Local Government Finance: Shropshire

(asked on 23rd 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, if she will reinstate the four percent funding floor for Core Spending Power growth for Shropshire.


Answered by
Jim McMahon Portrait
Jim McMahon
Minister of State (Housing, Communities and Local Government)
This question was answered on 31st January 2025

The current fiscal environment means the government cannot continue the poor value for money 4% Funding Guarantee. The government assesses that it does not use every pound of taxpayers' money most efficiently and that is it targeted on a transparent basis.

However, we will guarantee that no local authority sees a reduction in their Core Spending Power in 2025-26, after taking into account the increase in council tax levels, by applying a funding floor.

This will provide the protections required for authorities to sustain their services between years, whilst recognising that we must begin the process of redirecting as much funding as possible towards the services and places that need it most.

The government is making good on the promise to reform the local government funding system, and is committed to introducing an improved and updated approach to funding local authorities from 2026-27. We are inviting views on our principles and objectives for funding reform through a consultation (18 December – 12 February).

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