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

To ask the Secretary of State for Levelling Up, Housing and Communities, what recent steps the Government has taken to help (a) address funding shortfalls in local council budgets and (b) prevent local councils declaring bankruptcy.

The provisional local government finance settlement for 2024-25 makes available over £64 billion, an increase in Core Spending Power of almost £4 billion or 6.5% in cash terms on 2023-24. This above-inflation increase demonstrates how the Government stands behind councils up and down the country.

Through the provisional settlement we set out proposals to continue to support all councils by providing a sector-wide Funding Guarantee, ensuring all local authorities see a minimum 3% increase in Core Spending Power before local council tax decisions.

We launched a consultation on the proposals for 2024-25 through the provisional settlement, which closed on 15 January 2024. After the consultation responses are considered and any alterations are made, we will publish a final settlement early this year which will be subject to a debate in the House of Commons.