Annual local government finance settlements
The Government strategically decides how much funding will be available for local government (and other public services) through spending reviews. Decisions about how the total funding is divided are announced in the annual finance settlement.
Announcements about Government funding for councils have traditionally been made in December and finalised early the following year. The annual local government finance settlement announces formula grant allocations on an individual council basis, with the total grant divided among councils on the basis of a complex formula that seeks to take into account the relative needs and available resources of different councils. Other departments will typically make announcements about the distribution of specific grants at a similar time to the finance settlement.
In February 2016 DCLG published a four-year settlement offer to councils. In order to accept councils are required to publish an efficiency plan and notify DCLG by 14 October 2016.
1 February 2017