Under the government’s Fair Funding Allocation, Waltham Forest’s core spending power is set to rise to £378.7m by 2028/29, an increase of 23.5% from 2024/25, reports Marco Marcelline
Waltham Forest Council will receive a funding boost of £175.5million over the next three years, after the Labour government revealed its long-awaited local government settlement plan.
The multi-million pound cash injection comes as Waltham Forest and other London boroughs have long complained of a real-terms loss in funding for years under outdated funding formula that does not take into account local housing costs.
Under the government’s Fair Funding Allocation, Waltham Forest’s core spending power is set to rise to £378.7m by 2028/29, an increase of 23.5% from 2024/25.
Council leader Grace Williams welcomed the “first multi-year settlement in a decade”, stating: “This means we will be able to make our resources go further and support more residents in need of help. It is also a positive that the deprivation measure used in the funding formula includes housing costs, which is so crucial for areas like ours.”
Ahead of the funding announcement, the council had petitioned the government for more resources, warning that previously revealed plans would have left the town hall at risk of losing £9.5m per year.
In a residents’ newsletter last month, Cllr Williams pointed to the borough receiving less money than neighbouring local authorities, including Hackney which has a public health budget more than double Waltham Forest’s, despite having an almost identical population.
Cllr Williams has routinely raised the “unsustainable” financial plight the borough faces due to spiraling social care and temporary housing costs. The council overspent last year by £24m in 2024/25.
Speaking to the Local Democracy Reporting Service in November, she painted a bleak financial forecast, stating the town hall could request exceptional financial support (EFS) from the government by the end of 2027.
She said: “Our core spending power has decreased by over 10% since 2010/11, when adjusted for inflation.
“At the same time, the demand for the services we provide has spiralled. There has been an 80% increase in demand for temporary accommodation over the last two years alone, and we are caring for more adults with social care needs than ever before.”
She added: “The fact that a well-run council like Waltham Forest is even considering an extreme move [like EFS] shows how serious the problem facing the local government sector is. This is a direct result of 15 years of inadequate funding.”
While the financial picture may be helped by the funding announcement, the council’s social care and housing responsibilities are still set to cause significant pressure.
Cllr Williams stated to the Echo: “We will do everything we can to fulfil both our moral mission and our financial duty to residents. We are working hard to balance our budget and secure our borough’s future – including seeking extra support from government, changing how we work to be more efficient, and putting a rigorous savings programme in place. But we will always be open and honest with residents – the financial challenge we face is still substantial.
Announcing the Fair Funding Allocation, Secretary of State for housing, communities and local government Steve Reed said: “This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.
“Today we’re making sure every community has the funding they need to succeed.”
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