Let me take the opportunity in this first first magazine of 2026 to wish all LGA member councils a very happy new year.
As we look back on 2025 and ahead to 2026, we can reflect on the progress this Labour Government has made in bringing stability, investing in public services and investing in communities.
We see this in the commitment to beginning to rebuild councils’ finances. December’s provisional local government finance settlement was a symbolic moment, one when we could firmly say austerity is over.
Under previous governments between 2010 and 2020, local government saw a £16 billion reduction in funding.
The evidence shows that deprived, predominantly Labour areas faced disproportionate cuts – and have had to make difficult decisions to protect the services our communities need. It is right, therefore, that this settlement places a stronger focus on deprivation, need and tackling regional economic disparities.
Too often, funding has failed to reflect the real pressures facing communities with the greatest need.
In 2024, under Labour, we saw the biggest funding boost to local government since 2010.
Going forward, fair funding will ensure core spending power is directly connected to need and residents won’t face substandard services just because of where they live.
“This settlement places a stronger focus on deprivation and tackling regional economic disparities”
After years of financial insecurity and instability, councils will have greater certainty to plan, invest in and protect services. We have been calling for a multi-year settlement for councils and are pleased that this Labour Government has delivered on that.
There is still more to do to put council finances on a sustainable footing, and many authorities continue to face significant pressures – but this settlement marks progress.
Labour councils, in partnership with this Labour Government, will continue to work constructively to ensure councils have the resources they need to get on with the job of improving our communities in every region of the country.
- For more information about the LGA’s political groups, see LGA website.