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

To ask the Secretary of State for Housing, Communities and Local Government, what his policy is on the treatment of surplus funds held by district councils, including West Devon Borough Council and South Hams District Council, in the event that those authorities are incorporated into a new unitary authority; and whether such surpluses will be used to offset the existing debts of other authorities within the proposed unitary structure.

It is expected that assets and liabilities remain locally managed by councils. It is essential that councils continue to deliver their business-as-usual services and duties during and after local government reorganisation.

The Department will continue to operate its stewardship function to ensure councils are meeting their Best Value duty. The 2024 Guidance on Best Value Standards and Intervention describes the characteristics of a well-functioning authority, and in relation to handling assets the sections on governance, use of resources, service delivery and partnerships and community engagement are particularly relevant.