Open consultation

The Fair Funding Review 2.0

From:: Ministry of Housing, Communities and Local Government
Published: 20 June 2025
Last updated: 20 June 2025 — See all updates

Applies to England

Summary

A consultation on the government’s proposed approach to local authority funding reform through the Local Government Finance Settlement from 2026-27.

This consultation closes at
11:59pm on 15 August 2025

Consultation description

This consultation seeks views on the approach to determining new funding allocations for local authorities and fire and rescue authorities, building on the local authority funding reform: objectives and principles consultation which the government has formally responded to in parallel.

This consultation covers:

determining local authority funding allocations
approach to consolidating funding
measuring differences in demand for services and the cost of delivering them
measuring differences in locally available resources
the New Homes Bonus
transitional arrangements and keeping allocations up-to-date

It also covers:

long-term approach to the business rates retention system
devolution and wider reforms, including how we can bring Strategic Authorities closer to the Local Government Finance Settlement
ways we can reduce demands on local government to empower them to deliver for communities; and sales, fees and charges reform.

It invites views on the possible equalities impacts of these proposals.

Documents

The Fair Funding Review 2.0

PDF, 1.94 MB, 126 pages

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