Financial Distress in Local Authorities

Simon Hoare Excerpts

Thursday 1st February 2024 Commons Chamber

[Mr Betts]

I thank my hon. Friend for that question. Yes, it certainly is doing so. I have just produced a report about local government audit. There is a real problem there. If accounts have not been audited for three years, as in most cases, but probably longer in other cases, how on earth do we know what is happening in local council finances? Certainly, getting local audit on an even keel by the end of this year is very important, but where accounts are qualified, as they will be, councils should not be blamed for that; it is the problem of the local audit system, and we really must sort that out.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

On behalf of the Government, I thank the Chair of the Select Committee and all his colleagues on it for the work that they do in general, and for the report in particular. I will obviously study it with great care, and respond in the usual way. He made a number of points. I think we can all agree that certainty and security for the local government sector are important, and I concur with his view that there is clear merit in multi-year settlements. I also agree that whoever is standing at the Dispatch Box in the role of local government Minister after the next general election—I pray to God that it will be me, and I hope that my prayers will be answered—reforms will always be difficult and complex. I would be interested to know whether the hon. Member for Sheffield South East (Mr Betts) sees any merit in establishing some cross-party working and blue-sky thinking on the issue, in order hopefully to land something that can deliver certainty and security for five, 10, 15 or 20 years ahead, to give comfort to local government leaders, section 151 officers and others.

[Mr Betts]

While I might not completely agree with the Minister’s prayers, I agree that if we are to sort this out for the long term, particularly social care funding, we need a system that has general support. The Committee has called for that in the past. What we did on pensions reform a few years ago, cross party, has stuck, so there is merit in that suggestion. Whether we can achieve it, I do not know, but we ought to try.

[Mr Deputy Speaker (Mr Nigel Evans)]

I thank the hon. Member for her point of order and her forward notice of it. Clearly, the Chair is not responsible for the accuracy of Ministers’ remarks, but at the same time we want them to be accurate. I hope that those on the Treasury Bench have heard what she has had to say, and will ensure that the Secretary of State has it brought to his attention. At the same, given that she is a diligent Member of Parliament, I am sure that she will bring it directly to the notice of Ministers.

[Simon Hoare]

Further to that point of order, Mr Deputy Speaker. I have heard what the hon. Lady said. It is a serious point. I will ensure that my officials raise it with the office of the Secretary of State this afternoon to ensure that the situation is clarified. It is a sensitive issue, and her constituent and others will want to have clarity.

[Mr Deputy Speaker]

I cannot do it quicker than that, can I?