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Written question asked by Lord Laming (Crossbench) on Wednesday, 28 February 2024, in the House of Lords. It was due for an answer on Wednesday, 13 March 2024. It was answered by Baroness Scott of Bybrook (Conservative) on Wednesday, 13 March 2024 on behalf of the Department for Levelling Up, Housing and Communities.

Local Government: Insolvency

Question

To ask His Majesty's Government what assessment they have made of the report from the Local Government Information Unit, The State of Local Government Finance in England 2024, published on 28 February, which suggests that half the councils in England will face bankruptcy within the next Parliament.

Answer

I refer the Noble Lord to the written statement made by the Secretary of State for Levelling Up, Housing and Communities HCWS241 and by the Minister for Local Government HCWS300 on 5 February.

The final Local Government Finance Settlement for 2024-25 makes available up to £64.7 billion, an increase in Core Spending Power of up to £4.5 billion or 7.5% in cash terms on 2023-24 – an above inflation increase. This Settlement includes additional measures worth £600 million announced on 24 January.

On the 29 February, the Government published details of financial flexibilities agreed with a small number of other councils that requested financial support on an exceptional basis, due to specific local issues that they are unable to manage themselves. Nearly three quarters of the support announced relates to six councils where there has been severe local failure, forcing the government to step in and take action through statutory intervention.

As a result of this action by Government, we anticipate that all councils will be able to set a balanced budget and continue to deliver vital services for their communities.

Secondary information

Type
Written question
Reference
HL2844
Session
2023-24
Attachment
HCWS241; HCWS300
Related items
Local Government Finance Update
Monday, 5 February 2024
Written statements
House of Commons
Local Government Finance Update
Thursday, 29 February 2024
Written statements
House of Commons
Subjects
Insolvency Local government
Link
View this Written question on www.parliament.uk