This report does not constitute a rating action. LONDON (S&P Global Ratings) Nov. 5, 2026--We consider the institutional framework for U.K. local authorities is very predictable and well-balanced, with a stable trend (see"Institutional Framework Assessment: U.K. Local Authorities'Framework Remains Sound Despite Changes To Funding Arrangements ,"published today). The framework benefits from robust fundamentals, a measured approach toward the implementation of changes, a prudent fiscal framework and safeguards, and access to government funding at short notice. Weaknesses include limited fiscal flexibility and the lack of a representative chamber in Parliament. Systemically, the institutional set-up under which U.K. local authorities operate remains sound and stable, with responsibilities largely unchanged following the recent revision of funding-allocation arrangements. The government
