Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment his Department has made of the potential impact of extending the statutory override for local authorities until the end of 2027/28 on the financial security of those local authorities.
Answered by Alison McGovern
The government recognises that local authorities are continuing to face significant pressure from Dedicated Schools Grant deficits on their accounts. The Ministry of Housing, Communities and Local Government engages regularly with local authorities and the Chartered Institute of Public Finance and Accountancy on the impact of the Dedicated Schools Grant deficits, and in June 2025, we announced a two-year extension to the Dedicated Schools Grant Statutory Override to support local authorities to manage these impacts. We recognise that the size of deficits that some councils may accrue while the Dedicated Schools Grant Statutory Override is in place may not be manageable with local resources alone. 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.
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