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minister Luke Hall tweeted: 'These figures are pure speculation, calculated using a number of assumptions and outdated cost adjustments.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

Councils' financial pressures: The story behind rising EFS demand

By Joanne Pitt | 27 July 2026

Analysis by CIPFA of requests by councils for exceptional financial support (EFS) shows some are stabilising their position and fewer are citing commercial p...

FINANCE

The New Towns ambition: Is it enough?

By Philip Allin | 24 July 2026

Government's new towns programme needs broader locations, stronger delivery, and strategic infrastructure to succeed nationally, says Philip Allin.

FINANCE

With political change comes opportunity

By Cllr Eamonn O'Brien | 23 July 2026

In his first column for The MJ, chair of the Local Government Association Cllr Eamonn O'Brien says that, unless we act now, the country risks entering the 20...

FINANCE

Reorganisation repercussions

By Paul Marinko | 23 July 2026

Following the latest round of local government reorganisation last week, ministers claim the new unitaries will boost growth and strengthen our cities but no...

Popular articles by Laura Sharman