Local Authorities: Budgets Debate

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Department: HM Treasury

Local Authorities: Budgets

Lord Sahota Excerpts
Tuesday 19th September 2023

(1 year, 2 months ago)

Lords Chamber
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Baroness Penn Portrait Baroness Penn (Con)
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My Lords, the Government are supporting councils. This is not about what is happening after the next election. In this spending review period, councils will receive £4.8 billion of new grant funding—the largest annual increase in core funding in over a decade—and that was further topped up at the Autumn Statement last year, recognising the pressures that councils face. Councils are doing an excellent job up and down the country, and we support them.

Lord Sahota Portrait Lord Sahota (Lab)
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My Lords, does the Minister agree that one of the reasons so many local authorities are in such financial trouble these days is because there is a lack of external scrutiny and transparency since the scrapping of the Audit Commission in 2015?

Baroness Penn Portrait Baroness Penn (Con)
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No, I do not agree. In recent years, a small number of local authorities took on excessive debt through their commercial strategies and investments. The Government have taken action both to bring this practice to an end and to revise the framework by which local authorities can borrow and invest. The levelling-up Bill expands statutory powers to directly tackle excessive risk within the local government capital system.