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minister Luke Hall tweeted: 'These figures are pure speculation, calculated using a number of assumptions and outdated cost adjustments.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

Restoring the third pillar of local authority finance: citizen investment

By Karl Harder | 23 April 2026

Karl Harder looks at the benefits of citizen investing.

FINANCE

Local government: riding the wave of change

By Jonathan Carr-West | 22 April 2026

Jonathan Carr-West looks at the challenges of leading councils through turbulent times.

FINANCE

MPs call for 'effective sanctions' on B&B use councils

By Joe Lepper | 22 April 2026

Councils that repeatedly fail to end the use of bed and breakfast (B&B) accommodation for families facing homelessness should be hit with ‘effective sanction...

FINANCE

How we delivered the Youth Investment Fund in Blackburn with Darwen

By Imran Akuji | 21 April 2026

Delivering the Youth Investment Fund in Blackburn with Darwen required a deliberate shift in the council’s role from lead applicant to system steward, says I...

Popular articles by Laura Sharman