Society of
County Treasurers
County Treasurers
Simon Edwards, Chief Executive of the County Councils Network, said:
“At the start of the reorganisation process the government set out very clear criteria, outlining that new councils should have a population of 500,000 or more and to avoid the unnecessary fragmentation of care services.
“County councils put forward evidence-based proposals that comprehensively met those tests, with each one commanding a great deal of support from residents, business and public sector partners and underpinned by robust and deliverable implementation plans.
“Despite this, the government have chosen to implement proposals that are clearly at odds with their own criteria. Some 12 of the 15* proposed unitary authorities are substantially below the 500,000 population threshold, while we now face the prospect of widespread disaggregation of care services and unprecedented levels of complex boundary changes to create small, under-bounded city based unitary councils.
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Councils are required to publish reports showing they are spending all their highways cash purely on road maintenance, with long-term plans for protecting roads.
English councils risk losing up to a third of their funding to fix potholes if they fail to demonstrate they are working effectively, the Department for Transport (DfT) has announced.
Some £525 million of the £1.6 billion funding for local roads maintenance in the 2026/27 financial year will be held back unless authorities prove they are spending the money appropriately.
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A funding boost of almost £130 million is set to be distributed across cultural venues, museums and libraries in England, the Government has announced.
The funding, from the Government’s Arts Everywhere Fund, will be shared among 130 venues across the country with the aim of helping to improve accessibility to arts and culture, and to provide welcoming and affordable spaces for local communities to visit.
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The amount of waste being illegally dumped is out of control – and those leading the fightback say local authorities are making things worse
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English councils are facing rising external debt and a fall in usable reserves following a 4.1% real-terms increase in spending on social care by local authorities in the past year, analysis has found.
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As many as 165,000 homes could be affected by the government’s mansion tax in the first year, the fiscal watchdog has estimated. The high value council tax surcharge, often referred to as a mansion tax and announced in last year’s Budget, will take effect in 2028, applying to residential properties valued at more than £2m.
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Disgruntled county councils could slow down local government reorganisation with legal challenges to Whitehall's verdict.
Ministers last week revealed their plans for reorganisation in the Devolution Priority Programme areas of Essex, Norfolk, Suffolk and Hampshire – with proposals for Sussex still to be finalised.
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Schools do not have enough staff to achieve the Government's aims of providing support for more children with special educational needs and disabilities (SEND) in mainstream schools, the National Education Union has said.
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The first wave of local government reorganisation decisions has divided opinion, after many of the new councils fell below the government’s previously stated 500,000 population threshold criteria.
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The OECD has slashed its UK growth forecast and flagged the biggest inflation revision among major economies, as the US and Israel’s war on Iran sends energy prices up.
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A new video shows how local government remains one of the most meaningful, human and quietly extraordinary callings in public life, writes the president of the Society of Local Authority Chief Executives & Senior Managers.
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Official figures show for the fourth year in a row, the England-wide increase in council tax has averaged around 5 per cent. An LGA spokesperson said: “While council tax is an important funding stream, it cannot solve the long-term pressures facing councils, raising different amounts in different parts of the country – unrelated to need. Significant new funding, alongside long-term reform?of the local government finance system, remains desperately needed to protect the financial sustainability of councils and ensure they can deliver the services communities expect.”
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Essex CC has said it is “looking to legally challenge” the government’s local government reorganisation decision proposal across the area.
Yesterday communities secretary Steve Reed said he would implement five new unitary councils across Greater Essex. Alongside Essex, LGR proposals are also being taken forward in Hampshire, Suffolk and Norfolk.
In a statement, Essex CC leader Kevin Bentley (Con) said: “The government set out criteria for the new councils on fragmentation, sustainability of services and the ability to withstand financial shocks. The justification for their decision is thin. Given the government’s reasons for their decision, we will be looking to legally challenge.”
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The County Councils Network (CCN) has raised “serious questions” about the local government reorganisation decisions announced today and will be “seeking further information” about the process.
The concern follows today’s government announcement about LGR decisions in four areas; Essex, Hampshire, Suffolk and Norfolk.
None of the counties’ business cases were accepted by the government, with proposals from districts and unitaries being taken forward. The average population size for the 16 councils announced today is almost 150,000 below the government’s initial 500,000 threshold.
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The average size of the new 16 unitary councils announced today is almost 150,000 less than the government’s initial minimum threshold, LGC analysis has found.
When local government reorganisation was announced the government initially said that new unitarities should have a population of at least 500,000, but the average of the newly announced councils is 356,000.
Within days of the initial announcement the then local government minister Jim McMahon said there would be flexibility and 350,000 may “get a better settlement” with a focus on an urban “anchor” for each new council.
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The government has placed a premium on smaller councils and housebuilding, writes acting editor Martin George.
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Top union bosses have slammed a 3.3% increase offered to 1.5 million council workers across Britain as 'insulting' - but a pay body says it's fair to both employees and local authorities
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Councils in England will have to set out plans to create more places in local mainstream schools for children with special educational needs and disabilities (SEND) as a condition of receiving a share of £860 million in new government funding. Authorities must submit their written plans to the Department for Education outlining how they will enable more pupils with SEND to attend their local school and reduce the number of children travelling long distances for their education.
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The UK inflation rate remained at 3 per cent in the year to February, the Office for National Statistics says. The statistics body says clothing was the largest driver of inflation, but this was offset by lower petrol prices before the US-Israel war with Iran.
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The government has opted for between three and five new councils in four areas on the devolution priority programme, but delayed confirming the outcome in two other counties.
In a written ministerial statement this lunchtime communities secretary Steve Reed said: “Decisions on each area have been made on a case-by-case basis, on its own merits, respecting the differences of local circumstances and local people’s views.”
In the four county areas where decisions have been made the government has opted for the business cases that create new councils with populations below its initial 500,000 minimum threshold.
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In a comment piece for the LGC, Cllr Dr Wendy Taylor, Chair of the LGA’s Health and Wellbeing Committee sets out early findings on the future of adult social care, arguing the system should remain rooted in local government with councils central to integrating services. She calls for a shift towards prevention, stronger powers to shape care markets and a model combining national standards with locally led delivery.
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Top-performing secondary schools admit around half as many disadvantaged pupils with special educational needs and disabilities as the average comprehensive, according to research by the Sutton Trust. The report suggests pupils with SEND, particularly from low-income backgrounds, are less likely to attend high-attaining schools, with some leaders believing schools may be discouraging applications amid wider pressures on resources and support.
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Councils in England threatened 1,500 residents with prison over council tax arrears in five years, a debt charity has found.
A freedom of information investigation by StepChange Debt charity has found widespread inconsistency in how English councils collect council tax debt, with some using the threat of imprisonment in their very first letter to residents who fall into arrears.
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A corporate peer challenge review has issued a capacity warning to Cornwall Council as it looks to move closer to forming a foundation strategic authority (FSA).
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North and West Northamptonshire councils will align under a strategic authority should their preferred option of joining a larger South Midlands organisation continue to falter.
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The Government has announced that more than 300 schools across England will open or expand nurseries from September, as part of efforts to reduce childcare costs and improve provision in deprived areas.
A total of 331 schools have been successful in applying for a share of £45m in funding to build or expand nurseries on their sites, creating over 6,000 additional childcare places.
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Opposition politicians have warned the English Devolution and Community Empowerment Bill will fall unless the Government listens to their concerns.
Shadow Conservative local government minister David Simmonds pointed out the Bill failed to contain a carry-on clause, allowing it to continue into the next Parliamentary session.
Simmonds said the Bill would ‘die' unless there was ‘significant negotiation with other parties'.
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The Government has announced seven proposed locations for a new generation of towns, each expected to deliver at least 10,000 homes, with several planned to provide up to 40,000.
The proposed sites are Tempsford in Bedfordshire, Crews Hill and Chase Park in Enfield, Leeds South Bank, Manchester Victoria North, Thamesmead in Greenwich, Brabazon and the West Innovation Arc in South Gloucestershire, and an expansion of Milton Keynes.
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The Government has announced a £319m investment package aimed at regenerating high streets and improving community spaces across England, as part of its Pride in Place strategy.
The largest share — £301m— will go towards High Streets Innovation Partnerships, supporting local communities to reimagine struggling town centres as mixed-use spaces incorporating homes, health services, libraries, community hubs and green spaces.
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Average employer pension contribution rates are set to fall by almost a third following the three-yearly valuation of the Local Government Pension Scheme, the LGC Investment Seminar has heard.
Rob Bilton, partner and fund actuary at Hymans Robertson, told the event the average employer contribution rate will decrease from 21% at the 2022 triennial valuation to around 16-17% in the 2025 valuation.
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The Bank of England Monetary Policy Committee has voted to keep its base rate steady at 3.75% as the ongoing conflict between the US, Israel and Iran drives up energy prices.
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The Prime Minister has announced a £53 million support package aimed at assisting vulnerable households facing rising heating oil costs. Local councils in England will determine eligibility and distribution of the funds, which will replace the temporary Household Support Fund starting 1 April. The LGA said that heating oil was already included in guidance for councils on both the Household Support Fund and the Crisis and Resilience Fund, and that it had not been made aware of any changes to how they are applied.
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The Local Government Association intends to appoint an interim chief executive while the permanent postholder Joanna Killian is on unplanned leave.
Ms Killian has been on leave for “personal reasons” since the end of January.
Today the LGA chair Louise Gittins (Lab) announced an interim chief executive would be recruited to “ensure continuity of leadership during this period”.
Cllr Gittins said: “We remain focused on what matters most: supporting councils to deliver for their communities. Our day-to-day business continues at pace, as we support councils across key policy areas, through our engagement with Whitehall and with our targeted support across all regions.
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Croydon LBC has pledged to tackle a raft of problems highlighted in a review into its £16.7m overspend on special educational needs and disabilities (SEND).
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Local roads across England and Wales face a record £18.62bn repair backlog that would take 12 years to clear, according to the latest Annual Local Authority Road Maintenance (ALARM) survey.
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The Government has today announced details of pilots to test pooled budgets in five areas, ahead of setting out a vision for public service reform later this year.
Local government secretary Steve Reed said the pilots would cover special educational needs and disabilities across the Liverpool City Region, young people at risk of offending in Gateshead and South Tyneside, adolescent mental health across four local authorities in the Black Country: Dudley, Sandwell, Wolverhampton and Walsall, adults facing multiple disadvantage in Doncaster, and preventing youth unemployment across West Yorkshire.
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The government has set out a list of “minimum interventions” that integrated care boards should deliver for neighbourhood health in the next three years.
The neighbourhood health framework, that outlines the set of interventions and “ten core steps” for ICBs and local authorities, was unveiled in a written statement by care minister Stephen Kinnock yesterday afternoon.
The ambition is to improve services for people who need routine healthcare, improve proactive care for people with complex needs and deliver “better alternatives” to hospital care.
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Rachel Reeves has begun the process of developing “a roadmap for future fiscal devolution”, which will be published at the Budget.
In her Mais lecture at Bayes Business School, given earlier today, the chancellor laid out her plans for local government to gain more control over existing government revenue or raise additional income, which are set to be published in the Budget later this year.
Ms Reeves said she has tasked officials with working with “mayors and businesses” about the plans.
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Some of the biggest councils in England are set to save millions of pounds in employer pension contributions after their pension funds recorded increased surpluses.
LGC research ahead of the 31 March deadline for pension funds to publish the results of the 2025 actuarial valuation, which used data as of 31 March 2025 to see if their assets are sufficient to pay their future liabilities, found one council will save £35m next year alone.
Lancashire CC said its employer contribution rate will fall from 16.3% in 2025-26 to 9.3% in 2026-27, reducing the amount it pays into Lancashire County Pension Fund from £87m to £52m.
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Worcestershire CC's 9% council tax rise has been used to ‘bash us over the head', a senior Reform UK figure has claimed.
Speaking to The MJ, Reform's head of local government delivery, Ben Bradley, said Worcestershire's finances represented a ‘uniquely difficult challenge' due to the ‘legacy of the prior administration', but insisted the tax increase was ‘good fiscal management'.
Bradley added: ‘It's not what they wanted to do but once they patch things up there will be better things to come.'
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Chancellor Rachel Reeves has promised to give ‘local leaders’ spending control of some national taxes in a ‘permanent transfer of power and resources’ to regions.
Reeves used her annual Mais Lecture to announce that Treasury officials would work with leaders to ‘develop a roadmap for future fiscal devolution to be published at this year's Budget'.
She said: ‘Our new approach means genuine partnership with mayors and local leaders.
‘Local leaders are asked to plan for the long term, to be accountable for regional outcomes, but fiscal reward for local and economic success flows straight to the exchequer.
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Councils facing the axe are moving to sign high-value long-term contracts before ministers sign the legal orders paving the way for local government reorganisation, The MJ can reveal.
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Councils in England may soon have new powers to force fly tippers to clean up waste they have dumped and pay fines without having to go through the courts. The proposal is one of several government initiatives to tackle rising waste crime, as part of a new action plan expected on Friday. Fly tippers could face 20 hours of community service to clean their illegal dumps, and fines of up to £300 for the offence. In response, Cllr Arooj Shah, Chair of the LGA's Neighbourhoods Committee, said: “Councils want to work with government to tackle the scourge of fly tipping and protect our communities from environmental crime” but added that councils must be “properly resourced and supported” to implement the cautions. Cllr Shah also said: “Sentencing guidelines must be reviewed so punishments properly reflect the seriousness of the offence and the harm it causes to communities.”
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Lord John Fuller has lauded the decision of fellow peers to scupper the Government's ability to influence how local government pension funds are invested.
Parliament's upper house defeated ministers this week and pushed through an amendment to the Pension Schemes Bill preventing the Government from introducing powers which could force funds to invest in British assets.
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The Government is proposing to establish ‘local scrutiny committees' to oversee strategic authorities.
They will apply to established mayoral strategic authorities from April 2027, and all others from April 2028.
The Ministry of Housing Communities and Local Government said committees would ‘hold them to a higher standard of scrutiny on how public money is spent and decisions are made'.
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Regional mayors could be given control of some tax revenue to spend on their local priorities, Chancellor Rachel Reeves has announced. The plans, which will be detailed in the autumn Budget, would not increase taxes but instead hand control of some national tax income to those leaders, Reeves added.
At a lecture to business leaders, she said this, alongside following more EU rules and a £2.5bn investment in artificial intelligence (AI) and quantum computing, will help boost the UK's sluggish economy. The Conservatives said the government "wanted to row back on Brexit" and criticised it for "blaming anyone but themselves for their economic failures".
At her Mais Lecture at the Bayes Business School in the City of London, Reeves also said the student loans system needed fixing, but it was not "front of the queue" of political priorities.
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Just over half the audit opinions on 2024-25 council accounts were modified in some way, with a big increase in those with a qualified opinion.
The ‘backstop’ deadline to finalise the 2024-25 accounts was 27 February 2026 and new data from the organisation Public Sector Audit Appointments shows that by that point 40% received an unmodified opinion.
This is a slight improvement on this time last year when the deadline for the 2023-24 accounts was 28 February and 38% achieved an unmodified opinion before this date.
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A Public Accounts Committee report has cast doubt on a government pledge to halve the amount it spends on consultants, after warning that departments are failing to comply with the Cabinet Office directive on consultancy spend and nothing is being done to monitor compliance.
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The British Chambers of Commerce has warned that the unemployment rate is expected to rise, with business leaders reporting that rising costs, including increased minimum wage and national insurance, are making it difficult to hire young people in the UK.
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It’s time to accept that when it comes to local government accounts simplification, we can’t have our cake and eat it, writes Mark Green, vice-chair of the CIPFA Better Reporting Group.
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The Government was this week accused of shifting the burden of supporting asylum seekers to councils.
Home secretary Shabana Mahmood last week announced plans to remove support for asylum seekers found to be illegally working, breaking the law or deemed to be able to support themselves.
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Council tax support for working-age households in England could be integrated into Universal Credit to simplify the system and strengthen work incentives, says the Institute for Fiscal Studies (IFS).
Council tax support, which helps low-income households reduce their council tax bills, has been locally designed and administered by English councils since 2013–14, resulting in a wide range of schemes with differing levels of generosity and eligibility rules.
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Baroness Louise Casey has been urged to look at local authority trading companies (LATCo) providing an ‘antidote' to billions of pounds being drained from social care.
Rhian Stone, chief executive of Bolton Cares, Bolton MBC's LATCo, told The MJ's inaugural LATCo conference in Birmingham last week: ‘The problem is the dominance in recent years of the private sector – the profit motive in social care is a serious drain on the overall budget.
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Councils involved in local government reorganisation have been told to make sure they are “at the front of the queue” to sign contracts with suppliers, who will have limited capacity to support all the new councils being created simultaneously.
Delegates at last week’s LGC Summit – LGR Special, held under the Chatham House rule, were warned they may face problems if they are slow to approach suppliers because there are 21 areas going through the process at similar times.
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The government’s proposals include conflicting and confusing comments about local accountability and scrutiny, writes the chief executive of Wyre Forest DC.
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Kensington & Chelsea RBC has agreed to freeze employer pension contribution rates at 0% for three years, after a decision was made at the authority’s investment committee on Monday.
In a report by Phil Triggs, the tri-borough director of treasury and pensions, it said that the actuarial modelling meant that there was discretion for rates to be set between 0% and 7.2%.
The committee proposed that contribution rates should be at 0% after it found the fund would still operate at an 84% likelihood of success of reaching full funding over 20 years, even with a drop to 0%. If the rate had been set at 7.2% there would have been an 87% likelihood of success. The funding strategy currently requires an 80% likelihood of success.
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Fundamental questions remain to be answered in the local government reorganisation process, The MJ Future Forum has heard.
Dorset Council chief executive Catherine Howe said the reorganisation process was ‘brutal, unnecessarily so' but was ‘still the right thing to do'.
However, she was concerned that an opportunity to change the sector for the better could be missed.
‘My concern is people are being forced to make it more of the same with different lines on the map,' Howe added.
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March is often cited as the worst month for vehicles being impacted by potholes, according to car insurer Admiral, as roads have had several months to deteriorate by this point. The number of pothole-related incidents attended by the AA last month was up 28 per cent to 68,684, compared to 53,666 in February 2025, after a wetter-than-average winter across the UK. Ministers have pledged a £7 billion funding package spanning four years for local highway maintenance, although the LGA refers to asphalt industry figures which show about £17 billion is already needed to tackle the country’s backlog of road repairs.
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England’s “creaking” adult social care system is confusing and impenetrable to the people who rely on it and held together with “sticking plasters and glue”, the head of a government-commissioned review has said. Baroness Louise Casey said the country faced a “moment of reckoning” over its failure to effectively and fairly meet the needs of Britain’s ageing population and rising numbers of people with chronic conditions such as dementia and Alzheimer’s
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Government special educational needs and disabilities (SEND) reforms fail to take account of burgeoning home-to-school transport costs for local authorities, a committee of MPs has warned.
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Councils should not expect local government reorganisation to be an “immediate financial salvation”, attendees at an LGC event have been told.
Senior officers and experts gathered at the Oval in London for a one-day conference – LGC Summit – LGR Special – to discuss the challenges involved in LGR and share solutions.
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MPs have raised concerns that proposed reforms to the Special Educational Needs and Disabilities (SEND) system leave critical questions unanswered, particularly regarding home-to-school transport and council deficits. The Public Accounts Committee has urged the Government to clarify its support for councils facing ongoing SEND deficits, as the new funding arrangements do not address the significant costs associated with transporting children to school.
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Health Secretary Wes Streeting has accepted five 'simple asks' from Baroness Louise Casey regarding social care reform. These include establishing a national safeguarding board and accelerating dementia trials, highlighting the urgent need for action in the sector. Baroness Casey emphasised the significant power imbalance between councils and the NHS, calling for immediate reforms to support care workers.
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The Government has acknowledged a reduction in the Disabled Facilities Grant for the financial year 2026-27, with funding set at £723 million compared to £761 million in 2025-26. This comes despite increasing demand and anticipated inflation of 2.5 per cent.
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Household energy bills could increase by £160 a year from this summer after the war in Iran pushed the UK’s gas market to a three-year high. A typical combined household gas and electricity bill could reach £1,800 a year under the Government’s quarterly price cap from July, according to analysis by energy consultancy Cornwall Insight.
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Library visits increased across Great Britain last year, but spending on services has barely moved while paid staffing levels declined, according to the latest annual library survey published today by the Chartered Institute of Public Finance and Accountancy (CIPFA) and Infoshare+.
The survey shows physical visits rose by 3.2% in 2024/25, increasing from 2,796 to 2,887 per 1,000 people. Web visits saw an even sharper rise of 10.4%, climbing from 2,216 to 2,475 per 1,000 people.
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Rachel Reeves has updated MPs on her economic plans, in a low-key statement that did not contain any major tax or spending measures.
It comes as the Office for Budget Responsibility (OBR) - which monitors the public finances – unveiled its latest forecasts for the UK economy, external.
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Over three quarters of councils plan to raise council tax by the maximum allowed without a referendum, according to LGC’s latest research.
LGC’s latest council tax tracker has a sample of 126 authorities and found 77% planned to raise council by the maximum, with 6% having permission to raise it above the limit, 4% freezing bills and 13% raising tax below the limit for the 2026-27 financial year.
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The cost to councils of providing temporary accommodation for homeless people in England is projected to more than double to almost £4bn by 2029–30, the Local Government Association (LGA) has said.
The national membership body for councils found that since 2017-18, local authorities across England had spent almost £1.5bn more on temporary accommodation (TA) than had been reimbursed in housing benefit from the government.
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New analysis from the LGA has found that the cumulative cost of temporary accommodation to councils between 2017/18 and 2029/30 will balloon to £4 billion, with £2.5 billion of this amount still to come in the next few years, due to the Temporary Accommodation Subsidy Funding gap – the difference between what councils pay in housing benefit vs what they are reimbursed from the Government. Cllr Tom Hunt, Chair of the LGA’s Inclusive Growth Committee, said: “Because of this ever-widening issue, councils are caught in a vicious cycle of ever-increasing temporary accommodation costs versus static rates they receive back to cover their costs.”
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The Office for Budget Responsibility (OBR) has released a concerning economic outlook for local government finances, indicating a decline in net current spending in the coming years
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Over three quarters of councils intend to raise council tax by the maximum allowed without a referendum, according to LGC’s latest research. The study found that 77 per cent of the 126 authorities surveyed plan to increase council tax, with only a few opting for a freeze or a lower increase.
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Rachel Reeves has said stability in public finances, investment in infrastructure and reform to the economy are changing the UK for the better, and that any temptation to change course must be resisted.
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Lower borrowing but higher unemployment projections were part of the varied news the Office for Budget Responsibility delivered to Rachel Reeves before her Spring Forecast speech.
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Government should have ‘some leeway' to offer newly-elected council leaders the chance to put forward a formal view on reorganisation proposals, a think-tank chief has suggested.
Writing in The MJ this week, chief executive of Localis Jonathan Werran said outside London Reform UK could build on last year's local elections breakthroughs, when they took control of 10 county and unitary councils.
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MPs have warned that local government reorganisation could further undermine efforts to fix deep-rooted weaknesses in the UK’s public finances.
In a critical report on the Whole of Government Accounts (WGA), the Public Accounts Committee (PAC) said missing and unaudited data continue to erode confidence in the £1tn consolidated statement, which covers more than 10,000 public bodies.
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The LGA has warned that local government in England is at its “financially weakest” and that reliance on exceptional financial support is “not sustainable”. In its submission to Chancellor Rachel Reeves ahead of the Spring Statement today, the LGA has expressed “real” concern that despite councils receiving multi-year funding settlements and efficiency drives, “the sector is perhaps now at its financially weakest”.
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The Chancellor Rachel Reeves will present her Spring Statement to the Commons today, insisting she has “the right economic plan for our country”. She will emphasise the importance of stability in public finances amidst global uncertainties.
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The Local Government Association (LGA) is to look into the scale of the burden of members having to sign off salary packages worth more than £100,000.
Guidance issued in 2012 under section 40 of the Localism Act 2012 requires that full council, or a meeting of members, be offered the opportunity to vote before salary packages of £100,000 or more are offered in respect of a fresh appointment.
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The task of delivering a more sustainable local government finance system is – at best – only half done, and four challenges remain, says Paul Honeyben.
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Central government has introduced flexible voting pilot orders for certain local authorities in the upcoming May elections.
In a written ministerial statement democracy minister Samantha Dixon announced Cambridge CC, North Hertfordshire DC, and Tunbridge Wells BC will pilot early or advanced voting while Milton Keynes CC would test a centrally located voting hub alongside its usual polling stations.
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Nearly 40% of English councils are likely or very likely to require exceptional financial support (EFS) within five years, according to an annual report from the LGIU.
The LGIU's 2026 State of Local Government Finance report — published annually since 2012 — also found that this figure rises to 62% among those reporting significant debt, compared to just 29% of others.
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Roughly £9bn in unspent developer contributions is being held by councils, the Home Builders Federation (HBF) has found.
According to research from the HBF, the £9bn was acquired via planning agreements to finance local infrastructure, including schools, affordable housing, and transport.
A £6.6bn share of the planning agreement funds are from Section 106 agreements, with the Community Infrastructure Levy (CIL) having accumulated more than £2.2bn.
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Social care reform is caught in a political catch-22 with Government frightened to tackle the issue, according to a new report.
The King's Fund, report titled, Not my priority: how the public sees social care (and what can be done about it)', says the public has ‘social care fatigue' with politicians reluctant to address the issue due to past failures such as the ‘dementia tax' row in 2017.
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Experts have raised concerns as ministers are set to make final decisions on proposals for local government reorganisation.
Speaking at a discussion hosted by the Institute for Government (IfG) think-tank, it was agreed ministers will have to tread a fine line between recognising local circumstances and giving the same regard to national criteria for each region.
Partner at Grant Thornton, Joanne Brown said: ‘There's a concern and a question about how do you weight that criteria – they have to be consistent in their decision-making.'
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The Cumbria Combined Authority (CCA) and the Cheshire & Warrington Combined Authority have been officially created this week, after statutory instruments were laid in Parliament.
Devolution minister Miatta Fahnbulleh signed the orders this week and it and both areas are set to elect mayors in 2027.
The Cumbria CA is formed from Cumberland and Westmoreland & Furness councils and will have its first official meeting at Redhills in Penrith on 18 March, where members will begin to outline priorities and set key decisions for the months ahead.
The Cheshire & Warrington CA, which covers Cheshire East, Cheshire West & Chester and Warrington councils, has scheduled its inaugural meeting for April 2026.
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Norfolk CC’s leader has criticised the government for switching its priority from devolution to local government reorganisation, because her administration has “run out of time” to sign off the legislation needed to set up a combined authority.
Kay Mason Billig (Con), Norfolk leader, was speaking at a panel discussion hosted by the Institute for Government about the ideal size for new unitaries.
Last week Cllr Mason Billig declared that LGR and devolution “are off” for her county after the government’s u-turn means there will be elections for the county this May.
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Press Association analysis found that 119 councils have proposed or confirmed a 4.99 per cent council tax rise. The LGA warn that funding available to councils continues to fail to keep pace with inflation and demand pressures.
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A former health minister has said NHS spending has doubled from around £100 billion to £200 billion over the past 17 years with no impact on the nation’s health, amid warnings that outcomes have worsened and life expectancy has flatlined.
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Buckinghamshire Council has named Zina Etheridge as its new chief executive after Rachael Shimmin left earlier this year.
Ms Shimmin, who was the founding chief at Buckinghamshire, joined housing provider Anchor in January.
Ms Etheridge has most recently worked for NHS North East London ICB. Her departure from the ICB was announced last November.
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Care England has called on the Government to formally exclude adult social care premises from the proposed High Value Council Tax Surcharge, often referred to as the ‘Mansion Tax.’
In a letter to the Secretary of State for Housing, Communities and Local Government, Professor Martin Green OBE, Chief Executive of Care England, argued that care homes are not high-value private assets but essential public service infrastructure.
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The transfer of powers from Westminster to the newly created Cheshire and Warrington Combined Authority has been formally confirmed, marking a significant step in the region’s devolution journey.
A Parliamentary Order signed by the Minister for Devolution, Miatta Fahnbulleh MP, brings key transport, economic and skills powers from central government to the combined authority, which will unlock at least £650m in investment over the next 30 years.
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Work has started on a review of the national pay scale used to determine salaries for most council employees in England, Wales and Northern Ireland.
The unions' pay claim for 2026-27 submitted last year had warned the lower end of the National Joint Council pay spine was ‘now alarmingly close to the statutory National Minimum Wage and falls below the real Living Wage, which is independently calculated based on what people need to live'. It added this was ‘undermining the ability of councils to recruit and retain staff'.
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The Local Government Association (LGA) has urged ministers to implement the recommendations of an independent review on the timing of provisional and final finance settlements.
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The number of people sleeping rough in England is at its highest level since records began in 2010, according to latest government snapshot figures. Some 4,793 people were estimated to be sleeping on the streets on a single night last autumn, a 3 per cent increase from 2024, as the Government said £50 million of funding over three years would be provided to councils and frontline homelessness services.
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Two new funds to tackle homelessness head-on and help deliver on the national target to halve long?term rough sleeping by the end of this Parliament
Leading the way, a £37 million Ending Homelessness in Communities Fund will supercharge the work of voluntary, community and faith groups, often the first port of call for people in crisis. This record investment will be allocated competitively to small and medium-sized organisations delivering day-to-day prevention and support services across England. The fund will be used to support projects, staffing and building improvements to expand sector capacity, strengthen community networks and develop long?term, trauma?informed approaches to ending rough sleeping.
A further £15 million Long-Term Rough Sleeping Innovation Programme will target the 28 areas facing the greatest long term rough sleeping pressures, including London. Funding will help partners and local authorities find smarter, more joined-up ways to get people off the streets for good, from complex case co-ordination to peer mentoring and stronger links between services.
Today’s announcements are the next step in the government’s National Plan to End Homelessness, backed by £3.6 billion. The plan makes three pledges to be achieved by the end of this Parliament: halve long-term rough sleeping, end the unlawful use of B&Bs for families, and prevent more households from becoming homeless in the first place.
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Buckinghamshire Council has named Zina Etheridge as its new chief executive after Rachael Shimmin left earlier this year. Ms Shimmin, who was the founding chief at Buckinghamshire, joined housing provider Anchor in January.
Ms Etheridge has most recently worked for NHS North East London ICB. Her departure from the ICB was announced last November. She joined the ICB from Haringey LBC, where she was the chief during the covid-19 response. She has previously worked for the Cabinet Office on public service reform. She is expected to join the council in April.
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The Government's new special needs proposals have received a cautious welcome from education leaders, who warn of significant workload implications for schools. Taking part in a panel discussion with BBC Radio 4’s Woman’s Hour on the reforms, LGA Cllr Louise Gittins said: “[we need to ensure that] this new inclusive way of working is making sure that children and their families’ needs are being met”, describing how the reforms will mean a greater onus on partnership working between schools, local authorities, and health providers. Cllr Gittens also highlighted the importance of early intervention and prevention in these reforms.
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A BBC investigation reveals that nearly a quarter of English councils will not meet the deadline for implementing weekly food waste collections, as mandated by new legislation, with 71 citing delays due to high demand for specialist vehicles and funding issues. The LGA has called for clarity on funding for day-to-day costs to ensure all councils can effectively deliver this service, saying "It is important that all councils have local flexibility on how this service is delivered, alongside adequate funding and support
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A coalition of 25 housing charities and local government leaders have urged the Government to take action on the estimated 309,000 long-term empty homes in England to help alleviate the housing crisis.
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Energy bills in England are set to decrease in April due to a government shake-up of costs, with households expected to see an average reduction of £150.
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Uncertainty surrounds local government reorganisation (LGR) in Essex, with one leader branding the process ‘over' and little news on how ministers will help with Thurrock's debt.
Following the Government's U-turn on election postponements, Basildon BC's Labour leader Gavin Callaghan said: ‘There is no doubt LGR in Essex is over.
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Birmingham City Council failed to pass its budget, with its leader adjourning the meeting without a vote.
Although Labour has a majority a number of its members were not present at yesterday’s meeting to set its approximately £1.5bn revenue budget for 2026-27, and leader John Cotton (Lab) admitted “we need to take some additional time” to reach agreement.
There are 99 councillors, 52 of whom are Labour. The Conservatives are the largest opposition party with 22, followed by the Liberal Democrats on 13. The rest are independent or Green councillors.
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The government has revealed that councillors and mayors will regain access to the Local Government Pension Scheme shortly after this year’s local elections.
Councillors’ right to join to the LGPS was ended in 2014 under the coalition government, and last year communities secretary Steve Reed pledged to restore it.
The government today published the results of its consultation on the proposals.
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Some mega police forces are likely to cover two or three mayoralities, writes the chief executive of Wyre Forest DC.
We might wonder whether the title of the police reform white paper ‘From local to national’ was deliberately ironic: there is a strong theme of centralisation running through it.
It is not only the creation of a National (sic) Police Service to “provide strategic leadership, set standards and provide education, equipment and technology to police forces” (with the exception of the work presently done by the National Crime Agency, the NPS will actually cover only England and Wales).
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A Labour MP has urged the government to “pause and reconsider the evidence base” for local government reorganisation
Crawley Labour MP Peter Lamb voiced concerns that there is not enough evidence that councils will save money in the restructure, during a House of Commons debate this week.
Mr Lamb said: “We are undertaking a situation in which there will be significant financial costs to the local authorities but none of the savings that are currently projected.”
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This week the government has published its Schools White Paper, setting out sweeping reforms to the special educational needs and disabilities (SEND) system in England.
From September 2029, children's entitlement to Education, Health and Care Plans (EHCPs) will be reassessed as they move between education stages, and by 2035 will be reserved for children with the most complex needs.
New Individual Support Plans (ISPs) will be introduced, drawn up by schools and put into three categories: targeted, targeted plus, or specialist. The government said it would also invest £4bn in SEND provision over the next three years.
BBC News has been speaking to families, teachers, pupils and councils about their experiences of the current system, and their reactions to the government's proposals.
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The government has allocated 35 councils exceptional financial support totalling £1.5bn for the upcoming financial year.
This the highest number of councils for a single financial year, but lower than the numbers some had warned about towards the end of last year. Last year 30 councils were allocated a total of £1.4bn.
Councils that are included in the EFS programme are able to use borrowing or sell assets to enable them to set a balanced budget or support transformation programmes.
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The Chartered Institute of Public Finance and Accountancy (CIPFA) has warned proposed financial oversight and profit capping reforms in the children's residential care market may not reduce costs for local authorities and could lead to increased market instability
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Integrated care boards would have more involvement in providing support for children with special educational needs (Send) with greater emphasis on partnership working under plans set out by the government today.
The schools white paper, sets out the government’s ambition for more partnership working to support children in the community but warns that where councils fail to meet new standards the Department for Education will use its intervention powers.
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The government has said all schools will have to join a school trust, which councils will be given the power to create.
The proposals are included in today’s schools white paper, Every child achieving and thriving, which also outlines plans to update the school admissions code to benefit children from disadvantaged backgrounds or with additional needs.
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The government is set consult on a new formula for the pupil premium grant this summer.
Currently, identifying disadvantaged children eligible for additional funding is done using those who are accessing free school meals.
Today’s schools white paper said: “This does not enable disadvantage funding to schools to reflect different lengths and depths of disadvantage that children may be experiencing.”
The Department for Education (DfE) said the changes would “boost the impact” of the pupil premium by “driving funding to where children’s needs are greatest and supporting schools to implement more effective evidence-based approaches,” and “rebalance” how deprivation funding is distributed to schools.
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Councils will be required to notify schools and GPs when children are placed in temporary accommodation as part of efforts to avoid them missing out on education.
Today’s schools white paper from the Department for Education reveals the “new duty” as part of efforts to improve attendance.
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The government has announced a £4bn package for improving services for children with special educational needs and disabilities ahead of the upcoming schools white paper.
As part of this fund, over £200m will go towards family hubs to fund a dedicated Send “outreach and support offer” and a further £200m to “ensure all local authorities can transform how they operate in line with our reforms while maintaining current Send services”.
Furthermore the government has pledged that “every council” working with integrated care boards will “commission local professionals” such as educational psychology, occupational therapy and speech and language therapy.
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The government has pledged to retain all education, health and care plans until 2030 ahead of a transition to an alternative more “inclusive” system.
However, following this date children with special educational needs and disabilities (Send) who are at a mainstream school will move to individual support plans (ISP) and EHCPs will be reserved for children with more complex needs.
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The government has saved more than £17 million in rental costs over the past six months by closing a series of expensive central London offices, ensuring public money is redirected to where it is needed most.
The latest site to close, 10 Victoria Street, has now officially shut its doors. The move will save £8.8 million annually, making it the third major London building to close since September. The closures of The Rookery and Clive House earlier in the year brought combined annual savings from all three buildings to approximately £17.5 million.
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Reform UK would scrap defined benefit pension schemes for new council employees, according to Richard Tice MP, business, trade and energy spokesperson for the party.
Under its proposals, the party would also consolidate almost 100 council pension schemes into a single £500bn British Sovereign Wealth Fund.
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The government plans to introduce price bands and national standards for special educational needs and disabilities provision at independent schools in the upcoming white paper.
The Department for Education has unveiled plans to set national price bands for private school places as part of an ambition for “full cost transparency”.
As part of these plans, local authorities may be granted a “formal say” on new or expanding independent provision “so places are created where children actually need them”.
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The Local Government Association has extended the consultation period for its plans to restructure its workforce after a “technical breach” of process was identified.
An internal consultation was launched in January about plans to cut more than 10% of the organisation’s workforce as it seeks to modernise and close a growing funding gap.
However an independent external review of the process, commissioned by the board, found the LGA had failed to send Unison a formal written notice about potential redundancies at the beginning of the consultation period.
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The Government plans to invest £4 billion to enhance inclusivity in mainstream schools for pupils with special educational needs and disabilities (SEND). This includes £1.6 billion for early years, schools, and colleges, as well as additional resources for outreach teams and local authorities. This funding is part of a broader overhaul of the SEND system, with concerns raised by unions about whether the financial support will be sufficient to meet the needs of all children.
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The Government has announced plans to halve the disadvantage gap in schools by the time children born under the current administration finish their education. The upcoming Schools White Paper will reform funding distribution to better support disadvantaged pupils and introduce new programmes aimed at improving performance in the North East and coastal areas. Education Secretary Bridget Phillipson emphasised the need for a system that serves every child, regardless of their background or needs.
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A significant increase in capital gains tax, National Insurance contributions, and income tax receipts contributed to a record £30.4 billion surplus for the UK Government in January. This surplus, the highest since records began in 1993, reflects a positive trend in government finances, although economists caution that the overall public finances remain precarious due to slow economic growth
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It is reported that second home owners are reclassifying which property counts as their primary residence in order to reduce council tax bills in London. Analysts suggest the trend reflects behavioural shifts prompted by new 100 per cent council tax premiums on second homes. The Local Government Association said that charging a council tax premium is “one way of encouraging owners to bring properties back into permanent use.”
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Ministers are facing calls to indemnify returning officers as councils scramble to organise local elections following the Government’s U-turn on postponement plans.
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The Government’s doubling down on the recovery grant for deprived urban authorities in the final local government finance settlement has left the sector deeply divided.
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Harlow DC has frozen its council tax rate for a fifth consecutive year in its budget proposal for the 2026-27 financial year.
The authority has said it has delivered the proposal without any shortfalls or unidentified savings required.
Dan Swords (Con), Harlow leader said the budget was “the biggest in Harlow Council’s history”.
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The government has insisted it will make the final decision on LGR in Norfolk despite the leader threatening to pull out of the plans.
In a full council meeting earlier today, Norfolk CC leader Kay Mason Billig said that devolution and LGR is “off” in light of the government’s local election delay U-turn.
The Ministry of Housing, Communities & Local Government has told LGC that it is up to the communities secretary whether the LGR proposals will continue.
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Somerset Council has had its request to raise council tax above the referendum limit denied, with the leader now warning the authority faces “heartbreaking choices”. The council had its request to raise its council tax above the 4.99% council tax limit denied last week, with Somerset now in discussion with central government for EFS worth £25m.
Last year, Somerset was one of six councils given permission to raise council tax over the referendum threshold, being granted permission to raise rates by 7.5%. This year Somerset had asked for up to 5.9% above the threshold to bring the authority up to the national average.
In a statement, the authority said its financial situation “remains fragile” with a budget gap of around £33m for 2026-27, despite making £50m worth of savings since becoming a unitary council in 2023.
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Children with special educational needs and disabilities (SEND) in England will have their right to support reviewed as they move into secondary school, leaked government plans suggest.
Children with education, health and care plans (EHCPs), legal documents setting out what extra support they are entitled to, will be reassessed after primary school from 2029 as part of a wider system overhaul.
The BBC understands this will sit alongside an extension of legal rights to include all children with SEND through school-led Individual Support Plans (ISP).
Paul Whiteman, the general secretary of the National Association of Headteachers, told the BBC "the current system fails children and fails schools".
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A surge in capital gains tax, employers' National Insurance contributions and a boost in income tax receipts helped buoy the government's finances last month.
An uptick in tax receipts, which far outstripped spending, created a £30.4bn surplus in January. The Office for National Statistics (ONS) said it was the highest surplus in any month since records began in 1993, without adjusting for inflation, and nearly double last January's £15.4bn figure.
The boost is positive news for the government ahead of the Spring Statement in less than two weeks, but economists warned the public finances remained "finely balanced" as growth in wages and the broader economy remain slow.
The government usually collects more tax than it spends in January compared with other months due to self-assessed tax payments arriving in the month. Analysts had expected the surplus to be £23.8bn.
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English councils are facing a 70pc jump in special needs transport bills, rocketing to £3.4bn a year, the Education Secretary has been warned.
The County Councils Network (CCN) said local authorities are on course to have to transport 105,000 more special needs students to school a year by the start of the next decade, bringing the total to 311,000.
Councils on average spent £9,481 on transport for each pupil last year, the CCN said. The group, which represents local authorities outside of big cities, projects this figure will rise towards £11,000 by the next decade.
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Families who have children with special educational needs and disabilities (Send) should be means tested for school transport, according to councils in England, who say demand is rising “at an unsustainable rate”.
Local authorities are urging the government to be “radical” in its Send reforms, which are expected imminently, warning that annual costs on home-to-school transport for children with Send could rise to £3.4bn by 2030-31, up from £2bn last year.
The County Councils Network (CCN) said its analysis showed that without significant system reform local authorities would be transporting 100,000 additional pupils – “a city’s worth of young people” – to school by the end of the decade.
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Norfolk CC leader has announced its intent to pull out of devolution and LGR following the government’s decision to reverse the cancellation of local elections.
The government yesterday said it would withdraw its proposals not to go ahead with elections to 30 councils in areas affected by LGR in light of legal advice ahead of a High Court challenge led by Reform UK. Speaking at full council meeting today, leader Kay Mason Billig (Con) accused the government of “election hokey-cokey” due to Norfolk’s mayoral and county election delays.
“As a result I can tell you today that devolution and LGR are off. We cannot consent to the new statutory instrument that is necessary to set up our mayoral county combined authority in the months before our elections... So that’s it, ten years of work potentially down the pan because of this incompetent government.”
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Local election administrators have warned that councils face "an uphill struggle" to be ready in time for local elections in May after the government reversed its plan to delay some votes.
Local Government Secretary Steve Reed had initially approved delays in 30 council elections in England until 2027.
But in a surprise announcement on Monday, the government announced it would be abandoning plans to postpone ballots following a legal challenge brought by Reform UK.
Explaining the U-turn, the government said its legal advice had changed - but it has not provided further details, and is now facing pressure from opposition parties to publish the advice.
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The body championing rural services warns the Government’s final local government finance settlement for 2026–27 to 2028–29 raises ‘serious concerns’ for rural communities.
The Rural Services Network’s (RSN) early analysis suggests rural residents may face around 17% higher council tax per head compared with urban areas, highlighting funding pressures on services in the countryside.
The RSN says the settlement’s funding formula still appears to favour urban authorities, with rural councils at risk of receiving disproportionately lower spending power, despite higher costs of delivering services across dispersed populations.
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The consumer price index measure of inflation dropped to 3 per cent in the year to January, according to Office for National Statistics data. The fall in inflation, combined with Tuesday's jobs data showing unemployment at a near five-year high and wage increases slowing, has reportedly increased the likelihood of an interest rate cut by the Bank of England in March.
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The body championing rural services warns the Government’s final local government finance settlement for 2026–27 to 2028–29 raises ‘serious concerns’ for rural communities.
The Rural Services Network’s (RSN) early analysis suggests rural residents may face around 17% higher council tax per head compared with urban areas, highlighting funding pressures on services in the countryside.
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The government has withdrawn its plans to postpone 30 local elections “following legal advice”. Originally the government said it would order a postponement for these 30 councils to free-up capacity for local government reorganisation. Earlier this month, Reform UK submitted a legal challenge against this decision and the case was due to be heard in a two-day High Court hearing on Thursday and Friday this week.
However, communities secretary Steve Reed has this afternoon confirmed that “all local elections” on May 7 “will now go ahead”. In a letter to council leaders, Mr Reed said: “I recognise that many of the local councils undergoing reorganisation voiced genuine concerns about the pressure they are under as we seek to deliver the most ambitious reforms of local government in a generation.”
Alongside this announcement the government confirmed £63m in new funding to help councils across the 21 reorganisation areas best deliver LGR, which is up from the £7.6m provided last year.
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Westminster City Council has proposed a 2% council tax rise this year and said it will not make use of a government exemption that would allow it to set an increase above the usual referendum limit next year.
The borough is set to raise its adult social care precept by 2% but freeze its main element for 2026-27 and utilise £19.7m of reserves.
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The government has published the expected next tranche of foundation strategic authorities, including Wessex and Kent & Medway, as it published proposed spatial development planning boundaries.
A consultation proposes eight new spatial development planning boundaries which are expected to cover the same geographic footprint as new devolution areas for foundation, or non-mayoral, strategic authorities.
In a letter to council leaders planning minister Matthew Pennycook and devolution minister Miatta Fahnbulleh said it was their “firm belief” that spatial development strategies and future devolution should align, which means the spatial planning consultation is “also an opportunity to agree the shape of devolution geographies”.
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Bedford BC is to undergo a best value inspection, while government commissioners at struggling Spelthorne BC have said its ‘improvement remains largely ahead’ of it.
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Leaving local authorities responsible for the remaining 10% of their Send deficits represents a “degree of carrot and stick” but the result was better than expected, according to a senior councillor.
The government announced it will cover 90% of historic special educational needs and disabilities deficits accrued up to the end of 2025-26, through a high needs stability grant in 2026-27.
At an event hosted by the Social Market Foundation yesterday Anya Sizer (Lab) deputy cabinet member for Send at Hackney LBC and a Send parent, said the announcement prompted “a large sigh of relief” within the borough.
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Legal fees in cases involving families of children with special educational needs and disabilities (SEND) have almost doubled in two years for Norfolk County Council. The Government this week announced it would be spending £5 billion to pay off 90 per cent of the debts English councils had built up through supporting young people with SEND to the end of the financial year. The announcement came days after the LGA warned that eight out of every 10 English councils would face bankruptcy if they had to honour deficits built up in recent years.
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The economy grew by 0.1 per cent in the last three months of the year, the Office for National Statistics said, which was slightly slower than economists had expected. The ONS said the overall picture for growth towards the end of the year remained “subdued”.
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Reorganisation is a very British triumph of efficiency over democratic accountability in relation to local government, writes the associate dean, School of Public Policy, at the LSE.
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The Local Government Association (LGA) has been accused of failing to take its own advice on employee relations in the aftermath of its disastrous restructure consultation.
A local government human resources (HR) expert, who asked not to be named, criticised the association for hiring consultants to look at pay scales when it advises the sector on pay.
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The Institute for Fiscal Studies has criticised “ad-hoc bolt-ons” for undermining the government’s aims for local government funding reform.
Responding to the final local government finance settlement, senior research economist Kate Ogden at the IFS said the introduction of the adjustment support grant, and the recovery grant uplift were issues and said: “It is a shame that the government has already seen fit to meddle with the outcome – before the new system has even started to operate.”
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A report by the think-tank Policy Exchange has found that spending on support for special educational needs and disabilities has risen by 65 per cent between 2018/19 and 2024/25 in the wealthiest half of council areas in the country, compared to an increase of 51 per cent in less affluent parts. Cllr Amanda Hopgood, Chair of the LGA’s Children, Young People and Families Committee, said: “The rise in need has left many councils buckling under the strain.?The Schools White Paper must deliver brave and bold reform where more children can get the?support?they need in a mainstream school, without needing a statutory plan.”
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Westmorland and Furness Council has said it “had no choice” but to increase council tax to the maximum 4.99 per cent following the Government’s final Local Government Finance Settlement. The LGA said while it was pleased about some aspects of the settlement, some councils would be “deeply concerned that the outcome has not provided sufficient resources to meet growing demand and cost pressures”.
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Two hundred hospitality and leisure bosses have called for the government to abandon plans for a “holiday tax” in England, which would allow local leaders to impose a visitor levy.
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An analysis looks at the different levels of council tax paid by people living in different areas, ahead of a rise in council tax in some areas in April, and calls to reform the system.
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Just days after the LGA warned that eight in ten English councils could face bankruptcy over SEND debts, the government has pledged to spend five billion pounds to cover 90 per cent of the deficits built up by authorities this year. Chair of the LGA, Cllr Louise Gittins, said the move recognised costs caused by a “broken system” but added that fully writing off historic and future deficits remained essential as ministers prepare wider SEND reforms
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School standards Minister Georgia Gould has said children would not be asked to leave special schools or lose existing support as reforms to special educational needs and disabilities are developed by the Department for Education. She said the Government plans three billion pounds of capital funding for specialist and mainstream provision, alongside extra staff training, so pupils get help earlier while special schools continue to play a central role.
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Seven councils have been granted permission for flexibility to raise council tax over the referendum limit.
The Ministry for Housing, Communities & Local Government has given Shropshire Council, North Somerset Council and Worcestershire CC the ability to raise council tax bills by an additional 4%
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The government will correct assumptions about the distribution of business rates revenues used in the local government finance settlement after experts warned they were “systematically” incorrect.
An explanatory note published alongside today’s final settlement says the “technical adjustment” will move money between councils in an area “towards councils responsible for social care, which is in line with our overall objective to get funding to where it is needed most”.
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The government had announced a £440m bump to the recovery grant for some upper tier authorities, taking the total funding up to £2.6bn over the multi-year settlement.
More than 150 councils with high levels of deprivation and little ability to raise revenue through council tax are to receive a share of the grant, which was valued at £600m in each year of the multi-year settlement in the first draft.
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A budget proposing a 3.89% council tax increase by Warwickshire CC's minority Reform UK administration has been defeated by rival parties.
The council's executive director for resources, Rob Powell, had warned that failing to increase council tax by the maximum 5% allowed without a referendum would take £26m out of the budget over five years.
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10 February 2026 By Kirsty Weakley
The £115m recovery grant uplift announced yesterday will be shared by 41 councils in 2026-27, most of which are Labour controlled, according to LGC analysis of government figures.
In 25 cases the amount that was allocated boosts the amount initially provided by over 50%.
Some 31 of the councils benefitting are Labour controlled, including Sandwell MBC, which is getting the largest amount at £6.7m in recovery uplift.
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Backlogs of unaudited accounts mean English local government ‘remains a cautionary tale', the head of the public spending watchdog will say today.
Head of the National Audit Office Gareth Davies will warn that ‘too often' the basic requirements of quality financial management are not being met, as proven by the whole of government accounts being disclaimed for a second year in a row.
In his annual speech to Parliament, Davies will focus on the importance of financial management and trust, as the Government has set a new framework for delivering 5% savings over the next three years.
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Rob Powell says he is ‘relieved and pleased that we now have a meaningful solution’ to English councils’ deficits relating to special educational needs and disabilities (SEND).
Addressing dedicated schools grant (DSG) High Needs Block deficits has been a defining priority of my year as Society of County Treasurers (SCT) President, so it is genuinely pleasing to be able to write a positive article on this topic following the final local government finance settlement. SCT members' mean deficit is forecast to be £210m when the statutory override ends in April 2028, with a median of £179m.
Readers of The MJ may well be tired of my repeated articles and calls to address High Needs Block deficits. As a former Audit Wales value for money director, I remain firmly opposed to negative reserves and statutory overrides that undermine basic accounting principles simply to avoid confronting the unintended consequences of a well intentioned policy shift. As I have said many times, kicking financial cans down the road only allows problems to grow, making them more complex and costly to resolve later.
SCT has consistently called for four steps to address the predictable and now disastrous consequences of the statutory override:
1. Reform the system sustainably, ensuring grant levels match the true cost of statutory provision.
2. Provide transitional funding to bridge the move from the current arrangements to a reformed system.
3. Develop a fairer funding formula, recognising that some councils—particularly counties—receive materially lower DSG and High Needs Block allocations per pupil than others. The f40 Group and SCT have repeatedly demonstrated the strong correlation between low per pupil funding and high deficits.
4. Ensure Government fully funds cumulative deficits, recognising that councils have effectively given the Department for Education an interest free loan, and ensuring that councils participating in Safety Valve are not disadvantaged.
On the first point, we understand the Schools White Paper is imminent. Following engagement, it is expected to propose measures to ensure the system better meets the needs of children and young people, makes navigation easier for families, and achieves financial sustainability and better value for money, given the poor outcomes currently delivered.
Transitional funding—our second ask—was announced in last year's Spending Review. The provisional settlement also signalled the Government's intention to review DSG and High Needs Block formulae. If a more up to date and equitable approach results, this could address our third point.
Most significantly, the final local government finance settlement announced the High Needs Stability Grant, which will provide councils with 90% of their cumulative deficit as at March 2026, subject to local SEND reform plans. CCN's recent research indicated those deficits were on course to reach £6.6bn by that point. Government has also indicated further support will follow in 2026/27 and 2027/28, which is vital given that deficits are forecast to continue rising—although the extent of this future support is not yet clear.
I want to recognise the excellent work of civil servants across the Ministry of Housing, Communities and Local Government, the Department for Education and HM Treasury for identifying and delivering such an impactful solution. Nico Heslop and his team may well be tired of hearing me raise SEND issues, but they have listened and acted, and this approach will make a very significant difference.
As Government has outlined, resolving deficits accrued up to the end of 2025 26 could reduce the cost of financing these deficits by an estimated £300m by 2027 28. This is revenue currently raised from council taxpayers, who should not be funding SEND provision. For my own council, this reduction in financing costs and improved treasury management returns will put a substantial amount of resource back into our MTFS.
Importantly, Government has confirmed that no local authority will be disadvantaged as a result of participating in the Safety Valve.
Some uncertainties do remain—particularly whether local SEND reform plans might be rejected, and what level of support will be available for the additional deficits that will accrue over the next two years.
Nevertheless, I am relieved and pleased that we now have a meaningful solution. Only a few weeks ago, when drafting my section 25 statement on the adequacy of reserves, I felt conflicted: with Government support for SEND deficits, I could confirm reserves were adequate; without it, deficits would soon exceed them. Thankfully, we now have clarity and a credible way forward. Let us ensure we never face a situation like this again.
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The government has said it has “heard” concerns the provisional local government finance settlement used incorrect figures for the distribution of business rates revenues through pools.
The Institute for Fiscal Studies this week warned the methodology to estimate the distribution of business rates revenues in 2025-26 “is likely to be systematically overestimating revenues for some councils and underestimating them for others”.
It said this could lead to the funding floors used in the settlement to provide transitional protection for some councils being set too high for the former, and too low for the latter.
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Over a third of councils surveyed by the Local Government Association are likely to apply for exceptional financial support to balance budgets in the next three years, said the LGA.
According to a new survey, 34% of the 154 respondents had already applied for government emergency financial bailout, or were very or fairly likely to do so, with 58% saying it would be very or fairly difficult to balance their budgets for the 2026-27 financial year.
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A Reform councillor, who previously held a cabinet position, has left the party over his administration’s plan to increase council tax.
Former deputy leader of Worcestershire CC David Taylor (Ref) quit the party live on BBC Politics Midlands yesterday morning.
Cllr Taylor, who was deputy leader until August last year, said: “I walked in today as a Reform county councillor but I won’t be leaving this studio as a Reform county councillor. I’ve had several issues with the running of the council from a political perspective and from an officer perspective.”
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Sir Keir Starmer will hand £440 million to dozens of handpicked councils in poorer areas after pressure from Labour MPs in the north.
Backbench Labour MPs said a change to the way council funding was allocated in the months after Angela Rayner resigned as deputy prime minister and local government secretary would make their areas worse off.
On Monday ministers will announce a £440 million fund to be spent over three years going to 42 councils — areas seen as needing an extra boost in support.
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The Local Government Association (LGA) is to commission an ‘independent external review' of its restructure plans in the wake of chief executive Joanna Killian taking ‘unexpected leave'.
Staff were told last week Killian would be taking time off ‘for personal reasons' amid the ongoing restructure, but that the consultation over the new operating model was still on track.
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The government’s approach to setting funding floors for councils has been called into question over how those involved in business rate pooling were assessed.
Analysis from the Institute for Fiscal Studies (IFS), published yesterday, said the methodology being used for 2025–26 “is likely to be systematically overestimating revenues for some councils and underestimating them for others”. This largely because of how Ministry for Housing, Communities & Local Government officials have estimated how authorities involved in business rates pooling will share funding.
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A survey of councils by the LGA has found that eight in 10 local authorities responsible for education services could face insolvency without a major financial bailout because of rising special educational needs and disabilities costs. The LGA is urging ministers to write off high-needs deficits and reform the system, while the Government says planned changes will focus on earlier support for children and long-term financial sustainability for councils. Cllr Amanda Hopgood, Chair of the LGA’s Children, Young People and Families Committee, said: “Councils are committed to supporting every child and young person to achieve their potential and clearly what is important is that children and young people get the support they need. But under the current system, the rise in support need has left many councils buckling under the strain.”
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Northern MPs have said that a new council funding formula favours London. Ministers are reported to be discussing possible changes with northwest MPs, after housing costs were given significant weight in the system designed to direct more money to areas with higher levels of need
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Communities have been called on to have their say on proposals to shake-up local government and improve public services in over a dozen areas.
Ministers have received a total of 52 submissions from local leaders in 14 areas including Devon, Derbyshire, and Kent relating to local government reorganisation.
These proposals show plans to simplify the needless duplication and reduce bureaucracy, and they have today (5 February) been put forward for local people, organisations, and businesses to have their say.
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The leader of Bedford BC's Conservative minority administration has pledged to ‘keep working with other parties' after its ‘sound' budget was rejected.
Speaking to The MJ after the late-night meeting, Graeme Coombes, said Bedford had historically kept council tax low, which was now causing financial problems.
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North Yorkshire Council is set to use £17m of its reserves and increase council tax by 4.99% in order to balance its budget for 2026-27.
Announcing proposed budget today, a briefing document said: “North Yorkshire Council is facing a £17m shortfall in the next financial year, and this will have to be covered by the authority’s financial reserves.”
Papers published ahead of next week’s full council budget meeting propose a total revenue budget of £650m.
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The Government has launched an £88 million initiative to recruit 10,000 additional foster carers in response to a long-term decline in carer numbers, aiming to modernise rules, broaden eligibility, and strengthen support for foster families. While fostering charities welcomed the ambition, many carers highlight that deeper systemic issues – such as limited support and rising living costs – continue to drive people out of the system, contributing to a nearly 12 per cent decline in approved carers over the past decade. Local authorities spent £4.7 billion on residential placements in 2022, according to the LGA.
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Councillors are pushing for the minimum pension age to be increased by two years for more officers amid fears about costs from local government reorganisation.
In its consultation on increasing the minimum retirement age in the Local Government Pension Scheme (LGPS) from 55 to 57 years old from 6 April 2028, Whitehall has proposed excluding people who were in the LGPS before 4 November 2021.
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Somerset Council is moving its budget setting timetable after the government shifted its final local government settlement publication back a week to 9 February.
The unitary is expected to find out if it will be able to increase its council tax by more than the maximum allowed without a referendum when final funding allocations are confirmed this month.
Last year the final settlement was announced on 3 February.
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Ministers have been warned that any reduction in legal rights for disabled children and their families would cross “red lines” as the Government plans significant changes to special education needs and disabilities (SEND) provision in England. The Disabled Children’s Partnership, representing over 130 charities, has expressed concerns that the upcoming reforms could undermine existing legal protections.
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Kent County Council has called on the Government to address the “unfair” cost of looking after child migrants.
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Bournemouth, Christchurch & Poole Council is asking for government permission to increase council tax above the referendum threshold to fund the interest costs on its special educational needs deficit.
The council has a historic Send deficit of £183.6m, with a forecast shortfall of £95.7m for 2026-27.
Although the statutory override keeps Send deficits off councils’ books until 2028, they have to pay interest on it, which BCP estimates to be £32m between April 2025 and March 2028.
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The Government is urging local authorities to use compulsory purchase powers to bring long-term vacant shops back into use to revive high streets.
Speaking to Times Radio on Sunday, Communities Secretary Steve Reed warned that many empty high street properties are owned by investment funds ‘who don't even know that they own it.’
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The Government has rebuffed calls for transparency around funding for food waste collections, insisting it is not in the ‘public interest'.
In response to a Freedom of Information Act request, the Department for Environment, Food and Rural Affairs (DEFRA) told chief executive of Wyre Forest DC, Ian Miller, it could not reveal details of an internal assessment of council funding carried out ahead of last year's Spending Review.
DEFRA's head of information rights, Damian Lynch, argued disclosure of the internal assessment risked ‘undermining the integrity of future fiscal processes by revealing the detailed internal cost assessments that inform Spending Review decisions'.
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There seems no proof yet that a penny has been added to the local government settlement. Even if funding has been provided, it has not reached all the councils that need it. It is axiomatic that no additional funding has been provided for any waste collection authority that is on the 0% or -5% floor for core spending power in 2026-27. They are left with the impossible choice between not meeting the statutory duty and cutting expenditure on other services to fund the new burden.
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Councils are spending £744 million a year on social care for asylum seekers, including funds for interpreters and services to help asylum seekers obtain healthcare, housing, education and legal services, according to a report by the Taxpayers ' Alliance. Research found local authority spending on social care for adult asylum seekers increased by 165 per cent since 2019/20, from £50.6 million to £133.9 million. Councils also spent £287.2 million on children who remain with their families, plus £322.6 million on unaccompanied children. Previous LGA warnings that growing demand for social care is a major cause of councils’ budget shortfalls is cited.
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More than three million people reportedly face council tax increases of up to 11 per cent from April. A government tender document published in December revealed the Ministry of Housing, Communities and Local Government is expecting at least 74 councils to need Exceptional Financial Support (EFS), an emergency government loan which can be used to cover the cost of day-to-day services.
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A new £150 million fund will help to “breathe new life back into our high streets”, Communities Secretary Steve Reed has announced. The multi-million-pound fund will be targeted at areas which have been hardest hit by high street shop closures, with communities able to use the money to re-open vacant units, spruce up high streets, and improve neglected shop fronts.
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Ministers are actively engaging with Labour MPs to garner support for proposed changes to the special educational needs and disabilities (SEND) framework, which would tighten eligibility for education, health and care plans. Concerns have been raised about the potential negative impact on children and families.
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The Government is preparing to roll out a further 500 universal free breakfast clubs in April, bringing the total to more than 1,250 across the country, with another 1,500 opening in September. The clubs are predicted to save parents up to £450 and 95 hours in childcare a year, which comes as new polling revealed lower income and single parents are more likely to be wary of stigma and feeling guilty for using government-funded support, such as breakfast clubs.
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