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Written question asked by Lord Laming (Crossbench) on Monday, 1 September 2025, in the House of Lords. It was due for an answer on Monday, 15 September 2025. It was answered by Baroness Taylor of Stevenage (Labour) on Tuesday, 16 September 2025 on behalf of the Ministry of Housing, Communities and Local Government.

Local Government Finance

Question

To ask His Majesty's Government what steps they are taking to ensure that local authorities facing budgetary problems continue to fulfil their statutory responsibilities.

Answer

The Government recognises the significant pressures that councils are facing. This Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. The Government is committed to ensuring that funding is targeted effectively at the places and services that need it most and allocated in a way that empowers local leaders to deliver against local priorities. This includes committing to multi-year allocations for each council through the upcoming 2026-27 Local Government Finance Settlement (LGFS) and moving to a more up-to-date assessment of each council’s needs and resources.

Councils are responsible for their own financial management, and the department does not monitor their day-to-day business. Any council that has concerns about its ability to set or maintain a balanced budget should approach the department in the first instance.

Secondary information

Type
Written question
Reference
HL9997
Session
2024-26
Subjects
Local government finance
Link
View this Written question on www.parliament.uk