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

To ask the Secretary of State for Housing, Communities and Local Government, what will happen to existing Council debt following local government reorganisation.

It is the responsibility of councils to manage their budgets, and it is standard for councils to borrow and to hold debt, which they will do in the normal course of business. Local government reorganisation does not change this. The government has a framework to support councils in financial difficulty. Previous Secretaries 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. We will continue to work with best value commissioners in these councils to support the councils’ financial recovery.