Local Government: Debt
Commons · Question 28262 · Tabled 8 Sep 2026 · Ministry of Housing, Communities and Local Government · Official record
Answered 15 Sep 2026
Question
Asked by Margaret Mullane
To ask the Secretary of State for Housing, Communities and Local Government, whether the department has considered whether debt restructuring or cancellation will be offered to local authorities struggling with high levels of debt and interest rates.
Answer
Answered by Jim McMahon, 15 Sep 2026
The local government finance framework gives authorities wide freedoms to borrow and invest, enabling them to set their own capital strategies in response to local needs. It is standard for councils to borrow and to hold debt in the normal course of busin...