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

To ask His Majesty's Government how many councils have indicated that they are in financial distress and may have to issue a section 114 notice within the next two years.

Individual councils are responsible for managing their budgets, and any decision to issue a Section 114 report is made locally. 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.

The Government monitors the financial health of local authorities on a regular basis using a wide range of data as well as through extensive direct engagement with councils.

The final Local Government Finance Settlement for 2024-25 makes available up to £64.7 billion, an increase in Core Spending Power of up to £4.5 billion or 7.5% in cash terms on 2023-24 – an above inflation increase. This Settlement includes additional measures worth £600 million announced on 24 January.

On the 29 February, the Government published details of financial flexibilities agreed with a small number of other councils that requested financial support on an exceptional basis, due to specific local issues that they are unable to manage themselves.