Oral Answers to Questions

Jim McMahon Excerpts

Monday 4th December 2023 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Minister.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

In 2018, Tory-led Northamptonshire County Council issued a section 114 notice—as close as a council can come to declaring itself bankrupt. Since then, under this Conservative Government, we have seen a further eight councils from across the political spectrum do exactly the same. In September, the credit agency Moody’s warned that more local authorities will

“fail over the near term”

due to high inflation, interest rates and service demand. By the Government’s own assessment, how many more councils are at risk between now and budgets being set next year?

[Simon Hoare]

I welcome the hon. Gentleman to his place and echo the remarks of my right hon. Friend the Secretary of State; it is great to see him back on the Front Bench.

The hon. Gentleman raises an important point. Nobody is going to doubt that section 114 is a serious issue. As I have said to the Local Government Association and others, I do not think it is right for us to name and shame, point the finger or assign blame. We are intent on working with councils that have already alerted us to see what we can do to help, and on working alongside councils that have concerns to ensure they do not fall into that situation. I am not going to give a running commentary on that, save to make this pledge: we will work with those councils to ensure that they can continue to deliver for their voters.