ANALYSIS PROJECTS FUNDING GAINS FOR LABOUR COUNCILS

An analysis of House of Commons data projects changes to government funding for councils in England over this parliament. It estimates that Conservative and Liberal Democrat-controlled authorities will receive £478 million less in grants and other funding. Labour-controlled councils would receive £1.6 billion more under the projected allocations. The figures compare funding this year with funding in 2028/29. Labour says the shift would direct more support towards areas with higher levels of deprivation.

The analysis puts government-controlled funding for Conservative-run councils at £4.4 billion this year and £4.1 billion in 2028/29. It puts funding for Liberal Democrat councils at £3.9 billion and £3.7 billion over the same period. The corresponding figures for Labour councils are £10.8 billion and £12.3 billion. Birmingham Council, which declared effective bankruptcy in 2023, stands to receive the largest increase among Labour-run authorities. Labour linked the proposed shift to Andy Burnham’s pledge to deliver “good growth in every postcode”.

Conservative leader Kemi Badenoch called the projected redistribution “financial gerrymandering”. She said residents could face higher council tax and worse services if Conservative-run councils lost funding. Steven Broadbent, leader of Conservative-run Buckinghamshire Council, questioned whether the pledge extended to areas outside Labour control. Local leaders warned that funding cuts could put bin collections and pothole repairs at risk. The projections extend to 2028/29, leaving councils to plan services against the funding levels set out for the rest of this parliament.