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minister Luke Hall tweeted: 'These figures are pure speculation, calculated using a number of assumptions and outdated cost adjustments.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

Making care everyone's business

By Jess McGregor | 17 July 2026

Reform of adult social care will only succeed if it is built through a stronger public understanding of care as something that touches families, communities ...

FINANCE

The problem with housing: Viability

By Heather Jameson | 17 July 2026

Uncertainty, viability and devolution: local authorities face a collection of hurdles and opportunities when it comes to delivering much-needed housing. The ...

FINANCE

Expanded cities the winners in reorganisation plans

By Paul Marinko | 16 July 2026

The Government has backed expanded city authorities across the country with its announcement on local government reorganisation for remaining two tier areas.

FINANCE

The key to LGR success

By Jo Walker | 16 July 2026

Gloucestershire CC is calling for a comprehensive review of local government funding, greater local decision-making and a stronger partnership with central g...

Popular articles by Laura Sharman