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

To ask the Secretary of State for Housing, Communities and Local Government, what recent assessment her Department has made of the adequacy of funding provided by the Government to local councils.

We are providing a significant boost to local authorities in England. Taken together, the additional funding announced by the Chancellor at the Autumn Budget and at the 2025-26 provisional Local Government Finance Settlement will provide over £5 billion of new funding for local services over and above local council tax. This includes an additional £2 billion of grant through the Settlement in addition to a guarantee that local authorities in England will receive at least £1.1 billion in total in 2025-26 from the new Extended Producer Responsibility for packaging (pEPR) scheme, and a further £233 million of additional funding for homelessness services.

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.