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This paper provides background to a debate in the House of Commons on the final Local Government Finance Settlement 2021-22, scheduled for 10 February 2021. The House of Commons must approve the settlement before it can take effect.

The provisional Settlement was published on 17 December 2020, and debated on the same day in the House of Commons. The final settlement documentation was published on 4 February 2021.

Local government is devolved to Scotland, Wales and Northern Ireland. The Local Government Finance Settlement, and this paper, apply to England only.

This paper sets out a statistical analysis of the proposed 2021-22 settlement; an explanation of the Government’s decision-making process regarding the structure of the settlement; and details of the proposed referendum thresholds for 2021-22.

A dashboard showing historical figures for local government finance settlements is available on the House of Commons Library’s website.


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