Local Government Financial Settlement (England) 2026-27

On Wednesday 11 February 2026, I was pleased to support the Local Government Finance Settlement. 

Local government provides the services people rely on every day – from social care and housing to road maintenance and tackling homelessness. This settlement will give councils the security they need to rebuild local services and strengthen our communities for the long term.

This settlement includes an additional £740 million in new grant funding. By the end of the multi-year period, councils will see a 15.5% increase in core spending power, worth over £11.4 billion compared with 2025-26. It restores a clearer link between funding and deprivation, ensuring that resources are directed towards the areas with the greatest need.

The package also includes nearly £3 billion over four years to reform children’s social care, significant support to address SEND pressures – including grants covering 90% of historic high-needs deficits up to 2025-26 – and a £272 million uplift for homelessness, rough sleeping and domestic abuse services. In addition, the Recovery Grant will see £2.6 billion invested over this Parliament in the most deprived councils.

These measures demonstrate a clear commitment to strengthening local government and putting services on a sustainable footing.

The Motion was voted on and carried: Ayes 277, Noes 143