Autumn Budget must provide the financial stability councils need

As we look ahead to the Autumn Budget, local government finds itself at an important moment. The past year has brought welcome progress, with a new funding settlement, continued support through the Recovery Grant, and a renewed recognition within Whitehall that funding must better reflect deprivation. This is not to mention the Prime Minister's broader focus on devolution.These are important steps forward, and the Special Interest Group of Municipal Authorities (SIGOMA) has worked hard alongside government to help secure them. Yet the reality facing many councils, particularly for SIGOMA members, remains challenging.For our members, the issue is no longer simply one of short-term survival as it has been in past years. It is about creating a funding system that is fair, stable, sustainable, and capable of meeting the growing demands placed on local services. This Budget is an opportunity to demonstrate that the Government understands that distinction.First, ministers must provide greater certainty over council funding. Multi-year settlements have been a significant improvement on the cycle of annual settlements that made long-term planning almost impossible. But councils need confidence that support will endure beyond the current spending period and that funding allocations will continue to recognise the realities faced by areas facing the greatest deprivation and demand.That includes the future of the Recovery Grant. It has been instrumental in beginning to provide support for many SIGOMA authorities after years of underfunding.Financial stability is not simply about balancing budgets. Councils need the certainty to plan beyond annual funding cycles, reshape services, and invest in approaches that manage demand more effectively over the longer term. Without that stability, authorities are forced to focus on immediate pressures rather than the longer-term change needed.It should no longer be viewed as a temporary intervention. Instead, the principles behind it must be embedded into the mainstream local government finance system, ensuring funding follows deprivation and demand as a permanent feature rather than a discretionary add-on. This is particularly important as local government funding growth becomes increasingly dependent on council tax, placing additional pressure on areas with the weakest tax bases, including many SIGOMA authorities.However, funding alone will not solve the deeper structural challenges facing councils. The most pressing issue is the growing strain caused by adult social care, children's social care, and Special Educational Needs and Disabilities (SEND). The current system is increasingly unsustainable for local authorities and, more importantly, for the families who rely upon these services.The government has begun outlining its approach to SEND reform, including proposals relating to high-needs deficits. While this is welcome, councils need clarity on the long-term plan and assurance that reforms will address the root causes of financial pressure rather than simply managing the consequences.The decision to write off 90% of historic SEND deficits up to March 2026 is a major intervention, but councils will still carry the remaining 10%, with no adequate solution yet announced for deficits continuing to build in 2026-27 and 2027-28. Financial stabilisation must therefore be the starting point for reform.Financial stability is not simply about balancing budgets. Councils need the certainty to plan beyond annual funding cycles, reshape services, and invest in approaches that manage demand more effectively over the longer term. Without that stability, authorities are forced to focus on immediate pressures rather than the longer-term change needed.Ultimately, SIGOMA's message ahead of the Budget is straightforward: protect the progress that has been made on fair funding as a minimum, put deprivation and demand at the heart of funding decisions, deliver meaningful reform of SEND and social care, and give councils the long-term certainty they need to plan, invest, and deliver sustainable local services.The Government has shown it is prepared to listen. Now is the time to take the next steps towards a fair, stable, and sustainable future for local government finance. Mayor Chris Cooke, chair of SIGOMA

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AUTUMN BUDGET

Autumn Budget must provide the financial stability councils need

By Chris Cooke | 19 October 2026

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