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Policy

Funding Local Government

Local Government Funding Local Government

Policy:

Any proceeds from a capital asset sale by a council needs to be added to the capital budget as a new item to fund a long term asset for the council.

Sale of Capital Assets

Lately there has been approval from central Government to allow councils to sell Allotments, to help fund the annual spending gap.

This practice should stop in that any proceeds from a capital asset sale by a council needs to be added to the capital budget as a new item to fund a long term asset for the council.

Local Government Funding

Central Government Funding amount to £2 Billion plus the revenue it receives from Council Taxes, Business Rates and Fees & charges from services like parking, planning and leisure facilities.

Despite increased funding, councils face rising costs and demand pressures. The Local Government Association (LGA) warns of a potential £8 Billion funding gap by 2028/29 if current trends continue

SOURCE: Spending Review 2025 Link Author: Local Government Association

Review of Expenditure

SOURCE: Local authority revenue expenditure and financing: 2025-26 budget, England Link Author: Ministry of Housing, Communities & Local Government GOV.uk

Summary of that report:

Service Area Budgeted Net Expenditure Key Notes
Education Services £45.8 Billion Includes early years, primary, secondary, and special education. Early Years saw a 34.5% real-terms increase.
Adult Social Care £26.7 Billion Covers care for older people and adults with disabilities. Excludes NHS funding.
Children’s Social Care £15.5 Billion Includes child protection, fostering, and adoption services.
Housing Services £3.2 Billion Includes homelessness support, temporary accommodation, and housing advice.
Public Health Funded via ring-fenced grants Covers health promotion, substance misuse, sexual health, etc.
Highways and Transport Varies by authority Includes road maintenance, street lighting, and public transport subsidies.
Environmental Services Varies Waste collection, recycling, street cleaning, and environmental health.
Planning and Development Varies Local planning, building control, and economic development.
Culture and Leisure Varies Libraries, museums, parks, and sports facilities.
Corporate Services Varies Includes IT, HR, legal, and finance functions.
Annual Expenditure Increase of £1 Billion