Spending Review 2025

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.

Purple banner showing icons of graphs and charts and a pound sign

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.

Highlighted pages

Spending Review 2025: Briefing 12 June 2025

A summary of the key announcements in the 2025 Spending Review relevant to local government.

Joint statement: Investing in adult social care for people and communities

As organisations spanning the breadth of the adult social care and support sector, we stand ready to work with the Government, and on a cross-party basis, as equal partners, to bring about the longer-term changes that are needed to build a care and support system that enables everyone to live the life they want to lead.

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.

Local government budget setting 2025/26

This research report presents the findings from an online survey of chief finance officers conducted by the LGA in January 2025.

Tackling poverty and disadvantage 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.