Local Government Finance

(asked on 18th November 2025) - View Source

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

To ask the Secretary of State for Housing, Communities and Local Government, what recent assessment he has made of the adequacy of the financial resilience of metropolitan local authorities; and what steps his Department is taking to support councils implementing section 114 recovery plans.


Answered by
Alison McGovern Portrait
Alison McGovern
Minister of State (Housing, Communities and Local Government)
This question was answered on 26th November 2025

The government is delivering a fairer system and realigning funding with need and deprivation through the first multi-year Local Government Finance Settlement in a decade.

These changes will not fix the challenges facing local government overnight. Reform will take time and we recognise the potential for continued instability as we work to fix the foundations of local government, but these proposals are a fundamental step to improving the sustainability of the sector in the years to come and will allow councils to focus on service delivery and transformation.

Issuing a Section 114 notice is a local decision and one that government has no formal role in. However, the government has now confirmed in the policy statement published on 20 November that there will continue to be a framework in place to support local authorities in the most difficult financial positions and remains committed to working collaboratively with them to work towards financial sustainability.

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