Local Government Finance Report (England) 2026-27
277Ayes
143Noes
Carried · majority 134 · Government won227 did not vote
647 Members · Aye 277 · No 143 · DNV 227 · grey dots in centre are abstentions
Analysis
Commons
Commons
On 11 February 2026, MPs voted to approve the Local Government Finance Report (England) 2026-27, the annual settlement that sets out how much central government funding English councils will receive in the coming financial year. The motion passed by 277 votes to 143, with the government's position carrying comfortably. This settlement determines the baseline funding available to English local authorities for 2026-27, shaping their ability to deliver services ranging from social care and waste collection to planning and housing support. Councils that consider the settlement inadequate face difficult choices between raising council tax, cutting services, or drawing down reserves. The vote confirms the government's proposed allocation will stand, meaning councils must now set their budgets for the year ahead on this basis. The vote divided almost entirely along party lines. Labour and Labour and Co-operative MPs voted unanimously in favour, providing the government's majority. Conservatives, Liberal Democrats, and the three Reform UK MPs present all voted against, arguing the settlement falls short of what councils need. There were no notable rebels on either side. The vote took place on the same day as a related division on council tax referendum principles -- the thresholds above which councils must hold a public vote before raising council tax -- which also passed, reinforcing the government's overall approach to local government finance for the year.
Voting Aye meant
Support the Labour government's proposed funding allocation for English councils in 2026-27
Voting No meant
Oppose the settlement, likely arguing councils are underfunded or the distribution is unfair to certain areas
Each row is one party. The stacked bar gives the within-party split of Aye / No / Absent; the columns on the right give the raw counts. The whip column shows the published party position — “Free vote” means the whip was formally removed for this division.
Party
Whip
Aye / No / Abs
Aye
No
Abs
Labour Party
Whipped Aye
247
0
114
Conservative and Unionist Party
Whipped No
0
87
29
Liberal Democrats
Whipped No
0
51
21
Labour and Co-operative Party
Whipped Aye
27
0
15
Independent
—
3
1
9
Scottish National Party
—
0
0
9
Reform UK
Whipped No
0
3
5
Sinn Féin
—
0
0
7
Democratic Unionist Party
—
1
0
4
Green Party of England and Wales
—
0
0
4
Plaid Cymru
—
0
0
4
Social Democratic and Labour Party
—
0
0
2
Alliance Party of Northern Ireland
—
0
0
1
Restore Britain
—
0
1
0
Speaker
—
0
0
1
Traditional Unionist Voice
—
0
0
1
Ulster Unionist Party
—
0
0
1
Your Party
—
1
0
0
Source · Hansard · UK Parliament Votes API · whip status from announced positions; “free vote” indicates the whip was formally removed
Defends the settlement as restoring fairness by reconnecting funding with deprivation after 14 years of Tory cuts; announces £740m additional grant funding and £2.6bn recovery grant for most deprived councils.Labour · Voted aye · Read full speech (3,666 words) →
Opposes the settlement as leaving two-thirds of councils worse off; criticises shift of funding from statutory services to poverty-based allocations and attacks removal of rural services delivery grant.Conservative · Voted no · Read full speech (3,187 words) →
Welcomes multi-year settlements and SEND deficit relief but cannot support the settlement; criticises removal of remoteness funding and excessive reliance on council tax to balance budgets.Liberal Democrat · Voted no · Read full speech (1,939 words) →
As Chair of Housing Committee, welcomes fairer funding formula and SEND support but urges deeper reform of council tax and fundamental review of mandatory service demand on councils.Labour · Voted aye · Read full speech (1,863 words) →
Supports the 31% funding increase for Harrow but highlights ongoing council mismanagement, service failures in children's and adult social care, and continued need for scrutiny and oversight.Labour · Voted aye · Read full speech (2,371 words) →
Rejects settlement as failing rural authorities; argues removal of remoteness funding and rural services delivery grant amounts to pork-barrel politics favouring Labour urban councils.Conservative · Voted no · Read full speech (1,053 words) →
Questions why food waste recycling costs not met with traditional new burdens funding; highlights unequal treatment between Conservative and Labour council areas in Worcestershire.Conservative · Voted no · Read full speech (460 words) →
Criticises insufficient support for Shropshire despite inherited Tory mismanagement; notes council tax increases don't offset core funding cuts and rural costs are unaddressed.Liberal Democrat · Voted no · Read full speech (133 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0