The UK Government has confirmed the Final Local Government Finance Settlement, providing councils in England with around £78 billion in funding for 2025–26 to support day-to-day local services and respond to rising demand.

A £440 million increase to the Recovery Grant will be targeted at areas facing the greatest pressures, particularly councils that have experienced long-term funding challenges, with the aim of supporting essential neighbourhood and frontline services.

Councils will receive multi-year funding certainty for the first time in over a decade, supporting longer-term planning for local services such as transport, housing, employment support and youth-focused programmes.

The settlement will write off up to 90% of historic SEND deficits, easing financial pressure on local authorities. Additional funding for homelessness prevention, social care, and mayoral funding will support young people at risk