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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Alison McGovern Portrait Alison McGovern
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I will do so in a moment.

The shadow Minister makes a very reasonable point on councils in receipt of exceptional financial support and the disposal of assets. He knows that the number of councils in EFS is a great concern of mine. We liaise with those local authorities week in, week out to do all we can to support them. It serves none of us to have exceptional financial support become normalised, and we are in touch with them.

Zöe Franklin Portrait Zöe Franklin (Guildford) (LD)
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Will the Minister give way?

Alison McGovern Portrait Alison McGovern
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I will give way to the hon. Member for Spelthorne and the hon. Lady in a moment once I finish responding to the shadow Minister.

On arm’s length management organisations and academies, this depends on the specifics of the contract and the transfer that has taken place. Again, we are working actively with councils. On the value of sites and the issue that the hon. Member for Ruislip, Northwood and Pinner mentioned with developers being able to garner extra value from their sites, we have provided councils with checklists and much information about things that they should be wary of. Nevertheless, I thank him for raising it. I will double check that it is on the checklist.

--- Later in debate ---
Alison McGovern Portrait Alison McGovern
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You are very generous, Mr Vickers. The hon. Member knows that I am sympathetic; it is a matter for the authorities themselves, of course, but he makes a good case.

Zöe Franklin Portrait Zöe Franklin
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The Minister spoke about exceptional financial support. I was interested to hear her say that we do not wish EFS to be normalised. I suggest that we are in circumstances in which it is normalised, given that so many councils require it and so many of them expect to have to use it. A lot of councils are struggling to balance their annual budgets on that basis.