Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what discussions his Department has had with the Birmingham City Council Commissioners on the potential financial impact of the cancellation of the Birmingham Highways PFI contract.

As part of the statutory intervention that commenced in October 2023, Commissioners continue to support Birmingham City Council’s improvement and recovery. My department regularly engages with both the Council and Commissioners, in line with standard practice, alongside receiving regular updates on progress, including on the Council’s financial sustainability and any specific financial pressures faced by the council.

Arrangements relating to the Birmingham Highways PFI contract are led by the Department for Transport. This government has taken significant steps to support councils financially, including Birmingham City Council, through the Fair Funding Review 2.0. The Local Government Finance Settlement has made up to £2,090m available in Core Spending Power for Birmingham City Council in 2028-29, which means that under this government Core Spending Power will increase by 45% from 2024-25 to 2028-29.