A UK government consultation on reforms to the English local government finance system will close soon. A report indicates that the proposed changes could produce major 'winners' and 'losers' among councils. The reforms aim to align funding with councils' spending needs. Significant cuts could occur for some councils while others may see substantial gains. The government plans to phase the reforms over three years and implement funding floors to assist councils facing reductions. Overall, most councils might experience an increase in funding, though some would face real-terms cuts.
The proposed reforms would create big 'winners' and 'losers', with some councils gaining substantially and others facing significant cuts.
The key benefit of the proposed reforms is that they would better align funding with updated official assessments of councils' spending needs.
If council tax rates were set to the national average, 85% of councils would receive a share of overall funding that is within 2% of their share of assessed spending needs by 2028-29.
Between 2025-26 and 2028-29, the average council is set to see an 8% real-terms increase in funding.
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