Local Government Finance Settlement 2024/25

This briefing paper sets out the core features of the Local Government Finance Settlement in 2024/25. The Settlement covers England only: local government funding is devolved to Scotland, Wales and Northern Ireland.

Local authorities in England are expected to have a total of £64.7 billion to spend in 2024/25, of which about £28.6 billion will come from various grants and £36.1 billion will come from council tax.

The 2024/25 settlement comprises the second year of a two-year settlement. A draft was published for consultation on 18 December 2023. The Government signalled in January 2024 that extra funding would be made available in addition to the amounts set out in December. The final settlement was published on 5 February 2024, including these extra amounts, and will be debated in the House of Commons on 7 February 2024. The analysis in this briefing is based on the final settlement.

This briefing paper explains the documentation published within the settlement process, and highlights the grants covered by the settlement. It provides a statistical analysis of the settlement in the context of previous years’ funding, and an outlook on likely future trends.

The paper provides brief details of the proposed thresholds for council tax referendums set out in the settlement, and the Government’s stance on ‘four-day weeks’. It also provides information about ‘section 114 notices’ and a Government consultation in December 2023 regarding using capital funding to support spending pressures.