Asked by: David Davis (Conservative - Goole and Pocklington)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment has been made of the adequacy of the transitional funding arrangements in the Fair Funding Review in ensuring the sustainable operation of local authorities.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
The government published the Local government finance policy statement 2026-27 to 2028-29 and response to the Fair Funding Review 2.0 on Thursday 20 November, which set out the government's plans to introduce a fairer and evidence-led funding system. The government also published the Provisional Local Government Finance Settlement 2026-2027 to 2028-2029 on Wednesday 17 December 2025.
The government has been clear that we will support local authorities to manage their updated funding positions through a package of transitional arrangements, including by introducing changes over the multi-year Settlement and protecting councils’ income, including locally retained business rates growth. These arrangements will support councils to their new allocations in a sustainable way. Provisional multi-year funding allocations were published at the provisional Local Government Finance Settlement on 17 December 2025, including details on the package of transitional support for councils who would otherwise see their funding fall as a result of the introduction of the reformed system.
The government recognises the challenging financial context for local authorities as they continue to deal with the legacy of the previous flawed system. We will therefore continue to have a framework in place to support those in the most difficult positions. We also recognise that local authorities are continuing to face significant pressure from the impact of Dedicated Schools Grant (DSG) deficits on their accounts and that local authorities will need continued support during the transition to a new Special Educational Needs and Disabilities (SEND) system. We will provide further detail on our plans to support local authorities with historic and accruing deficits and conditions for accessing such support later in the Local Government Finance Settlement process. The Department for Education will set out plans for reform of the SEND system in the upcoming Schools White Paper, building on the work already done to create a system that’s rooted in inclusion, where children receive high-quality support early on and can thrive at their local school.
The government is considering the responses received following the consultation of the Provisional Local Government Finance Settlement 2026 to 2027 and will set out a position when the final Settlement is published in early February. Between now and the end of the multi-year Settlement, there will be another Spending Review which will determine arrangements for 2029-30 and beyond.
Asked by: Joe Robertson (Conservative - Isle of Wight East)
Question to the Department for Education:
To ask the Secretary of State for Education, whether her Department has modelled the potential impact of Plan 2 interest rates on graduate retention in key public service professions.
Answered by Josh MacAlister - Parliamentary Under-Secretary (Department for Education)
The department does not provide analysis for impacts of policies on graduate retention in key public service professions.
Borrowers, including those in public services professions, remain protected as repayments are determined by income, not the amount borrowed. If a borrower’s salary remains the same, their monthly repayments will also stay the same.
Borrowers only start repaying their student loan once earnings exceed the student loan repayment threshold, after which they pay 9% of income above that level. The Plan 2 repayment threshold freeze does not change that or increase borrowers’ student loan balances. At the end of the repayment term any outstanding loan debt, including interest accrued, will be cancelled.
It is important that we have a sustainable student finance system, fair to students and the taxpayer. We will continue to keep the terms of the system under review to ensure this remains the case.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, if he will make an assessment of the adequacy of Government funding to (a) local authorities in Yorkshire and (b) York Central constituency.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
This Local Government Finance Settlement is our most significant move yet to make English local government more sustainable. The government is making good on long overdue promises to fundamentally update the way we fund local authorities. We are delivering fairer funding, targeting money where it is needed most through the first multi-year Settlement in a decade.
The provisional Settlement 2026-27 will make available almost £78 billion in Core Spending Power for local authorities in England, a 5.7% cash-terms increase compared to 2025-26. For York Council we are making available up to £198 million in 2028-29 in Core Spending Power, an increase of 7.7% compared to 2024-25.
Core Spending Power allocations for individual local authorities through the provisional Local Government Financial Settlement 2026-27, including those in the Yorkshire region can be found here.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what recent assessment he has made of the financial sustainability of local authorities with significant Private Finance Initiative liabilities.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
Local authorities are responsible for their own capital strategies and financial management, including borrowing and investment decisions. They must, however, comply with statutory duties and guidance to ensure that all decisions are prudent, affordable and sustainable and consistent with their Best Value duty.
The PFI Programme team attend regular intelligence sharing forums with other teams in the Department who are responsible for overseeing local authority financial stability. The Department provides PFI grant funding to its local authority PFI contracts funding the capital elements of the projects, this ranges 50-70% of the annual Unitary Charge. Local authorities are contractually obliged to pay the annual Unitary Charge under the terms of their PFI Contract. The PFI Grant paid by the Department was awarded by HM Treasury at the Financial Close of the Project Procurement and is paid for the whole of the PFI Contract term to support the Unitary Charge payment.
Asked by: Al Pinkerton (Liberal Democrat - Surrey Heath)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential impact of the Provisional Local Government Finance Settlement 2026-27 on (a) Surrey and (b) Surrey Heath constituency.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
This Local Government Finance Settlement is our most significant move yet to make English local government more sustainable. The government is making good on long overdue promises to fundamentally update the way we fund local authorities. We are delivering fairer funding, targeting money where it is needed most through the first multi-year Settlement in a decade.
The provisional Settlement 2026-27 will make available almost £78 billion in Core Spending Power for local authorities in England, a 5.7% cash-terms increase compared to 2025-26. For Surrey Council, we are making available up to £1.3 billion in 2028-29 in Core Spending Power, an increase of up to 6.9% compared to 2024–25. For Surrey Heath Council, we are making available up to £15.4 million in 2028-29 in Core Spending Power, an increase of up to 2.4% compared to 2024–25.
Asked by: Andrew Rosindell (Reform UK - Romford)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what support her Department is providing to the Turks and Caicos Islands Government for the proposed airport expansion in Providenciales.
Answered by Stephen Doughty - Minister of State (Foreign, Commonwealth and Development Office)
The UK is committed to expanding economic cooperation with the Overseas Territories, recognising the importance of sustainable economic prosperity to the whole UK family. The 2025 Joint Ministerial Council included discussions with UK Export Finance regarding their infrastructure offer and credit finance opportunities in the UK, as well as a business engagement session involving UK companies with infrastructure expertise, including airports.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to his Department's press release entitled £78bn for councils in turning point settlement to cut deprivation, published on 17 December 2025, what steps his Department is taking to ensure that councils spend allocated money to benefit all residents.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
The government is making good on long overdue promises to fundamentally update the way we fund local authorities, realigning funding with need and deprivation through the first multi-year Local Government Finance Settlement in a decade. We are introducing a fairer and evidence-based funding system, which will account for local circumstances, including different ability to raise income locally from council tax and the variation in cost of delivering services. Further information on how funding allocations have been calculated is available in the government’s response to the Fair Funding Review 2.0 and the provisional Settlement 2025-26 to 2028-29.
Local authorities are responsible for their own borrowing and investment decisions but must operate within a legislative and guidance framework designed to ensure that borrowing is prudent, affordable and sustainable. The government is responsible for that framework and monitors sector behaviour using information and data from a range of sources, including levels of borrowing and debt. To support compliance with the framework and to protect public money, the government is taking forward work to operationalise the new capital powers introduced by the Levelling Up and Regeneration Act, which provide for targeted intervention where councils take on excessive risk through borrowing and investment activity.
On handling Thurrock’s debt, I refer the hon. Member to the answer given to Question UIN 77936 on 13 October 2025.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to his Department's press release entitled £78bn for councils in turning point settlement to cut deprivation, published on 17 December 2025, what steps he is taking to ensure that councils are incentivised to pay off debts and ensure long-term financial stability.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
The government is making good on long overdue promises to fundamentally update the way we fund local authorities, realigning funding with need and deprivation through the first multi-year Local Government Finance Settlement in a decade. We are introducing a fairer and evidence-based funding system, which will account for local circumstances, including different ability to raise income locally from council tax and the variation in cost of delivering services. Further information on how funding allocations have been calculated is available in the government’s response to the Fair Funding Review 2.0 and the provisional Settlement 2025-26 to 2028-29.
Local authorities are responsible for their own borrowing and investment decisions but must operate within a legislative and guidance framework designed to ensure that borrowing is prudent, affordable and sustainable. The government is responsible for that framework and monitors sector behaviour using information and data from a range of sources, including levels of borrowing and debt. To support compliance with the framework and to protect public money, the government is taking forward work to operationalise the new capital powers introduced by the Levelling Up and Regeneration Act, which provide for targeted intervention where councils take on excessive risk through borrowing and investment activity.
On handling Thurrock’s debt, I refer the hon. Member to the answer given to Question UIN 77936 on 13 October 2025.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to his Department's press release entitled £78bn for councils in turning point settlement to cut deprivation, published on 17 December 2025, whether any of the £78 billion will be used to clear Essex County Council’s debts.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
The government is making good on long overdue promises to fundamentally update the way we fund local authorities, realigning funding with need and deprivation through the first multi-year Local Government Finance Settlement in a decade. We are introducing a fairer and evidence-based funding system, which will account for local circumstances, including different ability to raise income locally from council tax and the variation in cost of delivering services. Further information on how funding allocations have been calculated is available in the government’s response to the Fair Funding Review 2.0 and the provisional Settlement 2025-26 to 2028-29.
Local authorities are responsible for their own borrowing and investment decisions but must operate within a legislative and guidance framework designed to ensure that borrowing is prudent, affordable and sustainable. The government is responsible for that framework and monitors sector behaviour using information and data from a range of sources, including levels of borrowing and debt. To support compliance with the framework and to protect public money, the government is taking forward work to operationalise the new capital powers introduced by the Levelling Up and Regeneration Act, which provide for targeted intervention where councils take on excessive risk through borrowing and investment activity.
On handling Thurrock’s debt, I refer the hon. Member to the answer given to Question UIN 77936 on 13 October 2025.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to his Department's press release entitled £78bn for councils in turning point settlement to cut deprivation, published on 17 December 2025, whether any of the £78 billion will be used to clear Thurrock Council’s debts.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
The government is making good on long overdue promises to fundamentally update the way we fund local authorities, realigning funding with need and deprivation through the first multi-year Local Government Finance Settlement in a decade. We are introducing a fairer and evidence-based funding system, which will account for local circumstances, including different ability to raise income locally from council tax and the variation in cost of delivering services. Further information on how funding allocations have been calculated is available in the government’s response to the Fair Funding Review 2.0 and the provisional Settlement 2025-26 to 2028-29.
Local authorities are responsible for their own borrowing and investment decisions but must operate within a legislative and guidance framework designed to ensure that borrowing is prudent, affordable and sustainable. The government is responsible for that framework and monitors sector behaviour using information and data from a range of sources, including levels of borrowing and debt. To support compliance with the framework and to protect public money, the government is taking forward work to operationalise the new capital powers introduced by the Levelling Up and Regeneration Act, which provide for targeted intervention where councils take on excessive risk through borrowing and investment activity.
On handling Thurrock’s debt, I refer the hon. Member to the answer given to Question UIN 77936 on 13 October 2025.