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Written question asked by Julian Knight (Independent (affiliation)) on Wednesday, 6 September 2023, in the House of Commons. It was due for an answer on Monday, 11 September 2023. It was answered by Lee Rowley (Conservative) on Monday, 11 September 2023 on behalf of the Department for Levelling Up, Housing and Communities.

Local Government Finance

Question

To ask the Secretary of State for Levelling Up, Housing and Communities, whether his Department has made an assessment of the potential merits of establishing a (a) centralised resource and (b) support centre for councils facing financial distress.

Answer

The department has engaged regularly with Birmingham City Council, including in recent months over the pressures it faces around its failed implementation of the Oracle IT system and its unresolved equal pay liability. We have expressed serious concern over the Council's governance arrangements, and, in April, I requested that the Council commission an independent governance review, which will report on its findings in the coming weeks. I have placed a copy of my correspondence from August with the Leader of the Council in the Library of the House of Commons.

Councils are responsible for their own financial management. The department stands ready to speak to any council that has concerns about its ability to manage its finances. The decision to issue a Section 114 report is a local one, taken by the statutory chief finance officer.

In line with the practice of successive administration, details of internal discussions are not normally disclosed.

Secondary information

Type
Written question
Reference
198214
Session
2022-23
Related items
Deposited Paper DEP2023-0728
Monday, 11 September 2023
Deposited papers
House of Commons
Grouped for answer
Yes
Subjects
Local government finance
Link
View this Written question on www.parliament.uk