To ask the Secretary of State for Housing, Communities and Local Government, whether her Department maintains an internal list or other assessment of local authorities considered to be at heightened risk of issuing a section 114 notice or requiring Exceptional Financial Support during the 2026–27 financial year; and whether Ministers have received advice identifying councils considered to present the greatest financial risk.

The department undertakes regular engagement with local councils, including on their financial positions. The final 2026-27 Local Government Finance Settlement makes available £78 billion in Core Spending Power for local authorities in England in 2026-27, a 6.1% increase compared to 2025-26. By the end of the multi-year Settlement (2028-29), the government will have provided a 15.5% increase in Core Spending Power for local authorities in England, worth over £11.4 billion, compared to 2025-26. Our reforms will ensure that this funding is allocated fairly, and that the places and services which need it most are supported.

Any council that has concerns about its ability to set or maintain a balanced budget should approach the department in the first instance where we will treat all discussions in confidence.