New funding formulae published
The Government has set out how councils in England will be funded from 2026/27, with new funding formulae based on 2025 indices of deprivation, population projections and service demand.
finance
Councils ‘essential to reducing economic inactivity’
Councils must be at the forefront of national efforts to reduce economic inactivity and strengthen the workforce, the LGA has said, in response to recent government initiatives.
Tackling barriers to growth could unleash £276bn of economic potential
Councils across England could unleash £276 billion of untapped economic potential – equivalent to more than a tenth of national output – with government support to break down place-specific barriers to growth, according to LGA-commissioned analysis.
Funding system is “broken”
Councils are being “forced to play along” with the Government’s “top-down” devolution programme or “face the threat of local government reorganisation without consent”, according to Kevin Hollinrake, former Shadow Secretary of State for Levelling Up, Housing and Communities.
SEND override to continue as LG funding consultations published
A workaround allowing councils with responsibility for special educational needs and disabilities (SEND) to balance their books will continue after March to 2028, the Government has confirmed.
Reforms and more funding for audit
The Government will provide funding to councils to cover the costs of additional audit fees, with a first tranche of £49 million for qualifying local authorities in 2025/26.
Local government finances becoming ‘unsustainable’
Council finances in England are becoming unsustainable because of increasing demand on essential frontline services, the impact of delayed finance reform, and the erosion of investment in preventative programmes.
Funding for NICs confirmed
Overall funding for local government in England will increase by 6.8 per cent in cash terms compared with 2024/25, according to the final finance settlement, published in early February.
Call for urgent reform of council funding
An outdated and complex funding model is hindering councils’ ability to plan effectively and meet the growing needs of their communities, according to a new report.