Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what steps his Department is taking to support local councils with high debt levels.

Local government in England will see an increase in Core Spending Power of up to £4.5 billion next year, or 7.5% in cash terms, an above-inflation increase, rising from £60.2 billion in 2023-24 to up to £64.7 billion in 2024-25. Councils must manage the costs of borrowing as part of their overall financial position, and should ensure that all borrowing is prudent, affordable, and sustainable.

The Levelling Up and Regeneration Act provides new powers for central government to step in when councils take on excessive risk through disproportionate debt. It will also provide powers to address risk from historic practices. We stand ready to speak to any council that has concerns about its ability to manage its finances or faces pressures it has not planned for.