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The LGA's Spending Review 2025 submission outlines the important contribution of councils and how they have a vital role to play in the Government’s reform and growth agenda. But councils can only deliver if we are given the necessary financial stability as Government makes decisions about the nation’s finances.
Our Spending Review 2025 submission letter to the Chancellor and accompanying annexes set out our new analysis that councils could face a funding gap of more than £8 billion by 2028/29 without adequate additional funding. If current cost and demand trends continue, by the end of 2028/29, these pressures would add £21.4 billion to the cost of delivering council services since 2024/25 – a 29.8 per cent increase in service costs.
Without urgent action in the Spending Review, not only will many councils face impossible choices on what desperately needed services they can provide in the future, but also the opportunity to boost growth and reform may be missed.
Key highlights in our Spending Review submission include:
We will continue to engage across our various channels and with Government and Parliamentarians for a longer-term, sustainable funding environment for local government.
Get involved
You can get involved by sharing our content from our LGA social media channels (X, LinkedIn, Bluesky, Threads and Facebook) and downloading our resources and assets. We’re also amplifying our content using the hashtags #SpendingReview and #LocalGovTogether in partnership with other organisations.
Media releases
You can share our media content from below and via our LGANews X account.
- Spending Review: Plug £452 million bus pass shortfall to boost economy and protect routes
- LGA statement on NAO report on local government finances
- Spending Review: £76 million funding gap in councils' temporary accommodation budgets
- Spending Review: Councils could face £8bn funding black hole by 2028/29
- The LGA has sent its submission to HM Treasury as part of the UK Government’s Spending Review
Highlighted pages
Spending Review 2025 submission: Letter to the Chancellor
We are proud to represent the interests of local government in England and the people it serves. It is against this backdrop that we are pleased to submit evidence on behalf of our members to inform Phase 2 of the Spending Review.
Spending Review 2025 submission: Annexes
The LGA's submission provides a clear business case for increased investment, financial support and a package of measures to give our members more tools to help communities thrive.
Cost of living hub
Councils and local partners have delivered remarkable services and support to protect their residents against higher costs, targeting help at those facing the most complex challenges. This hub is designed to share best practice and help councils support their residents through this difficult time.