I hugely welcome this Labour Government’s announcement that Luton Council is set to receive a £139 million cash injection under the first multi-year local authority funding settlement in a decade.
Since I was elected to Parliament in 2019, I have made it my mission to champion local government and fight for fairer funding for Luton Council. I am delighted that under a Labour government these calls are finally being heard, and our area will benefit from meaningful investment after years of cuts and decline.
Under the previous Conservative and Coalition governments, local authorities were starved of investment. Luton Council had £170 million stripped from its budget over fourteen years, putting immense pressure on the delivery of vital local services.
This Labour government is turning the page on years of decline, announcing a radical overhaul of how local government is funded which will properly recognise local circumstances and the true costs of providing services in deprived communities.
Under this settlement England’s councils will get £84.6 billion for essential services, a 23.6% increase in core spending power compared to 2024-25, with more money going to places with the greatest need. The new system will level the playing field for councils across the country after an outdated system saw some build up savings while others faced financial collapse.
This funding injection is aimed at restoring pride and opportunity in places that have been left behind, giving councils the resources they need to bring back youth services, clean streets, and community hubs.
The money is part of the first multi-year funding settlement in over a decade, giving councils three years of financial certainty so they can plan ahead rather than firefight year to year.
Fair Funding is the next step on this government’s journey to reverse a decade and a half of austerity and decline under the Conservatives and build stronger communities in places like Luton.