Local MP Stephen Morgan has welcomed the Labour Government’s announcement that Portsmouth will get a £62m cash injection for essential services – a 28% increase in the Council’s spending power.
Under the Tories, local authorities were starved of investment, with core spending power down by around a quarter since 2010. That put immense pressure on councils up and down the country, including Portsmouth City Council.
But the Labour Government has announced a radical overhaul of how local government is funded, reversing Rishi Sunak’s cheap political efforts to put money into wealthy shires and Tory seats.
Fair Funding is the next step on Labour’s journey to reverse a decade and a half of austerity and decline under the Conservatives, and build stronger communities.
England’s councils will get over £20 billion for essential services with more money going to places with the greatest need.
The funding injection is aimed at restoring pride and opportunity in places that have been left behind, to get back what has been lost. Councils will have more resources available to bring back libraries, 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.
In total, councils will see a £6.8% per cent increase in their core spending power compared to 2024-25 to pay for services including bin collections, housing, and children’s services.
And in a turning point for the way local government is funded, the outdated system that saw some councils build up savings while others faced financial collapse has been replaced.
Instead, places are now being funded using an evidence-based system that properly recognises local circumstances and the true costs of providing services in deprived communities.
Portsmouth’s £62m funding increase comes following Portsmouth South MP Stephen Morgan’s campaigning for investment in our city and extra local government funding for Portsmouth to deliver essential local services.
Commenting, Stephen Morgan MP for Portsmouth South, said:
“After strongly advocating for our city to receive a fairer sum of local government funding, I welcome today’s announcement that Portsmouth City Council will be receiving an additional £62 million over the duration of this parliament.
“This is the change Labour promised, reversing 14 years of austerity under the Conservative government.
“This will be able to boost the local services we rely all upon and address issues, like high street decline and housing availability, that I know matter most to Portsmouth people”.
Labour Secretary of State for Housing, Communities and Local Government Steve Reed said:
“This is a turning point, a chance to turn the page on a decade of cuts and callousness, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.
“For too long, deprived communities were left behind. Today we’re ending the postcode lottery so everyone can access the services their community deserves”.
