Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government how many local authorities they estimate are on the verge of bankruptcy; and what steps o they plan to take to address this.

The Government monitors the financial health of local authorities on a regular basis using a wide range of data as well as through extensive direct engagement with councils.

In 2023/24, the final Local Government Finance Settlement made available up to £59.7 billion for local government in England, an increase in Core Spending Power of up to £5.1 billion or 9.4% in cash terms on 2022/23.

Individual councils are responsible for managing their budgets, and any decision to issue a Section 114 report is made locally. We stand ready to speak to any council that has concerns about its ability to manage its finances or faces pressures it has not planned for.