LONDON, Feb. 9 -- The government of the United Kingdom issued the following news:
Councilsmost in needwill have more money to bring back clean streets, fillpotholesandrestore localservicesthroughan extra£440 millionfundingboostconfirmedtoday (February 9).
Around£78 billionis beingmade availablefor councils across Englandthrough the Final Local Government Finance Settlementwith a top up to the Recovery Grant for areas hit hardest by historic cuts.
This record-breaking package marks a turning point in the way local government is funded, using a new evidence-based approach - including the latest Indices of Multiple Deprivation - that properly recognises local need and the true costs of providing services in deprived areas.
Councils have also been told how much they can expect to receive over the next three years as part of the first multi-year finance settlement in a decade, giving places the certainty they need toplan ahead, makesavingsand transform local services.
The funding announced todaybringsthetotal new investment in local services toover£5.6billion over the next three yearsand alsoprovides anadditional£740 millionin funding between the provisional and final settlement.
Othermeasuresset outinclude:
*
Councils most impacted by historic fundingcutswillreceive targeted investment through a£440 millionRecovery Grant upliftconfirmed today, with£2.6 billionmade available through the Recovery Grant by 2028-29.
*
Local leaders willget extra money to improve transport, buildhomesand create jobs through a£39.6millionboost to mayoral capacity funding also confirmed today.
*
Councils will have 90% of their historic SEND-related deficitsup to 2025-26written off,protecting their ability to continue to support children and young people with SENDat their local school, alongside delivering wider services and tacklingdeprivation
*
Vulnerable people at risk of homelessness will receive more help to find suitable, stable housing, with a£272 million upliftbringing total homelessness funding to over£2.7 billion.
Secretary of State for Housing, Communities and Local Government, Steve Reed said:
We inherited a system wherethe communities thatneededthe most supportwere leftbehind.Todaywe'returning the page.
This £78 billion settlement is about real change - potholes filled, streets kept clean,older people looked after,andyoung peoplehavingsomewhereto go in theirarea.
And withan extra £440 million for areas hardesthit by historic cuts,we're making sure every communitygets its fair share.
Ministerof State for Local Government and Homelessness, Alison McGovern MP said:
We promised to reconnect funding to deprivation - and this final Settlement delivers on that promise. With more new funding,we'regiving councils the certainty they need toplan aheadand transform services.
Our purpose is to support families, tackle homelessness before it happens, and finally giving communities worst affected by historic cuts their fair share.That's how we rebuild this country."
Deprived Communities
Residents in areas hardest hit by historic funding cuts will see greater investment in local services, with a£440 million boostto the Recovery Grantmeaning£2.6 billionhasnow been made available to them.
The boost will help councils in these areas invest in the everyday services people rely on, from keeping streets clean and parksmaintained, to supporting local libraries, leisure centres, andyouthclubs.It will also help councils modernise how they deliver services, so residents see real improvements in their day-to-day lives.
By directing more funding to where it is needed most, the government is addressing long-standing imbalances that saw some of the country's most deprived communities receive less support than better-off areas.
SEND
Rising demand forSEND support has left councils struggling to balance their budgets, forcing many to rack up significant deficits.
To help tackle this, the government has today confirmed90% of thesehistoric deficitsup to 2025-26will be written offthrough the largestinterventionon SEND deficits ever.
All local councils with a SEND deficit will be eligible to receive grant funding, subject to securing approval of a SEND local reform plan.
This will protect councils' ability tosupport childrenand young peoplewith SEND, alongside delivering wider services and tackling deprivation.
This is a first step. The government will set outfullplans in the Schools White Paper, which will outline reforms to create an inclusive education system that enables all children toachieveand thrive, while bringing about financial sustainabilityfor councils.
Homelessness
Vulnerable people at risk of homelessness willgetmore help to find suitable, stable housing.Atotalupliftof£272millionis being investedin theHomelessness, Rough Sleeping and Domestic Abuse Grant,bringing total funding toover £2.7 billion.
Of this money,£159 millionisfor supported housing and will target 40 local areas with the greatest need to help prevent homelessness and rough sleeping before it occurs.
The remaining funding includes£50 millionto support councils with new responsibilities under the Renters Rights Act,£45 millionfor homelessness prevention, and£19 millionto tackle domestic abuse.
Mayors
England'sregionaleconomieswillbenefitfrom better local transport, more homes, and improved job opportunities asregionalmayors gain new funding to invest directly in their regions.
The finalSettlementprovides anadditional£39.6millionof mayoral capacity funding to achieve this,as well as anadditional£99 millionto deliversupported housingservices forvulnerablepeople.
Taken together, thisbringsthe total fundingformayorstoalmost£435millionover the multi-year Settlementthrough the Mayoral Capacity Fund and the Homelessness, Rough Sleeping and Domestic Abuse grant.
Local Outcomes Framework
Instead of Whitehall micromanaging council spending, the government is focusing on the outcomes that matter mostto people- housing, jobs, care, and public services.
The new Local Outcomes Frameworksets out top prioritiesfor councils todeliverwith their local partners,including policeandschools.It will take effect from 2026/27.
Council Tax
Households will continue to be protected from excessive council tax rises, with increases capped at 5% forthe vast majorityofcouncils (3% plus 2% adult social care precept)- as set by thepreviousgovernment.
Sevencouncils facing financial challenges havetodaybeen granted limitedadditionalflexibilityat their request,in line withpreviousadministrations'approach.They areBournemouth,Christchurch andPoole (1.75%),Warrington(2.5%),Trafford(2.5%),Windsor and Maidenhead(2.5%),andWorcestershire(4%),Shropshire(4%),and North Somerset (4%).
Inalmosteverycase, the agreed rises are lower than the councilshaverequested to ensure taxpayers areprotected.No areawithadditionalflexibilitywill seetheirbills pushed above the national average.
Overall,theaverage council tax increase across England is not expected to exceed last year'saverage.
The government has also granted six Police and Crime Commissioners anadditional£3.50 council tax flexibility, and one fire authority anadditional£5, to help them manage significant sector pressuresandmaintainpublicsafety.
This is separate from the bespoke flexibilities previously granted to six councils with historically low levels of taxfrom 2027/28,as they transition to the new and fairer funding system.
Business rates
Ministershave listened to feedback and made technical changes sothe governmentmoreaccuratelyreflectscouncils' current income from local business rates pooling arrangements.
This technical adjustment has the practical effect of shifting money between authorities in an area towards councils responsible for social care, which is in line with our overallobjectiveto get funding to where it is needed most.
To help councils adjust to this change, the government will provide a one-off Adjustment Support Grant in 2026-27 to authorities who would otherwise see their Core Spending Power reduce in 2026-27, compared to indicative allocations set out at the provisional Settlement. Allocations for this grantareset outwithinthe final Settlement.
Notes to editors
* Council tax flexibility has been grantedintwo distinctcategories:
*
Sixcouncils with historically low tax levelswill have no referendumprinciples imposedfor 2027-28and2028-29.This wasset out at the Provisional Settlementas a measure to support them transition to newfairfunding allocations,andto save £250m transition funding to give to places in higher need.
*
Forcouncils facing financial challenges,for 2026-27 onlyweare accepting requests foradditionalflexibility from 7authorities.Not all requests were accepted in full.Windsor and Maidenheadappearin both categories.Thisflexibility willnotresult in households paying above the national average.
* The WMS is available here: Written statements - Written questions, answers and statements - UK Parliament
Disclaimer: Curated by HT Syndication.
