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

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Local Government Finance Statement made on 23 February 2026, what estimate he has made of the aggregate level of debt held by local authorities in relation to commercial property acquisition; how many councils hold commercial property investments exceeding 100% of their annual core spending power; what exposure the Public Works Loan Board has to such investments; and whether he plans to use statutory capital powers to prevent debt-financed commercial activity.

The government does not collect data specifically on debt incurred to finance commercial property. However, authorities are required to submit data on borrowing, capital spend and asset holdings to government as part of quarterly and annual returns.

• Borrowing and investment data for each authority is shown by quarter on gov.uk here. This includes detail on the value of outstanding borrowing from the Public Works Loan Board.
• Capital expenditure, receipts and financing data is published on gov.uk here.
• Data on assets held by authorities is published on gov.uk here.
• Core Spending Power for each authority is published on gov.uk here

The government is taking forward work to implement the capital powers introduced into the Local Government Act 2003 in 2023, which provide powers for government to take action where an authority is exposed to excessive risk from borrowing and investment practices. The government will consult on use of these powers later this year.

The government’s objective is to safeguard the existing framework so that it continues to support essential investment—such as for housing and regeneration—while preventing practices such as taking on excessive debt for novel and risky investments. We will work closely with the sector to ensure that the powers are effective and avoid unintended consequences.