Provisional finance settlement: councils receive £700m funding boost but concerns remain

Local authorities are set to receive an additional £700m in funding under the provisional local government finance settlement, including compensation for the rise in employer National Insurance Contributions (NICs), but no IFRS 9 extension.

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Announced today (18 December), the provisional settlement for 2025/26 offered local authorities £69bn in funding, representing a 6% cash terms increase and a 3.5% real terms

Provisional finance settlement: councils receive £700m funding boost but concerns remain

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