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Local Government: Reorganisation

Asked by James McMurdockIndependentMinistry of Housing, Communities and Local GovernmentTabled Answered 19 January 2026UIN 102398

The question

To ask the Secretary of State for Housing, Communities and Local Government, with refence to his Department's oral statement of 18 December 2025 on Local Government Reorganisation, Official Report col 1132, what measures will be in place to ensure that council areas undergoing reorganisation do not overspend due to their debts being inherited by a new council area.

Answered by Alison McGovern

On the management of debt, I refer the hon. Member to the answer given to Question UIN 77936 on 13 October 2025. It is the responsibility of councils to manage their budgets, and it is standard for councils to borrow and to hold debt, which they will do in the normal course of business. Local government reorganisation does not change this.

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