Local authority financial sustainability and the section 114 regime
A response by the government to the Housing, Communities and Local Government Committee's report on local authority financial sustainability and the section 114 regime.
The Ministry of Housing, Communities and Local Government is reforming how local authorities are funded and governed, including new borrowing powers and long-term funding certainty to support net-zero delivery and local services. The reform addresses fragmented short-term funding cycles that prevent strategic planning, particularly for bus services, disabled facilities grants, and place-based carbon reduction. Bills are progressing to establish clearer statutory duties and sustainable funding mechanisms.
A response by the government to the Housing, Communities and Local Government Committee's report on local authority financial sustainability and the section 114 regime.
This sets out our proposals for local authority capital finance and provides an update on our work so far. It clarifies our objectives, what we will do to meet them and what is expected from local authorities.