Remember when Rishi Sunak, as Conservative Prime Minister, openly admitted to changing council funding formulas
- Anna Turley
- Jun 23
- 1 min read
Remember when Rishi Sunak, as Conservative Prime Minister, openly admitted to changing council funding formulas to take money away from places like Redcar & Cleveland – just to hand it over to wealthier parts of the country?
It was shocking – but not surprising. And for years, our communities have paid the price.
That changes now.
Labour is putting things right with a full overhaul of the broken and outdated council funding system. The formulas used to decide how much funding councils receive are being rewritten – replacing decade-old data and unfair assumptions with a new system that reflects real needs, real demand, and real costs.
Under our plans:
Funding will be targeted at places with the greatest needs – recognising the challenges faced in both urban and rural areas
No more wasting time and money on endless bidding rounds for tiny pots of funding – that’s being scrapped
Councils will get multi-year settlements for the first time in over a decade – meaning stability and proper planning
And crucially, communities like Redcar & Cleveland will be prioritised, not pushed to the back of the queue
This isn’t just about money – it’s about fairness, restoring public services, and giving local councils the tools to deliver for the people they serve.
After 14 years of underinvestment, this Labour government is resetting the balance – and putting places like ours back at the heart of the map.
