Inner London councils to lose funding as other cities gain, report says
Summary
A new government plan in England will change how councils receive funding, resulting in some inner London councils losing money while outer London areas and cities outside London, like Nottingham and Slough, gain more. The plan aims to better align funding with local needs by adjusting for factors like property values and local demand for services. These changes will start in 2026 and spread over three years.Key Facts
- Inner London councils like Camden and Westminster may lose 11-12% of their funding.
- Outer London areas and cities like Nottingham and Slough will likely get more funding.
- The Institute for Fiscal Studies (IFS) report predicts a £2.1 billion redistribution in government funding.
- New formulas will consider property values in council tax bands and business rates.
- The changes aim to provide more funds to areas with high demand for services and lower income.
- Some shire district councils may lose funding, while others in urban areas might benefit.
- The government says the update is to fix outdated systems and match funding with service needs.
- The plan will be finalized later this year and phased over three years starting in 2026.
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