To ask the Secretary of State for Housing, Communities and Local Government, with reference to paragraph 4.1.6 of his Department’s policy paper entitled Local authority funding reform: objectives and principles, published on 18 December 2024, whether the average council tax will be used as the assumed council tax metric.

No. Average council tax will not be the assumed council tax metric in the proposed funding reforms. Rather, the consultation proposes the government will take into account the tax base in each authority (i.e. the number of dwellings liable for council tax and in which band those dwellings are in) as part of the process of allocating grant, and not the council tax level set by a local authority. Following this consultation, we will develop, publish and consult on a detailed plan for local authority funding reform, including the assumed council tax level, ahead of the provisional Settlement for 2026-27.