PARLIAMENTARY WRITTEN QUESTION
(10 March 2025)
Question Asked
Asked by:
Jas Athwal (Labour)
Answer
The final Local Government Finance Settlement for 2025-26 makes available over £69 billion for local government in England, which is a cash-terms increase of 6.8% in Core Spending Power on 2024-25. The most relatively deprived areas of England will receive 23% more per dwelling in Settlement funding than the least deprived areas.
The government is directly accounting for deprivation in the way it allocates funding, such as through the new one-off ‘Recovery Grant’, worth £600 million. The Recovery Grant 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 will lay the foundations for more fundamental funding reform, including an updated assessment of need, from 2026/27.
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