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

To ask His Majesty's Government whether they intend to issue guidance to district councils on their use of financial reserves following the publication of the English Devolution White Paper on 16 December 2024.

The Government considers reserves to be an important part of the resources available to local authorities and encourages councils to consider how they can use them while maintaining appropriate levels to support sustainability, future investment, and ability to respond to shocks.

The government is committed to introducing an improved approach to funding local authorities from 2026-27, including an updated assessment of need. The initial consultation on our principles and objectives for funding reform closed on 12 February.