England Council Funding Shifts Under Fair Funding Review 2.0
What happened
A government overhaul, the Fair Funding Review 2.0, is changing council funding across England for the period 2026-27 to 2028-29, allocating over £5 billion in new grant funding based on deprivation measures. Councils led by Labour are projected to gain £1.6 billion, while councils led by the Conservative Party or Liberal Democrats are expected to lose a combined £487 million over the same period. Birmingham is set to receive the largest increase, totaling £404 million.
Why it matters
The changes represent the first multi-year settlement for councils in a decade, shifting government-controlled funding toward more deprived areas. Opposition parties have accused ministers of favoring Labour-run authorities in the redistribution of funds. Wandsworth, a district of London, plans to raise Band D council tax.
Who's involved
- Conservative PartyThe political party whose members are involved in the funding overhaul.
- EnglandThe geopolitical state where the funding changes are being implemented.
- BirminghamA city receiving the largest increase in government-controlled funding.
- LondonThe city containing Wandsworth, which plans to raise council tax.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- EnglandSpeculative
Local councils across England might face changes in their operational costs and funding stability.
- WandsworthSpeculative
Wandsworth might see increased local revenue due to planned council tax increases.
Keep exploring
The entities involved
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Kemi Badenoch
British politician and Leader of the Opposition to the British Government (2024–present) and Leader of the Conservative Party since 2024 (born 1980)
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England
country in north-west Europe, part of the United Kingdom
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London
capital and largest city of England and the United Kingdom
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