Miatta Fahnbulleh

I thank the hon. Member for Runnymede and Weybridge (Dr Spencer) for opening this debate on the important topic of funding for local government in Surrey and for the thoughtful, constructive and eloquent way in which he made his remarks. I also thank him for acknowledging that we have inherited a very challenging context. I do not intend to do any party political back and forth, but the reality is that the inheritance was incredibly tough. We are working at pace to rectify that, in an impossible context for everyone involved. We share the hon. Member’s view that local government is on the frontline of delivering services to the people of this country. It can do so only when central Government works with it in partnership to overcome the shared challenges that we face. Our local government reforms, including funding reforms and reorganisation, will enable local councils that are empowered to deliver local services and equipped to drive economic growth and to work in the interests of their communities. That is a shared goal and a shared priority, and we will work with anyone across any political party in order to deliver it. I turn first to the local government finance settlement. I put it on the record that this is the most significant move yet to make English local government more sustainable. That is a core priority against the really tough backdrop that local authorities across the country are having to navigate. We are delivering fair funding, targeting more money to the areas that need it most and then putting in place multi-year settlements for the first time in a decade. That will give councils the certainty to make the longer-term calls so that they can take a more preventive approach and do less crisis management. For the local authority in Surrey, by the end of the multi-year settlement period in 2028-29 the provisional settlement makes available almost £1.5 billion of core spending power—an increase, in totality, of 7.3% compared with 2024-25. We acknowledge that there has been a cut in the core grant but, as has been the case for the past decade and a half, we look at the totality of core spending power, and it is going up. That does not in any way negate the fact that it is a tough context for local government to have to operate in, having had to operate in a really tough context for the past decade. However, we are trying to give sufficient flexibility in the approach that we are taking to enable local authorities to weather that. For the first time since 2013-14, the Government are updating the relative needs formula, which forms part of how local authorities’ funding allocation is calculated. That has involved using more up-to-date data, including the indices of multiple deprivation published in 2025, as part of our assessment of needs. We know that that is leading to a redistribution across the country that is tough for some authorities to absorb, but we think it only right and fair that we target more support to those authorities and communities that have huge levels of need and deprivation. I say that as an MP representing a London constituency. London is taking some of that hit, but we see that as fair across the country, because in the end what we care about is supporting the communities that need the most help.