The Central Westminster Government has confirmed a major boost to Peterborough City Council’s finances, offering long-awaited certainty and an increased budget for the coming years. The council’s Core Spending Power, which combines funding from the Government with income from Council Tax and Business Rates, is set to rise by £76 million by 2028/29 compared with 2025/26, representing a 31 per cent increase.
The funding uplift follows the Government’s Fairer Funding settlement, which revises how resources are allocated to councils across England and Wales. The revised formulas aim to direct more support to areas with higher levels of deprivation and increased demand for services.
Councillor Shabina Qayyum, leader of Peterborough City Council, described the announcement as “a hugely important moment for Peterborough and the most exciting Christmas present we could ever have hoped for.”
She expressed gratitude to the city’s MPs for advocating for fairer funding, stating, “For years we have called for further funding to help us pay for the increased demand on our services compared to other areas – we have finally been listened to.”
Councillor Qayyum highlighted the significance of a multi-year settlement, the first in a decade, which aims to simplify multiple funding streams and target resources towards areas of greatest need. She added that this stability will allow the council to plan effectively, safeguard essential services, improve financial health, and invest in priorities that matter most to residents.
This announcement builds on substantial additional funding already allocated to Peterborough in the past year. Examples include £40 million from the Pride in Place programme, £1.3 million for the ongoing Family Hubs programme, and a further £20 million committed by the Government’s Growth Mission Fund for a new city centre swimming pool. Together, these investments reflect a significant step forward in supporting local services and the long-term wellbeing of the city.
