Local Government Finance Settlements

  • By London Councils

The local government finance team's work involves making the case for a fair and transparent funding system, which should reflect the unique service pressures facing London.

As part of this we provide briefings about and respond to consultations on the annual local government finance settlement, in which the government sets out its general revenue funding for local government.

Each year, usually in December, the Government publishes a provisional local government finance settlement for consultation. This is then debated in Parliament before the final settlement is agreed in February. Local authorities must then agree their annual budgets and set their council tax levels for the new financial year, which begins each April.

We provide briefings to officers on the day of the provisional settlement, and respond formally to the consultation on behalf of our member authorities in January. We provide information and analysis for our member authorities about the final settlement. We also provide briefings for MPs.

The latest Local Government Finance Settlement was published on February 6th 2020. It provided the highest uplift in local Government Funding for a decade, with London receiving an uplift of £446m in Core Spending Power, representing a 6.5% increase. Despite this, Core Spending Power in London is still  26.6% lower in real terms than in 2010-11.

Links to our work in this area can be found below.


Local Government Finance Settlements (LGFS) - Briefings and Responses:

LGFS 2015-16

LGFS 2014-15

LGFS 2013-14