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

To ask His Majesty's Government what guidance they have provided to existing principal local authorities and shadow unitary authorities about the distribution of assets.

During the local government reorganisation process, councils are expected to continue to operate on a business-as-usual basis. Assets and liabilities remain locally managed by councils until reorganisation is complete. Decisions about the disposal or transfer of assets are matters for individual local authorities to determine.

The Government has issued explanatory guidance to councils undergoing local government reorganisation covering financial and asset‑related decision making. This makes clear that councils should take a responsible approach and avoid actions that could jeopardise the financial sustainability of successor authorities.

The Government plans to release further non-statutory guidance in the coming months, to assist councils undergoing reorganisation in determining a sustainable and equitable division of assets held by existing councils between new unitary authorities.