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MNN UK · December 18, 2025 · 1 min read

New council funding deal redistributes cash based on deprivation levels

What happened: England's local councils have been allocated a new three-year funding settlement using a Fair Funding formula that prioritises areas with higher deprivation scores. Some of the most deprived councils will see increased funding, while others may receive less.

Why it matters:

  • The funding changes could affect local services and council tax rates across England.
  • Councils struggling financially may benefit, potentially reducing the risk of bankruptcy.

MNN Take: This funding approach aims to target resources towards areas with greater need, though it may lead to varied financial impacts for different councils and residents.

Sources: Guardian UK