Concerns are focused on what has been described as a last minute Government decision to increase the impact of housing costs in an updated formula for measuring deprivation which would determine grants to local authorities. Former deputy prime minister Angela Rayner announced the distribution of council funding would be changed this year to ensure funding was directed to areas with the highest levels of deprivation. Councils in London have been lobbying the Government to include housing costs prominently in the formula. Citing sources involved in negotiations, The Times said London councils were “very pleased” with changes to their funding, with “significant progress” made in how it would be allocated. “This proposal would allow London councils to continue to set very low council tax, effectively subsidising low bills for London residents.

Source: The Times October 29, 2025 12:14 UTC