Local authority funding reform: objectives and principles

Overview

This consultation seeks views on the approach local authority funding reform through the local government finance settlement from 2026-27.

Scope of this consultation

This consultation seeks views on the approach to determining new funding allocations for local authorities and fire and rescue services. It covers:

• our guiding objectives and principles
• measuring differences in demand for services and the cost of delivering them
• measuring differences in locally available resources
• the New Homes Bonus
• implementing changes and keeping allocations up-to-date

It also covers:

• ways we can reduce demands on local government to empower them to deliver for communities
• sales, fees and charges reform

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