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

To ask His Majesty's Government what steps they are taking to provide financial support to local councils facing bankruptcy.

On Monday 21^st October, Minister McMahon wrote to all MPs to confirm that we will continue to operate a process to support councils in the most difficult positions.

At the Autumn Budget, we announced £1.3 billion of new grant funding in 2025/26 for local government to deliver core services, of which £600 million is for social care and £700 million to support general pressures. Together with local income from council tax and locally-retained business rates, this will provide a real-terms increase in total core spending power of around 3.2%.

Any council that considers its financial position to be unmanageable should talk to MHCLG.