Today (17 December 2025) Luke Myer MP has welcomed a major new funding settlement from the Labour Government that will see Middlesbrough Council receive a £75.1 million increase and Redcar & Cleveland Borough Council a £44.2 million increase for essential local services over the next three years.
The £119 million package represents a 41 per cent increase in spending power for Middlesbrough and a 27 per cent increase for Redcar & Cleveland compared to 2024/25.
The funding forms part of Labour’s long-awaited overhaul of local government finance, reversing years of decline that saw councils’ core spending power fall by around a quarter since 2010. The new Fair Funding system directs more money to areas with the greatest need, replacing an outdated model that left some councils hoarding reserves while others were pushed to the brink.
Across England, councils will receive almost £78 billion for essential services, alongside the first multi-year funding settlement in more than a decade. The three-year settlement gives local authorities the certainty to plan ahead, restore services, and invest in libraries, youth provision, clean streets, community hubs, housing, bin collections and children’s services. The reforms mark a shift to an evidence-based approach that properly recognises deprivation and the true cost of delivering services, with the aim of restoring pride and opportunity in communities that have been left behind.
Secretary of State Steve Reed said:
“This is a turning point, a chance to turn the page on a decade of cuts and callousness, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.
“For too long, deprived communities were left behind. Today we’re ending the postcode lottery so everyone can access the services their community deserves.”
Luke Myer MP said:
“After 14 years of austerity, Labour is putting money back into our local services. This massive £119 million cash injection for our area will make a real difference to people’s everyday lives, boosting the services we all rely on – from our high streets and libraries to our roads and cleaner streets.”