Local Government Reorganisation

Baroness Eaton Excerpts
Tuesday 21st July 2026

(3 weeks, 1 day ago)

Lords Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Baroness Eaton Portrait Baroness Eaton (Con)
- View Speech - Hansard - -

My Lords, I declare my interest as a vice-president of the LGA. It is very encouraging to see how keen the Liberal Democrats are to scrutinise the Government. Given the inconsistent approach to last week’s reorganisation announcements, can the Minister please confirm whether officials advised Ministers that an expansion of the exceptional financial support package would be required to support some of the newly formed councils, which will come close to Section 114 territory upon formation?

Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
- View Speech - Hansard - - - Excerpts

When we took these decisions, we were very aware that some of the councils involved were already receiving exceptional financial support. We continue to work with those councils through the EFS process in the usual way, but LGR will save money over time and make the sector more sustainable in the long term. Where there are issues around funding and finance, the Government are already tackling this with our fair funding formula, and we have supported some authorities with exceptional financial support. We will continue to keep that under review where it is needed, but it will exist whether the confusing two-tier system remains or we transition to unitary authorities.