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

To ask the Secretary of State for Housing, Communities and Local Government, what assessment her Department has made of the potential impact of the level of (a) debt and (b) liabilities held by local authorities on local government reorganisation.

On 5 February, the Government issued invitations to councils in two-tier areas in England and neighbouring unitary councils to prepare proposals for local government reorganisation. It is for councils to develop robust and sustainable proposals that are in the best interests of their whole area.

It is the responsibility of councils to manage their budgets, and it is standard for councils to borrow and to hold debt, which they will do in the normal course of business. Local government reorganisation does not change this.