Steve Reed

Steve Reed

Labour (Co-op) — Streatham and Croydon North

Speaking in the House of Commons on 11 February 2026

Debate

Local Government Finance

Contribution

I am going to make some progress, I am afraid. There are a few councils facing extremely challenging financial pressures that the previous Government turned into a crisis by ignoring their problems for over a decade. In response to requests from those councils, I am giving them flexibility to increase their council tax above referendum principles next year. Unlike the previous Government, we will not agree any increases that could lead to households in these areas paying above national average council tax, but we will not let councils go to the wall and see their residents punished with failing services. These flexibilities will apply to Warrington, Trafford, Worcestershire, Shropshire, North Somerset, Windsor and Maidenhead, and Bournemouth, Christchurch and Poole. One fire authority will also be granted additional flexibility. These are caps, not targets, and no area with additional flexibility will see bills rise above the national average.

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