Lucy Powell

Lucy Powell

Labour (Co-op) — Manchester Central

Speaking in the House of Commons on 13 February 2025

Debate

Business of the House

Contribution

The hon. Lady raises the important issue of local government finances, and she is right to identify the mess those finances were left in by the previous Government. Many councils had to spend their reserves on statutory services, which is not what they are intended for. We saw council after council going bust month after month under the previous Government, and many more were left in severe debt, like the ones she has described. We have given local government a significant settlement this year, but we recognise that more needs to be done. We need to fix the long-term problems; we need multi-year settlements. I know the transition will be difficult, but the devolution revolution—giving local areas more say and more powers over how they spend and raise their revenue—will, in time, lead to more secure and sustainable funding for local government. I will ensure the relevant Minister comes to this House with regular updates.

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