The Fair Funding Review 2.0
Applies to England
Read the full outcome
Detail of outcome
This is the government response to the Fair Funding Review 2.0 consultation which was open from 20 June to 15 August 2025.
The consultation sought 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.
Alongside this, we have published the Local government finance policy statement 2026-27 to 2028-29 which sets out the government’s proposals for the 2026-27 to 2028-29 multi-year Local Government Finance Settlement.
Original consultation
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:
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long-term approach to the business rates retention system
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devolution and wider reforms, including how we can bring Strategic Authorities closer to the Local Government Finance Settlement
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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
Updates to this page
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Added government response to the consultation.
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Added accessible html version of The Fair Funding Review 2.0
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Privacy notice added.
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First published.