Local Government: Reorganisation
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to his Department's document entitled Summary of the local government reorganisation process, published on 25 July 2025, if he will help support incoming shadow authorities to ensure that contracts that have been novated are fiscally deliverable for providers.
Answered by Alison McGovern
The Government continues to provide guidance and support to councils throughout the reorganisation process. We have issued explanatory guidance to councils undergoing local government reorganisation on Financial decisions before local government reorganisations and further guidance on decision making. We are working with the Local Government Association and other sector organisations to ensure appropriate support is provided at all stages.
Local authorities are independent financial bodies, and their assets and liabilities, including contracts, will move to new councils. Decisions on service delivery, contracts and if there is any renegotiation of terms with providers, will be a matter for individual local authorities as needed.
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