Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Levelling Up, Housing and Communities, what estimate he has made of the number of councils that will issue a section 114 notice in the next 24 months.

The details of in-principle Exceptional Financial Support agreements with councils are published and available on gov.uk.

Councils are responsible for setting their own budgets and taking decisions around spending. Any decision to issue a Section 114 notice is one taken at a local level and is not a matter for the department. The final Local Government Finance Settlement for 2023/24 makes available up to £59.7 billion for local government in England, an increase in Core Spending Power of up to £5.1 billion or 9.4% in cash terms on 2022/23.

The department maintains a regular dialogue with the sector, and we understand the challenges being faced by local government. It is also the case that there have been local failures in financial management and governance in a small number of Councils in recent years; where this is the case the Government will take action, where necessary, to protect tax payer value for money. We stand ready to speak to any council that has concerns about its ability to manage its finances, whatever the cause.