Title

FINANCE

Poorer areas to lose 'hundreds of millions' under proposed changes

Former Labour stronghold areas are to lose millions of pounds under the fair funding review, analysis by Local Government Association's Labour group has found.

Former Labour stronghold areas are to lose millions of pounds under the fair funding review, analysis by Local Government Association's (LGA) Labour group has found.

The analysis suggested that more than 70% of new Tory MPs will represent communities hit hardest by forthcoming changes to the way council funding is allocated.

It claimed that metropolitan councils will lose almost £300m in adult social care funding under the proposals, with £250m being diverted to Tory shire county councils.

Labour's shadow local government secretary, Andrew Gwynne, said: ‘The fair funding review has been exposed as just another Conservative plan to take hundreds of millions from deprived communities and funnel it towards leafy Tory shires.

'In the new Parliament 37 Tory MPs represent communities at the sharp end of these cuts.

'They know these changes are wrong so it's time for them to decide what comes first - their communities or their careers?'

Leader of the LGA Labour group, Cllr Nick Forbes, added: 'Labour councils have been warning about these Conservative plans for a funding stitch up for more than a year and these new figures confirm our worst fears.

'We are issuing a direct challenge to these new Tory MPs to put their communities before their careers and join Labour in opposing these outrageous cuts.'

However, local government minister Luke Hall tweeted: 'These figures are pure speculation, calculated using a number of assumptions and outdated cost adjustments.

'I would urge all councils to use official Government data for their planning.'

A spokesman for the Ministry of Housing, Communities and Local Government said: 'As the LGA has made clear, these figures do not represent their policy and are based on a number of assumptions.'

FINANCE

Will Makerfield change Westminster?

By Donna Hall | 19 June 2026

Donna Hall asks if Andy Burnham can reconnect power with people.

FINANCE

Turning neighbourhood health from policy into practice

By Helen Bromley | 19 June 2026

The chairs of Cheshire and Merseyside’s All Together Fairer Board and Neighbourhoods Task and Finish Group set out how the subregion’s neighbourhood approach...

FINANCE

Reshaping funding in Wales

By Paul Marinko | 18 June 2026

Wales’ local government minister Siân Gwenllian has confirmed work is underway on a review of the funding formula, alongside plans to boost housing delivery ...

FINANCE

Don't freeze regen after the elections

By Sir Michael Lyons | 17 June 2026

If we want regeneration to deliver at scale, momentum cannot pause every time leadership changes, explains Sir Michael Lyons.

Popular articles by Laura Sharman