To ask His Majesty's Government what financial support they are providing to local councils at risk of receiving section 114 notices within the next five years.
Answered on
29 January 2024
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.
Taking into account new funding announced on 24 January, on top of what was announced at the provisional Local Government Finance Settlement in December, local government in England will see an increase in Core Spending Power of up to £4.5 billion next year, or 7.5% in cash terms, an above-inflation increase, rising from £60.2 billion in 2023-24 to up to £64.7 billion in 2024-25.
Individual councils are responsible for managing their budgets, and any decision to issue a Section 114 notice 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.