Cash-strapped Wirral Council has been dealt a blow from the Government's changes to town hall funding.
The so-called 'fair funding' changes mean that Wirral will now receive less money than anticipated and less than planned by the previous Conservative Government.
The changes, announced just a few days before Christmas, add to the cash crisis in the Town Hall - already facing rising debt and continued reliance on 'exceptional' support to balance its budget.
- Wirral Globe: £67m budget shortfall over next three years (10 December 2025)
- Birkenhead News: income drops at Council (12 June 2025)
- BBC: Council debt increases by £233m in six months (21 June 2025)
In response to earlier financial difficulties, the previous Government agreed to provide £20 million in 'Exceptional Financial Support' for the 2024-25 financial year, with an additional £7.5 million for 2025-26.
This support was aimed at helping the council balance its budget amid rising demands for services, particularly in social care.
Wirral set to be worse off by £12m
Many in the Town Hall were pinning hopes on the new 'Fair Funding Formula' from the Government increasing the basic grant given to councils, on top of council tax and business rates raised locally.
However, government funding for Wirral is now projected to be cut by £8 million in 2027/28 and a further £3.9 million in 2028/29.
London and South East to gain under Labour's changes
The major losers are Trafford, Wigan, Sunderland, South Tyneside, Gateshead, Knowsley, Stockport, St Helens, Wirral, Sefton and North Tyneside. A lot of places we might call “Labour heartlands”.
The New Statesman reports: 'The nub of the changes is that Steve Reed, when he replaced Rayner as housing secretary, changed the criteria for deprivation to add housing costs into the mix (along with other changes relating to remoteness and population). This was done after lobbying from MPs in London and the south east. And voila, the new formula ended up giving millions more in core spending power to places in London and the south east.
Uncertainty also persists around business rates income for the council due to revaluation and transitional arrangements, which will the Government has said will not be confirmed until late January 2026.