Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the answer of 23 January 2026, to Question 106138, on Local Government Finance, whether his department holds data on the proportion of the £4.3 billion that was subject to the flexible use of capital receipts provisions; and which individual local authorities utilised the flexible use.
Answered by Alison McGovern
The Flexible Use of Capital Receipts general direction was introduced in 2016 by the previous government and remains substantively unchanged.
This government has not changed the rules on use of capital receipts; not all capital receipts are eligible for use under the general flexibility. For example, under the direction, eligible capital receipts must be genuine disposals outside of the local authorities’ group structure. Nor does the flexibility override any statutory restrictions that may exist on certain types of assets.
The government does not collect specific data on eligible capital receipts held by local authorities.
Use of the flexibility is at the discretion of local authorities but must be compliant with the conditions of the general flexibility and their wider statutory duties. The government is clear that its use should represent value for money and be in the best interests of local residents.
Use of the flexibility is reported annually. The data for 2024/25 can be found here.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →