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minister Luke Hall tweeted: 'These figures are pure speculation, calculated using a number of assumptions and outdated cost adjustments.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

How we manage LGR without losing focus on vital regeneration work is paramount

By Sheila Oxtoby | 25 March 2026

LGR is clearly a huge challenge, says Sheila Oxtoby, 'but we are determined not to lose sight of delivering on our key strategies via initiatives like Pride ...

FINANCE

Council tax goes up by £10bn in five years

By Paul Marinko | 25 March 2026

England’s council tax bill has gone up by more than £10bn in five years, new government data has revealed.

FINANCE

Ensuring Wigan has a big role to play in a digital future

By Cllr Nazia Rehman | 24 March 2026

Wigan is harnessing the regenerative power of AI with positive implications for the local economy, says Cllr Nazia Rehman.

FINANCE

Maximising the power of partnership and investment in the East Midlands

By Ann McGauran | 24 March 2026

A year into her role as the first permanent chief of EMCCA, Amy Harhoff is eying the prize of a single funding settlement. Ann McGauran reports.

Popular articles by Laura Sharman