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

To ask His Majesty's Government, with regard to the English Devolution White Paper published on 16 December 2024 (CP 1218), whether the Ministry for Housing, Communities and Local Government has assessed the merits of writing off council debt for those local authorities who decide to pursue a unitary model under the local government re-organisation proposals.

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.

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 work closely with local leaders to explore what support they might need to develop robust proposals and implement new structures, including where there has been failure. We will continue to work with Best Value Commissioners in these councils to support the councils’ financial recovery.