Local Government Finance

Debate between Gareth Thomas and Danny Beales

Wednesday 11th February 2026 Commons Chamber

[Gareth Thomas]

If the hon. Gentleman will forgive me, I have given way to him once, and I leave him to hope to catch your eye later, Madam Deputy Speaker.

The public will get their say on the situation in Harrow in May, but the failures at Harrow council raise other questions. Reversing the decade and more of austerity for local services is clearly a priority, and the settlement that was announced in December makes a good start on that objective. Harrow certainly needs a serious examination of its funding formula, but surely raising the quality of local services needs to be more than just the responsibility of local people. In 2015, the Opposition parties decided to abolish the Audit Commission, a body that usefully challenged councils much earlier on, and helped prevent many poor management practices of the sort we regularly see in Harrow from developing and getting out of control.

[Danny Beales]

My hon. Friend makes an excellent point. Rightly, this Government are putting more money back into local government for the first time in many years. That is long overdue, but that money has to be well spent. Unfortunately, what he describes in Harrow is quite similar to the experience of my residents in Hillingdon. The independent auditors are quite damning about the council’s budgeting approach. Millions of pounds have been misallocated, and there were no opening and closing balances, well into the financial year. It was recently reported by the press that the council, in a secret deal, had written off a former Tory councillor’s debt, all while applying for exceptional financial support from this Government, so I completely agree with him. Do we not need more independent oversight and audit of local government finance?

[Gareth Thomas]

We certainly need more independent oversight of the way in which Conservative councils in outer London are managing their finances. I am completely with my hon. Friend on that score, and the story of what has happened in Hillingdon is almost as bad as the situation we have faced in Harrow over the last four years. The one bright spot has been the increase in finance that the Secretary of State has delivered for Harrow. We need a review of the funding formula for Harrow, but I welcome the settlement we have had, and I look forward to continuing to persuade him of the case for more funding in Harrow.