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

To ask the Secretary of State for Housing, Communities and Local Government, whether (a) strategic authorities and (b) combined authority mayoral precepts will have any liability for the historic debts of local authorities in their area following local government restructuring.

Legislation set outs that during local government reorganisation, property, rights and liabilities, including debt, transfer from the old councils to the new councils for that area. It is the responsibility of councils to manage their budgets, and it is standard for councils to borrow and to hold debt. In general, as with previous restructures, there is no proposal for council debt to be addressed centrally or written off as part of reorganisation. The Government has committed to unprecedented debt repayment support for Woking and Thurrock councils, given exceptional unsupported debt in these councils.

The ability to issue a mayoral precept has existed in law since 2017. The English Devolution and Community Empowerment Bill will allow mayors to spend a precept across all functions of a strategic authority. Introducing a precept is a choice for the elected mayor, who must determine the potential benefits when balanced against the costs for residents.