Local Government Finance

Florence Eshalomi Excerpts

Wednesday 17th December 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Housing, Communities and Local Government Committee.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I thank the Minister for her statement. I know she has been working really hard on this issue since she took on the role a few months ago. She is aware of the many pressing issues facing councils up and down the country—from SEND to temporary accommodation, housing and adult social care—and 14 years of under-investment will not be reversed by one funding settlement. It is therefore important that we continue to work with councils.

This is the first multi-year settlement in a decade, which will help our local leaders in planning for the future and, most importantly, planning for their local residents. I welcome the inclusion of local housing costs in the new funding formula, but ultimately it does not take in local housing allowance, which the Minister knows has been frozen for many years and is still causing a lot of pressure for councils.

The Minister mentioned that the Government will be looking at the council tax freeze in some areas, and at lifting referendum principles. She knows there is growing consensus on wholescale council tax reform instead of us tweaking it. It is the most regressive form of taxation and there is inequality across the country. Will the Minister look at what the Committee’s report says about a wholescale review of council tax banding, so that local leaders can have funding to spend on their local areas, and make sure that other areas see that funding come through?

[Alison McGovern]

I thank the Chair of the Select Committee for that comprehensive run through all the issues. She is right that we need not just funding but policy change to get councils to financial sustainability. I look forward to discussing that with my hon. Friend and her Committee. She also asked about council tax reform, which was not the subject of my statement, but I have no doubt that she will be asking me about it again in the near future.