PARLIAMENTARY WRITTEN QUESTION
(12 June 2025)

To ask the Chancellor of the Exchequer, with reference to paragraph 5.74 of the Spending Review 2025, published on 11 June 2025, whether the 3.1% annual growth figure for local authority spending power assumes all councils increase core council tax by 3% each year and all councils apply the full 2% adult social care precept increase as well; what the annual average real terms increase in grant funding will be between 2023-24 and 2028-29; and what the annual average real terms increase in grant funding will be between 2025-26 and 2028-29.

Asked by:
Sir Mel Stride (Conservative)

Table 5.17 of the Spending Review 2025 document refers to an estimated average annual real-terms growth rate for Local Authority (LA) Core Spending Power of 3.1% per year from 2023-24 to 2028-29. The approach to council tax within these estimates is in line with standard practice for LA Core Spending Power figures published by the Ministry of Housing, Communities and Local Government: https://www.gov.uk/government/publications/explanatory-note-on-core-spending-power-final-local-government-finance-settlement-2025-to-2026/explanatory-note-on-core-spending-power-final-local-government-finance-settlement-2025-to-2026.

As also set out in Table 5.17, the estimated average annual real terms increase in grant funding between 2023-24 and 2028-29 for the Local Government Departmental Expenditure Limit (DEL) budget will be 5.2%. Between 2025-26 and 2028-29, it will be 1.1%.

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