Local Government Finance

(asked on 15th January 2025) - View Source

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

To ask the Secretary of State for Housing, Communities and Local Government, which individual funding streams to local government in 2025-26 are ring-fenced.


Answered by
Jim McMahon Portrait
Jim McMahon
Minister of State (Housing, Communities and Local Government)
This question was answered on 22nd January 2025

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 consultation on the provisional settlement launched on 18 December 2024 and closed 15 January 2025. The Government is considering responses and will publish a response at the final settlement. As with previous years, the majority of funding in the Local Government Finance Settlement is unringfenced recognising that local leaders are best placed to identify local priorities. As set out in the consultation on the provisional settlement, it is our intent to ringfence a number of the social care grants and we will set out details in due course.

The government has committed to simplifying the wider local funding landscape, reviewing and reducing the number of grants and ringfences, and consolidating grants into the Local Government Finance Settlement wherever possible. This will support local authorities to plan budgets more effectively and have greater freedom to deliver local priorities. We are inviting views until 12 February 2025 on our principles and objectives for local government funding reform through a consultation.

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