Draft Local Government (Structural and Boundary Changes) (Control of Disposals etc.) (Amendment) Order 2026 Debate

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Department: Ministry of Housing, Communities and Local Government
Wednesday 24th June 2026

(1 month, 1 week ago)

General Committees
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Lewis Cocking Portrait Lewis Cocking (Broxbourne) (Con)
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It is a pleasure to serve under your chairmanship, Mr Vickers. The Government are bringing forward logical proposals to deal with new councils, but my concern is that I am not sure that this measure goes far enough. It talks about protecting new councils from existing councils’ decisions about their finances, but what we do not talk about in this—and what I think the Government need to consider—are existing councils that are going to be forced to merge.

That is important because, if we look at my constituency, I have a council with money in the bank and a council without money in the bank. This legislation talks about protecting the new authority from financial decisions that the existing authorities have made—I completely support that, and I think the Government are taking a logical approach—but we need to explore whether it is fair for all the money to go into the same pot. Is it fair for people who have had good councils, with money in the bank, to see their taxpayers’ money spent elsewhere in the authority, where they will not see a benefit?

We should explore what financial information, constraints or regulations we can give to new councils when they are created, rather than just putting all the money into the pot. The councils to be merged will not have the same financial footing. They will not have the same services or the same money in the bank. If we think that it is important to protect the new council from decisions that the existing authority has made, it is right that we look at protecting specific areas within new councils that have had good financial management over the short to medium term.

As I said, there is an example in my constituency: Broxbourne council has about £50 million in the bank but East Herts council has none. What I do not want to see if we have to go through local government reorganisation is all that money going into the pot and then being spent on paying someone else’s debt. It is right for constituents that I represent in the borough of Broxbourne to say that there should be some guidance outlining that that money should at least be spent within the existing boundaries of that authority, even if it is under the new council.

None Portrait The Chair
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Order. The Member is straying a little from the scope of the proposal. Will he conclude, please?

Lewis Cocking Portrait Lewis Cocking
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Thank you for your guidance, Mr Vickers.

This is an important piece of legislation that the Government are bringing forward. I wonder whether the Minister could explore some of the points that I have raised in this debate.