The Fair Funding Review 2.0
A consultation on the government’s proposed approach to local authority funding reform through the Local Government Finance Settlement from 2026-27.
This consultation seeks views on the approach to determining new funding allocations for local authorities and fire and rescue authorities, building on the local authority funding reform: objectives and principles consultation which the government has formally responded to in parallel.
This consultation covers:
- determining local authority funding allocations
- approach to consolidating funding
- measuring differences in demand for services and the cost of delivering them
- measuring differences in locally available resources
- the New Homes Bonus
- transitional arrangements and keeping allocations up-to-date
It also covers:
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long-term approach to the business rates retention system
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devolution and wider reforms, including how we can bring Strategic Authorities closer to the Local Government Finance Settlement
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ways we can reduce demands on local government to empower them to deliver for communities; and sales, fees and charges reform.
It invites views on the possible equalities impacts of these proposals.