London Boroughs: Financial Support

Lord Young of Cookham Excerpts

Monday 3rd November 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

There is much to be done in looking at local authority pension funds—I agree with the noble Baroness on that. We are working through that process. Of course, there is a balance to be struck between how you might use that for capital spending, which would be an investment that there may be a return on, and using it for some of the pressures that we are experiencing on revenue spending, which is the real pressure for local authorities at the moment. It would not be a long-term solution for that, but the noble Baroness makes a very good point. We are exploring what more can be done around the pension funds and using that money for local spend.

[Lord Young of Cookham (Con)]

My Lords, further to the reply given to my noble friend about transitional relief, if, as is widely forecast, there will be substantial losses in the London boroughs, can the Minister guarantee that in any one year no London borough will have to reduce its expenditure by more than 5% to safeguard essential services?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord will have to wait for the announcement of the funding for local government, because that work is still under way. We have done extensive consultation and, as I said, we are keen to make sure that, where there is a need for transitional relief, it will be paid for by additional funding for those local authorities suffering from that.