Andy Carter
Main Page: Andy Carter (Conservative - Warrington South)Department Debates - View all Andy Carter's debates with the Leader of the House
(7 months, 4 weeks ago)
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Penny Mordaunt
The hon. Gentleman will know how to apply for a debate, but he has accomplished his mission today and we are all disappointed to hear about the company walking away from its obligations. I hope it will make good on those obligations, but I will ask the Department for Levelling Up, Housing and Communities whether it can provide the hon. Gentleman’s office with any advice about how he can help the company to come to that conclusion.
Andy Carter (Warrington South) (Con)
The Leader of the House will know that Birmingham City Council was the latest to have to declare an effective bankruptcy because of excessive debt and mismanagement. I have raised my concerns about borrowing at Warrington Council in this House many times. With its borrowing amounting to almost £2 billion—10 times core spending—Warrington Council is not just an outlier, but off the Richter scale in terms of the level of debt that the council has racked up. Is it not time that the Government stopped councils acting like hedge funds? Can we have a debate in Government time on what we can do to effectively manage this situation in local councils? Does the Leader of the House agree that it is time to send in commissioners when councils do not take effective action to reduce their indebtedness?
Penny Mordaunt
I thank my hon. Friend for raising this matter. He is right that, in Labour-run Birmingham, the council blamed everyone else rather than taking responsibility for the situation. It blamed the IT system, the Government and women expecting equal pay. It really must stop passing the buck and take responsibility for its own mess. This comes as a stark warning to Labour-run Warrington Council, which I understand is in debt to the tune of nearly £2 billion and has just approved a £145 million loan to another council, despite that terrible financial situation. I know that my hon. Friend has raised this many times and that the Secretary of State has also asked for an independent review. With regard to other councils that are managing their budgets well, we know that there are still tough times ahead. There are many demands on their services, which is why we have confirmed an almost £60 billion package for local authorities this financial year.