Spending Commitments to Local Councils

Lord Sahota Excerpts

Monday 22nd July 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, there has to be a short pause while we seek clarity on existing funding commitments, as I said earlier. The Government are fully considering those funding arrangements and I know that a great deal of work has been put in. Many of those projects are aligned with the growth that we want, and we hope to be able to give all local authorities the answers in very short order.

[Lord Sahota (Lab)]

My Lords, the LGA estimates that one in 10 local authorities are on the brink of bankruptcy due to the lack of proper funding by the previous Government. What is the new Government’s policy to avert this disaster?

[Baroness Taylor of Stevenage (Lab)]

Under the previous Government, 19 councils needed to seek additional support from the Government to balance their budgets for this year. This Government are committed to ensuring councils have the resources needed to provide those public services. We are already working closely with local government and other departments to understand the specific demand and cost pressures facing them. We urge any council experiencing financial difficulties to approach the department as early as possible so we can help work through a plan to resolve them.