Ministry of Housing, Communities and Local Government

Investment strategies for Local Government Pension Scheme funds are set by administering authorities, and must include how social, environmental and corporate governance considerations, such as the environmental impact of fossil fuels, are taken into account. Authorities must have regard to their fiduciary duty to scheme members and employers, must consider factors that are financially material to the performance of their investments when setting their investment strategy, and must follow relevant legislation and guidance.

We expect councillors to uphold the Nolan principles, which include selflessness, integrity, objectivity, and accountability, because they are essential for maintaining public confidence in local democracy. The government is clear that any councillor elected by local people to serve their interests must continue to do so as their highest priority.

Currently, the Local Authorities (Members' Allowances) (England) Regulations 2003 does not require local authorities to publish information relating to pension payments in the annual statement of payments to councillors. A consultation was launched on 13 October on providing access to the Local Government Pension Scheme to mayors and councillors and remains open until 22 December.

The government has increased funding for homelessness services by £316 million to a total of more than £1 billion this year to prevent rises in the number of families in temporary accommodation and help to prevent rough sleeping.

This includes an additional £69.9 million announced last month for the Rough Sleeping Prevention and Recovery Grant, taking total investment through this grant to more than £255 million this year. We will publish our cross-Government homelessness strategy later this year which will set out the actions needed across central and local government and the homelessness sector to tackle homelessness and rough sleeping.

We will bring to the House, for approval, a Structural Changes Order, which will provide for the establishment of the two new councils, abolish the existing councils, and make the necessary electoral arrangements, including replacing the scheduled County and District elections in May 2026 with elections to the new councils. The legislation will also extend the terms of office for current councillors by 11 months, covering the interim period. This is standard practice and avoids the cost and disruption of holding elections for short-term posts in councils which are to be abolished.

The existing rules in place for the conduct of local council elections will apply to the elections for the new councils, and these will include provisions designed to uphold the integrity of the electoral process, for example, the requirement for voters in polling stations to show approved ID.

The simpler structures delivered through reorganisation will improve democratic accountability as residents know who to look to and it is clearer who is responsible for what.

It is the government’s clear expectation that councils will take reasonable steps to bring empty homes in their area back into use. The premium is one of several levers councils have, to encourage owners of empty homes to bring them back into use. As we outlined in the English Devolution White Paper, we intend to strengthen the ability of councils to take over the management of empty homes. Further details will follow in due course.

Council tax is managed by local authorities, who decide what level of council tax they wish to set. This will reflect the service needs of each area having taken account of their other sources of income. It will also reflect historic council tax decisions taken by local authorities over several decades. The government maintains the referendum principles and authorities who choose to increase their council tax above this must obtain the approval of voters.

The Government remains committed to keeping all taxes and elements of the local government finance system under review. As part of the Fair Funding Review 2.0, for example, the government has consulted on proposals to fully account for how much different areas can raise from council tax within grant funding allocations.

Local Government Pension Scheme administering authorities set the investment strategies for their funds, and must follow relevant legislation and guidance. Authorities are legally required to comply with UK sanctions, including restrictions on dealings with designated individuals, entities, and countries.

The consultation launched on 13 October 2025 proposes that mayors and councillors in England should have access to the LGPS, including the Mayor of London and London Assembly Members. The overall cost is projected to increase employer contributions by an estimated £40-45 million per year.

The Business Rates Retention System was designed to be “reset” periodically to update the way it redistributes locally retained business rates between local authorities – a core aspect of the system. The reset will fundamentally improve the way we fund local authorities, ensuring funding is targeted where it is needed most, based on an updated assessment of need. As set out in the Fair Funding Review 2.0 consultation, to smooth the delivery of the reset the government is proposing to offer increased protection to local authorities’ business rates income across the multi-year settlement period – further detail will be set out at the Policy Statement.

By fixing these foundations, the sector will be better placed to invest in and drive local growth. Business rates growth that comes on stream after the reset would be retained for the duration of the future reset period, continuing to reward authorities for local business rates growth.

Earlier this year, the government provided funding to support councils preparing proposals, the first time that such funding was made available in partnership with the sector, we continue to provide practical support advice on preparing for reorganisation.

We expect councils to be able to meet transition costs from existing budgets, including from the flexible use of capital receipts. However, we are open to discussions with any council that may have concerns about its financial position.

Local authorities are responsible for their own borrowing and investment decisions and managing their assets. They must comply with statutory duties and guidance to ensure that their capital strategies are prudent, affordable and sustainable. In general, as with previous rounds of local government reorganisation, there is no proposal for council debt to be addressed centrally or written off as part of reorganisation.

The Department does not routinely collect data on the position of authorities’ assets and liabilities, Authorities are required, however, to report their financial position in their Annual Statement of Accounts. Authorities are also required to provide financial returns to Government on a quarterly and annual basis, including information on borrowing and capital financing requirements, and these are published on gov.uk here.

I refer the hon. Member to the Written Ministerial Statement made on 28 October (HCWS998) where we announced our commitment to repay in-principle £500 million of Woking Borough Council’s debt in 2026-27. This is a significant and unprecedented commitment given historic capital practices at the Council. It reflects our acknowledgement that, even after the rationalisation of Woking’s historic assets, there is significant unsupported debt held by the Council that cannot be managed locally. Any support must take into account value for money for the local and national taxpayer and the Council’s continued commitment to reduce debt as far as possible within their local capacity.

Local authorities are responsible for their own borrowing and investment decisions and managing their assets. They must comply with statutory duties and guidance to ensure that their capital strategies are prudent, affordable and sustainable. In general, as with previous rounds of local government reorganisation, there is no proposal for council debt to be addressed centrally or written off as part of reorganisation.

The Department does not routinely collect data on the position of authorities’ assets and liabilities, Authorities are required, however, to report their financial position in their Annual Statement of Accounts. Authorities are also required to provide financial returns to Government on a quarterly and annual basis, including information on borrowing and capital financing requirements, and these are published on gov.uk here.

I refer the hon. Member to the Written Ministerial Statement made on 28 October (HCWS998) where we announced our commitment to repay in-principle £500 million of Woking Borough Council’s debt in 2026-27. This is a significant and unprecedented commitment given historic capital practices at the Council. It reflects our acknowledgement that, even after the rationalisation of Woking’s historic assets, there is significant unsupported debt held by the Council that cannot be managed locally. Any support must take into account value for money for the local and national taxpayer and the Council’s continued commitment to reduce debt as far as possible within their local capacity.

I refer the hon. Member to the answers given to Question UIN 60179 on 19 June 2025 and to Question UIN 62328 on 30 June 2025.

Councils in Cambridgeshire and Peterborough are due to submit their final proposals for local government reorganisation by 28 November. The government will then launch a statutory consultation before deciding which, if any, to implement. Decisions on the most appropriate option for each area will be judgements in the round, having regard to the criteria in the statutory guidance, the consultation responses received and all other relevant information.

The exact timings will depend on the proposals received and the decision taken on which proposal, if any, to implement. It is anticipated that a consultation could be launched in the New Year with decisions on which proposal to implement potentially announced before the summer recess to allow the legislation to be made which, subject to Parliamentary approval, would allow for elections to the new unitary authorities on 6 May 2027 with the new authorities going live on 1 April 2028.

I refer the hon. Member to the answers given to Question UIN 60179 on 19 June 2025 and to Question UIN 62328 on 30 June 2025.

Councils in Cambridgeshire and Peterborough are due to submit their final proposals for local government reorganisation by 28 November. The government will then launch a statutory consultation before deciding which, if any, to implement. Decisions on the most appropriate option for each area will be judgements in the round, having regard to the criteria in the statutory guidance, the consultation responses received and all other relevant information.

The exact timings will depend on the proposals received and the decision taken on which proposal, if any, to implement. It is anticipated that a consultation could be launched in the New Year with decisions on which proposal to implement potentially announced before the summer recess to allow the legislation to be made which, subject to Parliamentary approval, would allow for elections to the new unitary authorities on 6 May 2027 with the new authorities going live on 1 April 2028.

I refer the hon. Member to the answers given to Question UIN 60179 on 19 June 2025 and to Question UIN 62328 on 30 June 2025.

Councils in Cambridgeshire and Peterborough are due to submit their final proposals for local government reorganisation by 28 November. The government will then launch a statutory consultation before deciding which, if any, to implement. Decisions on the most appropriate option for each area will be judgements in the round, having regard to the criteria in the statutory guidance, the consultation responses received and all other relevant information.

The exact timings will depend on the proposals received and the decision taken on which proposal, if any, to implement. It is anticipated that a consultation could be launched in the New Year with decisions on which proposal to implement potentially announced before the summer recess to allow the legislation to be made which, subject to Parliamentary approval, would allow for elections to the new unitary authorities on 6 May 2027 with the new authorities going live on 1 April 2028.

Councils in Cambridgeshire and Peterborough are due to submit their final proposals for unitary local councils by 28 November. We understand the importance of communities having their say and have been clear on the importance of councils engaging with local residents and organisations as they develop their proposals.

The Government will launch a statutory consultation before deciding which proposal, if any, to implement. I anticipate this will be launched in the New Year. It would be inappropriate for Ministers to comment at this stage or give a view on specific unitary proposals, or to pre-empt future decisions under the statutory process.

Councils in Cambridgeshire and Peterborough are due to submit their final proposals for unitary local councils by 28 November. We understand the importance of communities having their say and have been clear on the importance of councils engaging with local residents and organisations as they develop their proposals.

The Government will launch a statutory consultation before deciding which proposal, if any, to implement. I anticipate this will be launched in the New Year. It would be inappropriate for Ministers to comment at this stage or give a view on specific unitary proposals, or to pre-empt future decisions under the statutory process.

The Pride in Place Strategy sets out how we will deliver up to £5 billion in funding and support to 339 places experiencing the highest levels of deprivation, with two key funding streams.

Our Pride in Place Programme will support 244 neighbourhoods with up to £20 million of flexible funding and support over 10 years to unlock the potential of the place they call home. We have used metrics that identify ‘double-disadvantaged’ neighbourhoods – those suffering from a combination of material deprivation and low social capital. The full place selection methodology is set out here.

The Pride in Place Impact Fund provides around £150 million to a further 95 places to make immediate improvements to high streets, community venues and public spaces across the next two years. This funding has been targeted at the places most in-need using deprivation and community pride measures. The full place selection methodology is set out here.

Open and green spaces are an essential part of local social infrastructure and must be protected for future generations. The current system of protections for public recreational green space is fractured and complex, and that is why government intend to review to clarify the current protections for public recreational green spaces.

We intend to analyse the effectiveness and usability of those protections, to simplify the system, ensure consistency for developers and local authorities and empower communities to protect valued spaces.

The government is committed to working at pace on this to ensure clarity is brought to the system. Details of the review will be announced in due course.

The forecast costs of Retail, Hospitality and Leisure relief for 2024-25 and 2025-26 is published on gov.uk here.

The subject of flags has been raised by numerous local authorities in a variety of contexts and meetings across England. My department engages with local authorities day in and day out in a variety of different contexts. While discussions on flags have been prominent in many conversations with officials across the department, the information about these conversations is not held centrally and could only be provided at disproportionate cost of time and resource to the department.

My department has signposted councils to existing guidance on flag flying, and has not provided any new guidance or interpretation of the existing guidance.

This government is determined to drive up standards in the private parking sector and welcomes the support and views of the RAC, along with other motoring groups and parking industry representatives.

In accordance with the Private Parking (Code of Practice) Act 2019, the government is preparing a code of practice that provides guidance on the operation and management of private parking facilities.

The government has recently consulted on its proposals for the code and will respond in due course.

At Spending Review 2025, the government conducted the first zero-based review (ZBR) of department budgets in 18 years, with every line of spending scrutinised to ensure value for money.

Through the zero-based review, the Ministry of Housing, Communities and Local Government carried out a line-by-line review of its current budgets. The review involved differing levels of granularity depending on the type and size of expenditure under review.

To ensure consistency in approach, cross-government guidance set expectations for the level of granularity each review should consider, recommending that departments review all spending within individual programme expenditure – at a minimum reflecting any lines of spending in excess of £1m per annum.

Savings identified through this process will support delivery of the government's commitment for all departments to deliver at least 5% savings and efficiencies by 2028-29.

Protecting communities from flooding is a key priority for this Government. Fire and Rescue Authorities already have duties under the Civil Contingencies Act 2004 to prepare for emergencies, including major flooding. However, we recognise the interest in creating a statutory duty for flood rescue and officials are working with DEFRA, as lead government department for flooding, to consider the wider implications of this.

MHCLG supports Fire and Rescue Authorities in responding to flood incidents by providing national resilience High Volume Pump (HVP) capabilities. These are available to be used by Fire & Rescue Services across the country during major flood incidents. Additionally, DEFRA hold the Flood Rescue National Asset Register, a list of teams or assets that voluntarily join the register and maintain availability for national deployment in England.

A Remediable Service Statement sets out the benefits options available to members of the Firefighters’ Pension Scheme in order to remedy the discrimination found in McCloud. Delivery is managed locally by Fire and Rescue Authorities (FRAs), who may decide to extend the deadline beyond March 2025 in certain specific circumstances. Where an FRA has made such a decision, members may have to wait longer to receive the necessary information to make a decision regarding which pension benefits they wish to receive.

Through the English Devolution and Community Empowerment Bill, we are introducing a new community right to buy to give communities stronger powers to protect a range of assets which are important to them.

This will help to ensure that community owned businesses have the spaces they need to operate effectively, meeting the needs of the community and benefiting the local economy.

On 25 September the government announced its flagship Pride in Place Programme, which will provide up to £20 million in flexible funding and support to 244 of Great Britain’s most in-need neighbourhoods over the next decade. The Stanley South neighbourhood in North Durham was selected as one of the areas to receive long-term funding and support from the programme.

This investment will help build a stronger community in Stanley South, create a thriving local place, and empower residents to take back control of their neighbourhood. Funding will support a locally led Pride in Place plan shaped around local priorities, with the community represented through a dedicated Neighbourhood Board to ensure that investment reflects local needs and ambitions.

The Department commissioned an evaluation of the Community Ownership Fund in May 2023 to measure the social and economic impacts of different kinds of asset ownership, which will conclude in March 2026.

Interim findings will be published in the coming months highlighting the impact of the funding. A final report will be published in Spring 2026.

The evaluation will assess the impact of assets across a range of different types of geography including assets based in rural areas.

The Ministry of Housing, Communities and Local Government currently has no contracted influencers directly through the department or via marketing agencies.

The government values the vital role played by supported housing in helping older, disabled and other vulnerable people to live independently and well, and the contribution it makes to wider government objectives, including tackling rough sleeping and homelessness. I have been fully briefed on the challenges facing the supported housing sector and, together with my officials, I am committed to working together with the sector on the issues.

The Department consulted on a proposed licensing regime and standards for supported housing between 20 February 2025 and 15 May 2025. A government response to the consultation will be published as soon as possible.

The Department is working closely with supported housing providers and stakeholders to ensure that standards and licensing are proportionate and that implementation is carefully planned, to avoid any unintended consequences.

The Department will continue to work closely with supported housing providers and stakeholders as implementation of the measures set out in the Act proceeds.

Under the Localism Act 2011, councillors must declare certain business and wider financial interests they might have, including all employment and any beneficial interest in companies if the interest is within the local authority area or if it exceeds a specified value.

These details are published in full on the local authority’s register of interests unless the councillor and monitoring officer agree disclosure could expose the councillor or a connected person to violence or intimidation and class it is a ‘sensitive interest’.

Government guidance on councillor interests is published online.

It is for councils to decide whether to charge the premium in their area, taking account of local circumstances. The Department has introduced a number of exceptions to the empty homes premium which came into effect from April 2025. These include exceptions for up to a year for dwellings actively marketed for sale or let and for dwellings which is or would be the sole or main residence of a member of the armed services, who has been provided with a dwelling as a result of such service. In addition to mandatory exceptions councils have the discretionary power to set their own local exceptions to premiums or offer discounts. The government has published guidance on the implementation of premiums and exceptions and is available here.

The government remains committed to keeping all taxes and elements of the local government finance system under review and will consider options for reform where there is clear evidence that change would deliver better outcomes for residents and councils alike.

The Government has not issued guidance to billing authorities on this issue. Council tax is a local tax and administered by local authorities. It is therefore for them to manage and address any potential cases of avoidance or evasion in the council tax system.

All properties are generally liable for either council tax or business rates. Whether a property is assessed for council tax or business rates will depend on whether it is assessed being primarily domestic (council tax) or non-domestic (business rates). There is no mandatory exemption in the council tax system for dwellings which are used for asylum purposes. To the extent that any asylum seekers accommodation is in a non-domestic use, no specific exemption is provided from business rates for such purposes.

The business rates retention system (BRRS) was introduced in April 2013 to give authorities a direct financial interest in business rates, recognising their role in the collection of the tax. Percentage shares of business rates income collected are allocated to the central share (to be paid to central government) and the local share (retained locally by local authorities, including Surrey Heath) in the annual Local Government Finance Settlement (LGFS). The most recent version of the LGFS, for 2025-26, is published on gov.uk here. We will set out the breakdown over the 3 years of the multi-year settlement at the provisional LGFS later this year.

Details of the business rates collected annually by local authorities are available on gov.uk here. This sets out the amounts retained locally and paid over to central government.

Receipts collected by central government are paid into the consolidated fund and used for the purpose of funding expenditure on local government.

The Government response to the Strengthening the standards and conduct framework for local authorities in England consultation was published on 11 November.

The department does not have a specific policy on commissioning publicity material in foreign languages. The department provides published content in additional languages where appropriate and on a case-by-case basis.

This information is not held by MHCLG, DBT or HM Land Registry.

The government recognises that supported housing is an important part of the delivery of social homes for people with care and support needs, including for older people and disabled working-age adults with personal care needs. My Department and the Department for Heath and Social Care coordinate closely on supported housing.

At the Spending Review, the government announced £39 billion for a new Social and Affordable Homes Programme over 10 years from 2026-27 to 2035-36. We want to see new supply of supported housing in England through the new programme, in greater numbers and also across a diverse range of cohorts and housing types. This includes older people’s housing, specialist housing for those with complex needs, such as long-term housing for people with learning disabilities, autism or mental health issues, and transitional housing for those experiencing or at risk of rough sleeping and homelessness or from domestic abuse. Many of the Established Mayoral Strategic Authorities have also indicated supported housing amongst their local priorities in relation to the programme.

We know that supported housing can often cost more to deliver. In the new programme, while we will maintain the principle that all bids will be assessed for value for money based on their particular circumstances, flexibility on grant rates has been built in for accommodation where the level of design and adaptation results in higher costs. We would encourage providers to come forward with ambitious bids.

The commissioning of local housing-related support services is for local authorities to determine. Local authorities are best placed to plan and decide on local spending priorities that meet the needs of their local population. Through the Supported Housing (Regulatory Oversight) Act, local authorities will be required to produce supported housing strategies to assess current and future need for supported housing in their area. The strategies will assist local authorities and housing providers with long-term planning and delivery to meet demand.

Part 4 of the Building Safety Act 2022 requires that building safety risks in Higher Risk Buildings are assessed, managed and controlled. The assessment must be suitable and sufficient and all reasonable steps must be taken to manage and control the building safety risks.

The Act does not set out specific standards that should be used. However, standards and guidance relevant to other regulatory regimes such as the Regulatory Reform (Fire Safety) Order 2005 and BS 9792:2025 Fire Risk Assessment. Housing. Code of Practice will be relevant. Assessors can also refer to the published criteria used by the Building Safety Regulator for Building Assessment Certificate applications.

The assessment of ‘life critical fire safety defects’ does not form part of the Act. It is instead a feature of the Developers’ Remediation Contract and the Responsible Actors Scheme, which encompass a wider range of buildings.

The government is aware of concerns about poor practice from a number of parking operators and is determined to raise standards.

In accordance with the Private Parking (Code of Practice) Act 2019, the government is preparing a code of practice containing guidance about the operation and management of private parking facilities.

The government has recently consulted on its proposals for this new code. The consultation closed on 26 September, and the government will respond in due course.

As set out in the definition of ‘the setting of a heritage asset’ in the National Planning Policy Framework, its extent is not fixed and may change as the asset and its surroundings evolve. It is therefore for the decision maker to decide what the setting of a particular heritage asset is when considering a relevant planning application.