Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, how many local authorities have forecast a structural budget deficit beyond 2026–27 at the same time as applying the maximum council tax increase; and what assessment he has made of the level of likelihood of further Section 114 notices.

The recent Local Government Finance Settlement is our most significant step yet to make English local government more sustainable. Our reforms are delivering a fairer Settlement which puts funding where it is needed most. Before our reforms, only around a third of councils were given the funding that broadly matched their assessed need. Our reforms bring that up to nine in ten councils by 2028-29.

However, delivering reform will take time, and the government recognises the challenging financial context for local authorities as they continue to deal with the legacy of the previous flawed system. That is why the government previously confirmed that there will continue to be a framework in place to support councils in the most difficult financial positions ahead of 2026-27, as councils start the transition to new funding allocations. On 23 February 2026 we wrote to a number of councils to confirm in-principle support through the Exceptional Financial Support (EFS) process. Details of these councils and the support provided have been published on GOV.UK.

Councils are responsible for their own financial management and under the relevant legislation the decision to issue a Section 114 notice is an entirely local one. It would not be appropriate for the government to speculate on these decisions.