The Minister for Local Government and English Devolution (Jim McMahon)
My noble Friend the Under-Secretary of State, Baroness Taylor of Stevenage, has today made the following statement:
All hon. Members will recognise the importance of having well-functioning local councils which provide essential statutory services local residents rely upon. Local councils must be fit, legal and decent, and provide value for taxpayers� money. The Government will continue to work directly with a small number of councils in difficulty, and this should be done in a way that is not punitive and is based on genuine partnership to secure improvements. I would like to update the House on progress in two such cases: Thurrock council and Woking borough council.
Thurrock
Thurrock council has been under statutory intervention since September 2022. Today I am publishing the commissioners� fourth report which makes clear that the council continues to make tangible progress in its recovery and is working hard to meet its best value duty. The council has developed a corporate plan and concluded its governance review, both significant steps forward.
There is still much to do, and the changes made to date, although positive, remain fragile, and need to become embedded into the council�s business as usual activity to provide assurances that these improvements will bring about the level of transformation required. I recognise there are difficult but essential decisions to be made by the council in the coming months, including delivering Thurrock�s ambitious savings target of �18.2 million for 2025-26.
As we look ahead, and with six months before the current directions are due to end (1 September 2025), it is important to take stock of the improvement journey the council has been on and where further improvements may be required. I am asking commissioners to provide their next report in April, including their assessment of the council�s progress to meeting the best value duty. I welcome the commissioners continuing to support Thurrock council in the development of proposals for unitary local government and in their devolution ambitions.
Finally, I am announcing that I am extending the appointment of Dr Dave Smith, managing director commissioner, to 1 September 2025, and as Nicole Wood has stepped down from her role as Thurrock commissioner to become the chief executive of Essex county council, I would like to express my gratitude for the support, challenge and guidance she has provided to the council since the start of the intervention. I am minded to appoint a new finance commissioner as soon as possible.
Woking
Woking borough council has been under statutory intervention since May 2023 and today I am publishing the commissioners� fourth report. I am reassured by commissioners� comments that the council is committed to achieving the objectives that the council have worked with commissioners to set, which will radically overhaul the operation of the council. I share commissioners� concerns as set out in their report regarding the capacity of the council to deliver this programme of change and encourage the council to continue to work with the commissioners and my Department to consider how we can best enable the council to improve, for the benefit of residents. I welcome the commissioners continuing to support Woking borough council in the development of proposals for unitary local government. As Carol Culley is stepping down from her role as Woking commissioner to become executive director of finance at Birmingham city council, I would like to thank her for her commitment to Woking and the considerable skills she has brought to bear as both a reviewer and a commissioner. I am minded to appoint a new finance commissioner as soon as possible.
Conclusion
I want to acknowledge the diligent and hard-working members and officers of both Thurrock and Working who have continued to do their utmost to provide essential frontline services for residents while driving forward the necessary improvements.
The Government will play their part by repairing the foundations of the sector overall. The final local government finance settlement 2025-26, alongside funding announced at the Budget, has delivered over �5 billion of new funding for local services over and above council tax. This includes an additional �2 billion of grant through the settlement in addition to a guarantee that local authorities in England will receive at least �1.1 billion in total in 2025-26 from the new extended producer responsibility for packaging scheme, and a further �233 million of additional funding for homelessness services. Moving forward we will hardwire stability and security into the system with multi-year settlements and fewer restrictive grants. This will allow councils to focus spending on local priorities, and we will set out and measure progress on the key services and outcomes we expect local government to deliver.
I will deposit in the House Library copies of the documents I have referred to, which are also being published on gov.uk today.
[HCWS504]