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 Written Ministerial Statement entitled Local Government Finance of 28 November 2024, Official Report, HCWS265, how she plans to manage the debts of councils subject to Section 114 notice following the proposed reorganisation of local government.

The decision to issue a Section 114 notice is for a council’s section 151 officer and government has no role in the process.

Under the previous government, the then Secretary of State used statutory powers to intervene in a small number of councils failing their Best Value Duty partly associated with high levels of unsustainable debt. Government is engaging closely with Best Value Commissioners and Panel Members to understand these councils’ plans to return to a sustainable position. The Government has confirmed that there will be a framework in place to support councils in the most difficult positions.

The English Devolution White Paper published on 16 December announced that the Government will facilitate local government reorganisation for two-tier areas and for unitary councils where there is evidence of failure, or where their size or boundaries may be hindering their ability to deliver sustainable and high-quality public services.