Local Government Reorganisation

Baroness Grender Excerpts

Thursday 16th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I thank the right reverend Prelate for his question and for his continued interest in rural communities. We believe that part of the process of devolution will mean that the people who are taking the decisions for rural communities will be people who have skin in the game in those rural areas; that is very important. Places with a significant rural population will, on average, receive an increase of around 5% in their core spending power next year, which is a real-terms increase. The rural service delivery grant does not properly account for need, and a large number of predominantly rural councils receive nothing from it. That is clearly not right, and a sign that we need to allocate funding more effectively. We are keen to hear about rural councils, as well as others, as we go through the spending review, so that we can work on what would work best for them in the new funding system.

[Baroness Grender (LD)]

My Lords, no doubt the Minister will be aware of the eye-watering debts of over £2 billion left to the people of Woking by their former Conservative council. What is the level of risk to other local authorities if they are merged with Woking? What analysis have the Government undertaken of chronic failures of financial management, such as Woking, and the likely impact on reorganisations if the Government fail to find a way to resolve a debt of this nature?

[Baroness Taylor of Stevenage (Lab)]

The noble Baroness is quite right to point out that there are councils that may be in scope for this programme which have significant debt. We are working through a programme with those councils—Woking is one of them and Thurrock is another. It should not be for people outside those areas to pick up that debt. This is not helped by the fact that our Government have inherited a broken local audit system. For the financial year 2022-23, just 1% of audited accounts were published by the original deadline. That is not good enough. We are working on fixing that, and we will be working through a process with the councils concerned.