Final Local Government Finance Settlement: England, 2026-2027 to 2028-2029
This collection brings together all documents relating to the final Local Government Finance Settlement for England in 2026-2027 to 2028-2029.
The Local Government Finance Settlement is the annual determination of funding to local government. It needs to be approved by the House of Commons.
This collection covers the final Local Government Finance Settlement for 2026-2027 to 2028-2029, which will be the first multi-year Settlement in a decade. We will consult as required on the Settlement in each subsequent year, and final allocations for 2027-28 and 2028-29 will be confirmed in their respective years.
The provisional local government finance Settlement 2026-2027 to 2028-2029 was published on 17 December 2025.
Provisional Settlement 2026-2027 to 2028-2029 consultation response
This section contains the summary of responses to the provisional Local Government Finance Settlement consultation.
Final Local Government Finance Settlement 2026-2027: supporting documents
This section contains useful information for understanding the final Local Government Finance Settlement for 2026 to 2027, including:
- the final Local Government Finance Report 2026 to 2027 that has been laid before the House of Commons
- a key information table for local authorities regarding core Settlement allocations
Council tax report 2026 to 2027
This section contains a final version of the council tax referendum principles report that has been laid before the House of Commons:
- the final Referendums Relating to Council Tax Increases (Principles) Report 2026 to 2027
Core Spending Power of local authorities 2026-27 to 2028-29
Core Spending Power is a measure of the resources available to local authorities to fund service delivery. It sets out the funding made available to local authorities through the Local Government Finance Settlement. This section has:
- an explanatory note, which sets out the methodology used to calculate Core Spending Power
- an information table, which shows for each local authority: the change in Core Spending Power since last year; Core Spending Power per capita; and the component figures which are included in Core Spending Power (council tax, locally retained business rates and relevant government grants)
To note, Core Spending Power figures set out local authorities’ position under 50% business rates retention arrangements, which is the position that applies to most local authorities. Core Spending Power figures have not been amended to reflect authorities with bespoke ‘increased’ business rates retention arrangements (i.e. above 50% retention arrangements).
Business rates retention 2026 to 2027
This section contains useful information for understanding the business rates retention system for 2026 to 2027, including:
- an explanatory note for authorities with increased business rates retention arrangements
- a supplementary table setting out all local authorities’ 50% business rates retention position, for calculation purposes
- 2025-2026 Income Baseline Calculator. This replaces the calculator the government published on 20 November alongside the Reset policy paper.
Funding assessment calculators
This section contains further information on how the Fair Funding Review 2.0 reforms will be implemented through local authority funding allocations over the multi-year Settlement. It includes:
- Fair funding allocation multi-year calculator
- Fair funding share calculator
Methodology for the Fair Funding Review reforms
Technical methodology annexes that set out how the various Relative Needs Formulae are calculated, which are used as part of the needs and resources assessments in determining financial allocations for local authorities under the Fair Funding Review reforms.
Recovery Grant Uplift
This sections sets out an explanatory note setting out the methodology for calculating the recovery grant uplift.
Final Local Government Finance Settlement 2026 to 2027: social care funding
This section sets out further information on social care funding. It includes:
- worked examples for the Children and Young People’s Services Formula
Support for local authorities for Dedicated Schools Grant deficits
This section contains further information on the government’s plans to support local authorities with Dedicated Schools Grant deficits. It includes:
- an explanatory note on the government’s approach to Dedicated Schools Grant deficits support
Funding simplification
This sections includes an explanatory note setting out the methodology for calculating the recovery grant uplift. This section will be updated with a final allocations table for all consolidated grants shortly. The provisional allocations can be found at: Allocations tables for all consolidated grants from 2026-2027 to 2028-2029.
Mayoral Strategic Authorities
The final Local Government Finance Settlement for 2026 to 2027 will fund Mayoral Strategic Authorities through the Local Government Finance Settlement, and the Integrated Settlement where applicable. This section includes:
- an explanatory note on Mayoral Strategic Authority funding 2026 to 2027
Bespoke arrangements
This section sets out information on bespoke arrangements. This includes:
- an explanatory note on the Greater London Authority’s bespoke treatment
- an explanatory note on the City of London bespoke treatment