Luton MPs have hailed a £139million funding boost from the government, with one saying it will mark a turning point for the town after years of constrained budgets.
Luton Council is set to receive the injection under the government’s Fairer Funding Settlement, the first multi-year local authority deal in more than a decade, which will provide the resources they need to bring back youth services, play parks, clean streets and community hubs.
Ministers have said the new system is designed to better reflect deprivation and the real cost of delivering services.
The settlement, which will run for several years rather than a single financial year, is being billed as a break from what Labour describes as an outdated funding model that left some councils building reserves while others faced mounting financial pressure.
Nationally, England’s councils will receive £84.6 billion for essential services, a 23.6 per cent increase in core spending power compared with 2024–25, with a greater share directed to areas judged to have the highest need.
Luton South MP Rachel Hopkins said: “I hugely welcome this Labour government’s announcement that Luton Council is set to receive a £139 million cash injection under the first multi-year local authority funding settlement in a decade.
“Since I was elected to Parliament in 2019, I have made it my mission to champion local government and fight for fairer funding for Luton Council. I am delighted that under a Labour government these calls are finally being heard, and our area will benefit from meaningful investment after years of cuts and decline.”
Ms Hopkins contrasted the new settlement with the impact of previous administrations on local finances.
“Under the previous Conservative and Coalition governments, local authorities were starved of investment. Luton Council had £170million stripped from its budget over 14 years, putting immense pressure on the delivery of vital local services,” she said.
“This Labour government is turning the page on years of decline, announcing a radical overhaul of how local government is funded which will properly recognise local circumstances and the true costs of providing services in deprived communities.”
The MP said the move to a multi-year settlement would give councils greater stability.
“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,” Ms Hopkins said, adding that the funding was aimed at “restoring pride and opportunity” by supporting youth services, cleaner streets and community facilities.
In a published speech on her website, Ms Hopkins added: “In Luton, this will make an incredible difference, with the first funding settlement linked to deprivation meaning our council will benefit from £139.3 million over the next four years,” she said.
“This will be vital in beginning to reverse decades of decline caused by Tory austerity and allow the Council to provide the public services my constituents deserve.”
She also highlighted the scale of the increase compared with previous settlements in a social media post, describing the £139 million allocation as a 63 per cent rise on the last multi-year deal agreed under the Conservatives.
Support for the settlement was echoed by Luton North MP Sarah Owen during a House of Commons debate on Thursday.
“Outside the political bubble, many people, particularly those who have struggled over the past few years to get the local services that they need on their doorstep, will welcome the idea of a modernised local government system, but this is also about funding,” she said.
“Luton North deserves more than just the bare essentials. That is why I welcome the 63 per cent increase in multi-year funding, compared with the previous government’s cuts of over £116million to our town.”
Ms Owen said the funding should help restore local amenities and give councils the tools to deliver.
“Areas like my town of Luton not only deserve every single penny, so that we can bring back our play parks, our high streets and our local assets, but deserve the mechanisms to deliver for people,” she said.
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