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Portsmouth MP welcomes Labour Government’s action to fix unfair council funding for coastal communities

By 26 June 2025No Comments

Portsmouth MP Stephen Morgan has welcomed the Labour Government’s announcement that it will overhaul the way local councils are funded, fixing the unfair, outdated system left behind by the Conservatives and allocating money according to need.

The local government funding system will be reformed to get councils back on stable footing, improve the lives for people across the country and deliver essential funding for better public services, delivering on the Plan for Change.

Under the Conservatives, coastal areas were often overlooked and were less likely to get essential funding for local parks and libraries.

Labour kickstarted the work this year with the Recovery Grant to allocate funding based on fairness and need, with £600m for the most deprived areas.

The Government are now building that approach into the funding formula.

Labour will update the decade-old funding system to ensure that councils get the fair share of funding they need to deliver local services, specifically recognising the costs of delivering services in coastal towns and seafront communities.

For the first time, the Government will factor in seasonal demand from visitors and the cost of public services in coastal economies.

Alongside this, the Labour Government has also announced action to make things fairer for taxpayers by ending outdated rules for tax collection and spreading payments over 12 monthly bills as standard.

At the moment, those facing financial difficulty who miss council tax payments can be required to immediately pay the whole year’s sum, with bailiff’s being sent and no payment plan offered.

Under Labour’s plans, payment plans will now need to be offered, with councils working closely with those struggling with their bills.

Commenting, Portsmouth South MP Stephen Morgan said:

“For too long, coastal areas like Portsmouth have been left behind by a funding system that doesn’t reflect our needs. I’m pleased the Labour Government is putting that right by recognising our pressures and funding our services fairly.

“And it’s common sense to offer people a payment plan when times are tough. Labour’s reforms will finally make the system fairer for local people.”

A top priority of Mr Morgan’s is to ensure Portsmouth receives the investment it deserves. He has long campaigned for the city to receive funding to meet local needs.