Oral Answers to Questions

Natasha Irons Excerpts

Monday 9th June 2025 Commons Chamber

[Amanda Hack (North West Leicestershire) (Lab)]

12. What progress her Department has made on providing adequate funding for local authorities as part of the fair funding review.

[Natasha Irons (Croydon East) (Lab)]

13. What steps her Department is taking to help ensure that councils are financially stable.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

14. What steps her Department is taking to help ensure that councils are financially stable.

--- Later in debate ---

[Natasha Irons]

Despite an increase in council tax of 27% since 2022, £136 million in exceptional financial support this year and brutal cuts to services, Croydon council’s finances remain broken. As an outer-London borough with inner-London problems, Croydon has historically not received the funding it needs to cover the costs for demand-led services like temporary accommodation, so even if Croydon’s debt was wiped out, it would still need exceptional financial support. Will the Minister outline how councils like Croydon will get the resources they need to meet the complex challenges they face and provide the frontline services that our communities deserve?

[Jim McMahon]

The questions that have been raised demonstrate why the fair funding review is needed, and why it has to take into account all the different factors that have an impact on whether councils can provide good public services or not. I appreciate, understand and accept that pressures that were previously felt in inner London are now felt in outer London, and in rural areas too. My hon. Friend will know that in February we provided £136 million in EFS support for Croydon council, and we will continue to work with it. We have met and talked about the issues a number of times, and I know that she understands that those are not small problems to deal with.