Local Government Finance: Greater London

(asked on 4th March 2025) - View Source

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

To ask His Majesty's Government, following the publication of the Local Government Finance Report (England) 2025–26 (HC 623), why the London Boroughs of Croydon, Harrow, Bexley and Bromley are not to receive the Recovery Grant for the 2025–26 financial year.


Answered by
Baroness Taylor of Stevenage Portrait
Baroness Taylor of Stevenage
Baroness in Waiting (HM Household) (Whip)
This question was answered on 11th March 2025

The Recovery Grant, worth £600 million, is only one part of the 2025-26 Local Government Finance Settlement, which makes available over £69 billion in 2025-26 and ensures that no council will see a decrease in Core Spending Power.

To start correcting the system, the government needs to make difficult decisions. As a result, some councils will not receive an allocation through the Recovery Grant.

The Recovery Grant is targeted towards areas with greater need and demand for services (we have used deprivation as a proxy for this) and less ability to raise income locally.

Bexley, Bromley, Croydon and Harrow will all see a real-terms increase in their core spending power for 2025-26.

Reticulating Splines