The Funding and Sustainability of Local Government Finance

24-07-2025

Today’s report from the House of Commons Housing, Communities and Local Government Committee reinforces many of CIPFA’s longstanding concerns about the sustainability and fairness of local government finance.

CIPFA backs the Committee’s clear conclusion that the current system is outdated, overly complex, and no longer fit for purpose. The report’s emphasis on the urgent need for funding reform, alongside service transformation, aligns closely with CIPFA’s core policy positions.

CIPFA CEO Owen Mapley, said:

“CIPFA welcomes the Committee’s recognition that funding reform must go hand-in-hand with service transformation.

“Sustainable local government finance depends not just on multi-year funding settlements, stronger collaboration between central and local government, and a return to needs-based distribution with updated models and baselines — welcome as all these things are.

There must be an even clearer focus on service redesign to exploit new technologies and reform of the major services that are driving the increase in costs faced by all local authorities.”

CIPFA supports the Committee’s call for fairness, sustainability and greater local autonomy in funding — including reforming council tax, addressing deprivation and housing costs, expanding fiscal devolution and urgently resolving the ongoing SEND funding crisis.

Notes to editor