with local government and other government departments to understand specific demand and cost pressures facing local government on an ongoing basis. This involves looking at a range of cost and demand data, as well as regular engagement with local authorities.

The government is making good on the promise to reform the local government funding system. We are committed to pursuing a comprehensive set of reforms for public services to fix the foundations of local government, in partnership with the sector and on the principle of giving councils early certainty. From 2026-27, we want to fundamentally improve the way we fund councils and direct funding to where it is most needed through the first multi-year settlement in 10 years. We are inviting views on our principles and objectives for funding reform through a consultation (18 December – 12 February).