Local Government Finance: Greater London

(asked on 15th October 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, what assessment he has made of the potential impact of the Fair Funding Review 2.0 changes to inner-London council's funding on (a) London and (b) the UK's economic growth.


Answered by
Alison McGovern Portrait
Alison McGovern
Minister of State (Housing, Communities and Local Government)
This question was answered on 22nd October 2025

The government has been listening closely to the views expressed by the public, local authorities and other bodies on the proposals set out in the Fair Funding Review 2.0 consultation. No final decisions on the outcome of the review have yet been taken. However, the government’s proposals will target central government grant funding to where it is needed the most. Subject to consultation, the proposals set out mean that the most relatively deprived places, which on average have higher levels of child poverty, will have more income than the least deprived places. The vast majority of councils with social care responsibilities will see their Core Spending Power increase in real terms over the multi-year Settlement. We will publish further information in the government’s consultation response in Autumn, followed by the provisional Local Government Finance Settlement later this year.

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