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Written question asked by Kevin Hollinrake (Conservative) on Tuesday, 28 January 2025, in the House of Commons. It was due for an answer on Thursday, 30 January 2025. It was answered by Jim McMahon (Labour) on Wednesday, 5 February 2025 on behalf of the Ministry of Housing, Communities and Local Government.

Local Government: Debts

Question

To ask the Secretary of State for Housing, Communities and Local Government, with reference to para 4.2.3 of the English Devolution White Paper, published on 16 December 2024, how the (a) debts and (b) surpluses of individual councils will be divided up in areas with local government restructuring; and whether debt liability will be transferred to all the taxpayers in the new unitary.

Answer

It is the responsibility of councils to manage their budgets, and it is standard for councils to borrow and to hold debt, which they will do in the normal course of business. Local government re-organisation does not change this. 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 with local leaders to explore how best to support local government reorganisation where there has been failure. We will continue to work with Best Value Commissioners in these councils to support the councils’ financial recovery.

Secondary information

Type
Written question
Reference
26838
Session
2024-26
Related items
Local Government: Debts
Monday, 3 March 2025
Written questions
House of Commons
Subjects
Debts Local government Reorganisation
Contains statistics
Yes
Link
View this Written question on www.parliament.uk