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

To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the number of local authorities that will (a) require 100 per cent income protection, (b) receive real-terms protection, and (c) fall within the 95 per cent funding floor due to being assessed as significantly above their Fair Funding Allocation; and whether he will publish (i) the assumptions used to determine the 2025–26 income baseline, including the treatment of locally retained business rates growth since 2013–14, (ii) the modelling used to calculate the cumulative impact of phasing in new allocations in thirds over the three-year Settlement, and (iii) the projected year-by-year funding changes for each authority once transitional protections, council tax flexibility assumptions, and business rates reset adjustments have been applied.

We expect the vast majority of local authorities with social care responsibilities will see their Core Spending Power increase in real terms over the multi-year Settlement, and most other authorities will see their income increase in cash terms.

We will support local authorities to manage their updated funding positions through a package of transitional arrangements. We will introduce changes over the multi-year Settlement and protect councils’ income, including locally retained business rates growth, through a range of funding floor levels appropriate to specific groups of authorities’ circumstances.

Further details on the proposed operation of these transitional arrangements, including the detail of the income baseline, is set out in the local government finance policy statement 2026-27 to 2028-29. Plans for delivering the business rates retention reset were also published alongside the policy statement. This sets out a full method of how current business rates income will be measured for the 2025-26 income baseline.

We will publish multi-year local authority allocations, including funding for transition and year-on-year Core Spending Power changes, at the upcoming provisional Local Government Finance Settlement later this month.