Provisional local government finance settlement: England, 2026 to 2027

Overview

This consultation seeks views on the proposals for the Local Government Finance Settlement for 2026-27. 

The Local Government Finance Settlement (‘the Settlement’) is the annual process through which central government allocates funding to local government for the provision of local services in England. The Settlement consists of allocative grant funding, council tax and locally retained business rates.  

The 2026-27 Settlement will be the first multi-year Settlement in a decade, running from 2026-27 to 2028-29. Alongside this consultation, we will be setting out provisional allocations for all three years of the multi-year Settlement.

What happens next

The consultation will close on 14th January. Following consultation, the government will determine the final amounts of the Revenue Support Grant, and the Section 31 grants distributed alongside the Settlement, and their allocations to receiving authorities and the specified body, as part of determining the overall allocation of this year’s Settlement made to each local authority in England for 2026-27. At this time, the government will also set out the allocations for 2027-28 and 2028-29, which will be subject to consultation in future years, as required.