SIGOMA Chair: 'The level of funding is inadequate for the pressures facing the sector'

Posted on January 13, 2026

As sector leaders reflected on the challenges and priorities for the year ahead, our Chair spoke to the LGC about the pressures facing councils in 2026 and the need for sustainable local government funding:

“Unfortunately, there is little doubt that 2026 will be another difficult year for local government finances. While the Fair Funding Review will ensure that the system is overall aligning funding more closely with need, the simple fact is that level of funding is inadequate for the pressures facing the sector.

While the official rate of inflation may be coming down, this means little for local authorities grappling with soaring demand-led pressures and pay pressures that will wipe out a high proportion of any additional grant funding in the coming years. The small increase that there is over the next three years is mostly from assumed increases in council tax.

Hopefully, the government have the courage to grasp the nettle and begin to look properly at reforming council tax. This is becoming increasingly important as the receipts from council tax have risen rapidly in recent years with this regressive tax disproportionately impacting the least able to pay it.

By 2028-29, council tax will likely be raising almost £50bn, around double that collected in 2016-17. The other hope I have is that Send deficits are also dealt with and along with the rest of the sector I will be hoping for positive news when an update is provided at the final settlement.”

You can read the full article in the LGC  here.