Local government finance report 2026 to 2027: draft

This report sets out the aspects of the local government finance settlement for 2026 to 2027 which will require approval by the House of Commons at the time of the final settlement early in 2026.

It includes:

• the proposed Revenue Support Grant distribution
• the basis of the calculation of Baseline Funding Levels and ‘tariff’ and ‘top up’ payments that form part of the Business Rates Retention system
• the determination of the ‘central’ and ‘local share’ of business rates
• and the designation of business rates pools