Cash-strapped Stoke-on-Trent City Council will see its 'spending power' increase by nearly £80 million by 2028, the government has announced.

Local authorities have been told the funding they can expect to receive over the next three years with the publication of the provisional finance settlement.

The Labour-run city council will see a 25.1 per cent of its core spending power over this period compared to 2024/25.

Core spending power is meant to reflect the total amount of funding available for council services, including government grants.

But 32.9 million of the £77.7 million increase in the city council's spending power will come from council tax rises – the government's calculation assumes authorities will approve the maximum tax increase each year.

As well as introducing multi-year settlements and a more streamlined funding system, the Labour government says its 'fairer' settlement will divert funding towards more deprived areas.

Stoke-on-Trent is in the 10 per cent most deprived areas of the country, while the city council has received £59 million in emergency bailout loans over the last three years, mainly due to the rocketing cost of children's services.

Council leader Jane Ashworth welcomed the funding announcement.

She said: "This settlement shows the difference a Labour government makes. After 14 years of Tory austerity, this settlement brings more money to our city. It is right that cities our city stand to benefit from this boost – rather than the leafy shires that gained under previous Conservative governments.

"There is more to do but this is a clear break from the past and gives us a stronger platform to protect services and invest in our city to move forward."

But some local authorities, including a few in the south, will see a much bigger increase in their spending power than Stoke-on-Trent.

Luton's increase of 63.4 per cent will be the highest in England, with Enfield (58.2 per cent), Derby (46.8 per cent) and Manchester (46.8 per recent) also among the biggest 'winners'.

Staffordshire County Council's core spending power will increase by £159.4 million, or 21.2 per cent. But this includes £128.4 million from council tax hikes.

Stoke-on-Trent South MP Allison Gardner, whose constituency includes parts of Staffordshire, said: "This £237 million investment is a major boost for Stoke-on-Trent and Staffordshire and shows the difference a Labour government makes.

"For too long, unfair Conservative funding decisions stripped resources out of our area, leaving councils under pressure and communities losing out.

"Labour has changed that approach. By linking funding to real levels of need, we are making sure that places like ours get a fair deal and the investment required to support local services and long-term planning."

David Williams, MP for Stoke-on-Trent North and Kidsgrove, said: "This settlement is built on a simple principle: fairness. For too long, our councils were asked to carry growing responsibilities without the funding to match. 

"This change recognises the real pressures facing communities like ours and begins to put the system on a sounder footing 

"It will support vital services for children and older people, help maintain our roads and neighbourhoods, and give councils the certainty they need to plan for the future. 

"That is what responsible government looks like." 

The county council has been approached for comment.

While councils' core spending power is increasing, authorities are also facing ever-rising costs due to demand for services such as social care, as well as pay increases.

The city and county councils will publish their 2026/27 budget proposals, including any council tax rises, early in January.