PARLIAMENTARY WRITTEN QUESTION
(2 December 2024)
Question Asked
Asked by:
Ben Maguire (Liberal Democrat)
Answer
The government published a policy statement on 28 November 2024 that confirmed that local government will receive an around 3.2% real-terms increase overall in Core Spending Power as part of the Local Government Finance Settlement 2025-26. Places with a significant rural population will on average increase of around 5%.
We are also introducing a new ‘Recovery Grant’, worth £600 million, distributed using a formula that is based on deprivation and council tax base. This will start to correct the unfairness of the current system by putting councils in the areas with greater need and demand for services on a more stable footing. This grant marks the first meaningful step towards preparing for reform that has been taken in over a decade.
We will set out more detail at the provisional Settlement in December where we will consult on allocations for 2025-26, alongside launching a consultation on the objectives and principles of local government funding reform.
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