Last week, we submitted a detailed response to the government’s Fair Funding Review, calling for a funding system that reflects the real needs of the North, supports the long-term sustainability of councils and enables them to deliver the services their communities value.

In our submission, we said:

The North Has Shouldered the Heaviest Cuts
Since 2010/11, local authorities in the North have seen a 30.2% drop in net expenditure—more than the national average. These cuts have hit non-statutory services hardest, from street cleaning and community safety to libraries and housing strategy. We believe the Fair Funding Review must address this imbalance and restore spending power in these areas.

Homelessness Costs Are Escalating
Spending on homelessness and temporary accommodation in the North has more than trebled in five years, now exceeding £270 million annually. We support proposals to simplify funding streams and giving councils the flexibility to respond effectively, but funding allocations will need to reflect the scale of the challenge.

Reinvesting in Housing Capacity
To ensure that councils can support the government in delivering its 1.5 million home target, both directly through building new council homes and working with the private sector, we’re calling for dedicated funding to rebuild housing and planning capacity within councils—supporting the delivery of new homes aligned with local priorities. Between 2010/11 and 2024/25, net expenditure on housing strategy, enabling and advice has fallen by 71% in real terms, while expenditure on development control, building control and planning policy has fallen by 51%.

The Area Cost Adjustment (ACA) Needs Reform
Under current proposals, the ACA will result in a reduction of funding for the most deprived areas. Of the 79 authorities set to lose out, 46 are in the North. Instead, the ACA should explicitly consider deprivation as part of its calculations or introduce a funding floor to protect the poorest areas.

Statutory Duties Risk Crowding Out Community Services
The growing burden of statutory services—especially adult and children’s social care—is squeezing out investment in wider services that are highly valued by residents across the North. Expenditure on cultural and related services (community centres, libraries, heritage, recreation etc.) has reduced by 45% in real terms since 2010/11. Statutory services provide vital support for some of the most vulnerable in society, but this overwhelming burden and the subsequent reduction in non-statutory service provision risks eroding public trust and community cohesion.

We Need Long-Term Investment in Local Services
Restoring funding for non-statutory services to 2010/11 levels would cost £1.1bn annually—just 3.3% of the North’s local authority revenue budget. This investment would be transformative, helping us rebuild pride in place and support better homes and neighbourhoods.

 The Fair Funding Review is a critical opportunity to reset the balance. We’re calling on government to ensure that funding reflects the real challenges the North faces and empowers our members to build and support great places across the North.

“This is a key moment for housing and local government in the North. If we want to build thriving communities, improve housing quality for private renters and deliver the homes people need, restored council capacity will need to play a key role in delivery. The Fair Funding Review is a great opportunity to put local authorities on a more sustainable financial footing and in a position to deliver on the government’s agenda across this parliament.”
Tracy Harrison, Chief Executive, NHC