Provisional Local Government Finance Settlement 2026-2027 to 2028-29
This collection brings together all documents relating to the provisional local government finance settlement for England 2026-2027 to 2028-29.
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 brings together all documents relating to the provisional local government finance settlement for England 2026-2027 to 2028-29. Following the conclusion of this consultation, the final settlement for 2026 to 2027 will be published and laid before the House of Commons in early 2026.
Provisional Local Government Finance Settlement 2026 to 2027: consultation
This section contains the provisional local government finance settlement consultation document. The consultation runs for 4 weeks and the government is seeking views by 14 January 2026.
Provisional Local Government Finance Settlement 2026-2027 to 2028-29: supporting documents
This section contains useful information for understanding the provisional Local Government Finance Settlement for 2026 to 2027, including:
- the draft local government finance report 2026 to 2027
- a key information table for local authorities regarding core Settlement allocations
Council tax reports 2026 to 2027
This section contains a draft version of the council tax referendum principles report that will be laid before the House of Commons for approval at the time of the provisional settlement:
- the draft Referendums Relating to Council Tax Increases (Principles) Report 2026 to 2027
Core spending power of local authorities 2026 to 2027
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; and
- an information table, which shows for each local authority: the change in core spending power since last year; core spending power per dwelling; 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:
- a key information table for business rates pools;
- an explanatory note for authorities with increased business rates retention arrangements; and
- a supplementary table setting out all local authorities’ 50% business rates retention position, for calculation purposes .
Fair Funding calculators
Funding simplification
This section contains further information on how the government is simplifying the local government revenue grant landscape from 2026-27. This section includes:
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allocation tables for all consolidated grants; and
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an explanatory note on funding simplification, which includes further information on the new consolidated grants, including draft conditions.
Mayoral Strategic Authorities
The provisional local government finance settlement for 2026 to 2027 proposes to 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.
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.
Provisional settlement 2026 to 2027: social care funding
This section sets out further information on social care funding.
Bespoke arrangements
This section contains an explanatory note on the Greater London Authority’s bespoke handling.