Asked by: David Davis (Conservative - Goole and Pocklington)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment has been made of the adequacy of the transitional funding arrangements in the Fair Funding Review in ensuring the sustainable operation of local authorities.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
The government published the Local government finance policy statement 2026-27 to 2028-29 and response to the Fair Funding Review 2.0 on Thursday 20 November, which set out the government's plans to introduce a fairer and evidence-led funding system. The government also published the Provisional Local Government Finance Settlement 2026-2027 to 2028-2029 on Wednesday 17 December 2025.
The government has been clear that we will support local authorities to manage their updated funding positions through a package of transitional arrangements, including by introducing changes over the multi-year Settlement and protecting councils’ income, including locally retained business rates growth. These arrangements will support councils to their new allocations in a sustainable way. Provisional multi-year funding allocations were published at the provisional Local Government Finance Settlement on 17 December 2025, including details on the package of transitional support for councils who would otherwise see their funding fall as a result of the introduction of the reformed system.
The government recognises the challenging financial context for local authorities as they continue to deal with the legacy of the previous flawed system. We will therefore continue to have a framework in place to support those in the most difficult positions. We also recognise that local authorities are continuing to face significant pressure from the impact of Dedicated Schools Grant (DSG) deficits on their accounts and that local authorities will need continued support during the transition to a new Special Educational Needs and Disabilities (SEND) system. We will provide further detail on our plans to support local authorities with historic and accruing deficits and conditions for accessing such support later in the Local Government Finance Settlement process. The Department for Education will set out plans for reform of the SEND system in the upcoming Schools White Paper, building on the work already done to create a system that’s rooted in inclusion, where children receive high-quality support early on and can thrive at their local school.
The government is considering the responses received following the consultation of the Provisional Local Government Finance Settlement 2026 to 2027 and will set out a position when the final Settlement is published in early February. Between now and the end of the multi-year Settlement, there will be another Spending Review which will determine arrangements for 2029-30 and beyond.
Asked by: David Davis (Conservative - Goole and Pocklington)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what consideration was given to providing additional financial support to local authorities that will have large reductions in Government funding.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
The government published the Local government finance policy statement 2026-27 to 2028-29 and response to the Fair Funding Review 2.0 on Thursday 20 November, which set out the government's plans to introduce a fairer and evidence-led funding system. The government also published the Provisional Local Government Finance Settlement 2026-2027 to 2028-2029 on Wednesday 17 December 2025.
The government has been clear that we will support local authorities to manage their updated funding positions through a package of transitional arrangements, including by introducing changes over the multi-year Settlement and protecting councils’ income, including locally retained business rates growth. These arrangements will support councils to their new allocations in a sustainable way. Provisional multi-year funding allocations were published at the provisional Local Government Finance Settlement on 17 December 2025, including details on the package of transitional support for councils who would otherwise see their funding fall as a result of the introduction of the reformed system.
The government recognises the challenging financial context for local authorities as they continue to deal with the legacy of the previous flawed system. We will therefore continue to have a framework in place to support those in the most difficult positions. We also recognise that local authorities are continuing to face significant pressure from the impact of Dedicated Schools Grant (DSG) deficits on their accounts and that local authorities will need continued support during the transition to a new Special Educational Needs and Disabilities (SEND) system. We will provide further detail on our plans to support local authorities with historic and accruing deficits and conditions for accessing such support later in the Local Government Finance Settlement process. The Department for Education will set out plans for reform of the SEND system in the upcoming Schools White Paper, building on the work already done to create a system that’s rooted in inclusion, where children receive high-quality support early on and can thrive at their local school.
The government is considering the responses received following the consultation of the Provisional Local Government Finance Settlement 2026 to 2027 and will set out a position when the final Settlement is published in early February. Between now and the end of the multi-year Settlement, there will be another Spending Review which will determine arrangements for 2029-30 and beyond.
Asked by: Alex Ballinger (Labour - Halesowen)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, how he plans to support Councils with low council tax bases and entrenched deprivation.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
Following extensive consultation and engagement, we are realigning funding distributed through the Local Government Finance Settlement with need and deprivation. We will target a greater proportion of grant funding towards the most deprived places which need it most, ensuring the best value for money for government and taxpayers.
These updates will account for local circumstances, including for different ability to raise income locally from council tax, and the variation in the cost of delivering services, including between rural and urban areas. By using the most up to date data available, the government will be able to assess local authorities' relative demand for services more effectively. This includes using the most up-to-date 2025 Indices of Multiple Deprivation in our assessment of need.
We introduced the £600 million Recovery Grant in 2025-26 to support the most deprived local authorities which are least able to fund their own services through income raised locally. After years of funding cuts to local government, in which the most deprived places suffered the most, the recovery is not over. Following a large number of representations on the importance of Recovery Grant funding, the government has consulted on its plans to maintain the Recovery Grant across the multi-year Settlement, to enable these places to continue their recovery.
The government is considering the responses received following the consultation of the Provisional Local Government Finance Settlement 2026 to 2027 and will set out a position when the final Settlement is published in early February.
Asked by: Lord Jackson of Peterborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Anderson of Stoke-on-Trent on 23 December 2025 (HL12792), whether (1) Treasury ministers, or (2) their special advisers, had any involvement in media briefings prior to the Budget 2025 which were not issued alongside a Government press release or statement to Parliament.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Treasury, its ministers, and special advisers place the utmost importance on budget security. A leak inquiry is currently underway, alongside a review of security processes to inform future fiscal events.
The Permanent Secretary to HM Treasury told the Treasury Select Committee on 10 December 2025 that he expects the review to conclude ahead of the Spring Statement on 3 March. The outcome of the review will be published.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what due diligence checks were carried out prior to the creation of Ziglu Bank in 2020.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.
On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.
Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.
Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress the FCA has made on its investigation into the administration of Ziglu Bank in June 2025.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.
On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.
Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.
Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the administrator of Ziglu Bank.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Ziglu Limited is an electronic money institution which has been authorised under the Electronic Money Regulations 2011 since September 2020. These regulations require firms to meet important standards before they are allowed to carry out payment services and issue electronic money, and the FCA carries out supervision to ensure that it meets the required standards. Ziglu also provides cryptoasset services and is registered with the FCA for the purposes of ensuring compliance with the Money Laundering Regulations 2017.
On 23 May 2025, the FCA placed restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds. On 7 July, Ziglu entered special administration and the FCA is engaging with the special administrators as appropriate.
Payments and e-money firms are required to safeguard customer funds and segregate these from funds which belong to the firm. The special administrators are working to carry out an assessment of all funds held by Ziglu to establish which are safeguarded for customers, and which belong to Ziglu. However, cryptoasset activities are currently unregulated and Ziglu is not required to safeguard funds or assets which relate to unregulated activities. This means there is no guarantee that cryptoasset customers will receive all or any of their funds or assets back.
Recently, the FCA published new rules coming into force on 7 May 2026 to improve safeguarding standards across the payments sector. The Government has also recently laid legislation to create a comprehensive financial services regulatory regime for cryptoassets.
Asked by: Liz Jarvis (Liberal Democrat - Eastleigh)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help mitigate the potential impact of the (a) removal of the 40% business rates relief and (b) planned revaluation of business rates revaluation on (i) gyms, (ii) swimming pools and (iii) leisure centres.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the answer of 18 November 2025, to Question 87790, on Business Rates: Valuation, what was the increase in aggregate Rateable Values for the serviced office sector as a result of the new valuation methodology.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate she has made of gross business rate receipts in England in (a) 2024-25, (b) 2025-26, (c) 2026-27, (d) 2027-28 and (e) 2028-29.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Ministry of Housing, Communities & Local Government publishes data on the rates collected by councils in England. This data can be found at the following link:
https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2025-to-2026