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Local Government Best Value

12 December 2024

Proposing MP
Jim McMahon Lab Co-op
Oldham West, Chadderton and Royton
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
View on Parliament.uk -->

At a Glance

Issue Summary

The statement addresses statutory interventions in Croydon and Nottingham local councils due to financial distress and governance issues.

Action Requested

The government is providing funding injections worth over £4 billion including a Recovery Grant, Social Care Grant, Children’s Social Care Prevention Grant, and additional funds for kinship allowances and foster placements. The government also plans legislative measures to crack down on profiteering in children's social care and enhance Ofsted powers.

Key Facts

  • Croydon has a General Fund debt of £1.3 billion.
  • Nottingham issued two Section 114 notices, the second in November 2023.
  • The government is injecting over £4 billion into local government funding including £600 million Recovery Grant and £680 million uplift to Social Care Grant.
  • A Children’s Social Care Prevention Grant worth £250 million has been introduced.
  • Additional £44 million for a Kinship Allowance pilot programme.
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