Provisional Local Government Finance Settlement 2026-27: Greater Manchester

The Government are making good on long-overdue promises to fundamentally update the way that we fund local authorities. We are re-aligning funding with need and deprivation through the first multi-year local government finance settlement in a decade. The provisional 2026-27 settlement will make available almost £78 billion in core spending power for local authorities in England. For Greater Manchester authorities, it makes available up to £3.92 billion in core spending power in 2026-27, an increase of 16.4% compared to 2024-25, which is a real-terms increase.

Fourteen years of Tory austerity saw harsh cuts to local government finances, which left our public services on their knees. This latest funding settlement by the Labour Government goes a long way to right the wrongs of the Tories, and to help local authorities deliver quality services for our constituents once again. I thank the Secretary of State for giving Manchester city council a £331 million cash injection, but does the Minister recognise that the council still faces huge pressure to meet needs, including those related to social services and education?

As I have said in this Chamber a number of times, we can provide substantial increases to councils, as we need to, and it is very important that we do in places like Manchester, but unless we have a more preventive approach—for example, unless we stop children being taken into care, or stop councils facing really big challenges—councils will still face spiking costs. I look forward to working with my hon. Friend and colleagues across Greater Manchester on making that work.