Statement on provisional local government finance settlement 2026 to 2027

Cllr Richard Smith MVO, Suffolk County Council’s deputy leader and cabinet member for finance, economic development and skills, said:

“We are deeply disappointed by the government’s provisional local government finance settlement. Our current understanding is that Suffolk County Council now faces a £6 million budget gap — £3.5 million worse than we had previously forecast.

“This is despite government assumptions that councils will raise Council Tax by the maximum amount every year, and the introduction of a so-called ‘fairer’ funding model. In reality, the government has shifted resources towards metropolitan areas at the expense of rural counties like ours, while injecting very little new money into the system.

“This settlement makes an already difficult financial position even more challenging. We will continue to press for a genuinely fair funding formula that properly reflects the needs and costs of delivering services in rural communities.”