Steve Reed

Steve Reed

Labour (Co-op) — Streatham and Croydon North

Speaking in the House of Commons on 11 February 2026

Debate

Local Government Finance

Contribution

Well, the easy answer to that is that it has not been; it is still there. Above all, this settlement is about fairness, because this Government reject the Tory belief that our poorest communities should be left to sink with less funding and worse public services than other parts of the country. That approach pulled our country apart; and, in doing so, was profoundly unpatriotic. Our settlement reflects a council’s ability to raise income locally, and it reflects the fact that it costs more to deliver services in different parts of the country, retaining rurality funding for social care, because we recognise that workers in those areas have to travel longer distances. We have used the most up-to-date data on deprivation to make sure funding accurately follows need. We are introducing changes gradually over the period of the settlement so councils have time to adapt, and we are protecting councils’ income, including from business rates growth. Today’s settlement is a milestone in returning councils to a sustainable financial footing, and in restoring fairness to local government funding.

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