Overview
- The provisional settlement allocates nearly £78bn next year and projects a roughly 23% rise in core spending power by the end of the multi-year deal.
- A revised formula shifts resources toward higher-need places, with the most deprived 10% of councils receiving about a 24% per‑head boost, while 33 authorities see spending power fall.
- Luton records the biggest projected increase to 2028/29, with strong gains in outer London and cities such as Manchester, Birmingham, and Derby, while Harborough faces a 15.8% reduction.
- Kensington and Chelsea, Westminster, Wandsworth, Hammersmith and Fulham, the City of London, and Windsor and Maidenhead are pre‑authorised for two years to exceed the usual 5% council tax limit, with ministers citing historically low bills and plans to reallocate over £250m.
- The IFS warns some areas, including Wandsworth and Westminster, could need steep hikes approaching 75% to offset lost grants, as unresolved pressures remain over SEND deficits nearing £14bn by 2028 and more councils weigh exceptional financial support.