HANSARDCommons19 Jun 20252 contributions

Housing, Communities and Local Government

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Local Government Best Value: Thurrock Council

The Minister for Local Government and English Devolution (Jim McMahon)
Labour (Co-op)Oldham West, Chadderton and Royton
As I have previously stated when updating the House, this Government are committed to resetting the relationship with local and regional government, and to establishing partnerships built on mutual respect, collaboration and meaningful engagement. Local councils must be fit, legal and decent, and this Government are taking the action necessary to fix the foundations of local government. I am today updating the House on the steps that we are taking to support Thurrock council to recover and reform.
I am today publishing the commissioners’ most recent report, which I received in May. It is clear that the council is in a very different place from where it was when the previous Government first appointed commissioners to it in September 2022. I want to commend the council’s members and officers and the commissioners for the improvements that they, together, have made; and I am pleased that the commissioners consider that the council
“continues to own the recovery agenda”.
However, the issues that the council faced at the start were both broad and deep, and the commissioners’ fifth report makes it clear that the recovery remains fragile, as the improvements still need to be embedded across the organisation.
While progress has been made to address its historical financial accounts and governance, the council still relies on Government support to set a balanced budget and there remains an annual structural deficit. The council’s general fund debt position is estimated at £800 million by the end of 2025-26. The Government have indicated that we will provide an initial tranche of financial support for debt repayment for Thurrock council in 2026-27, ahead of local government reorganisation. We will continue to work with the council to ensure that any support represents value for money for local and national taxpayers.
The council still needs to evidence deliverable plans to make corporate transformational savings to secure sustainable services, and there remains a need for it to strengthen its internal controls, especially across internal audit and risk management. A robust transformation plan is needed to deliver the council’s proposed operating model and meet savings targets. Organisational capacity challenges remain and the commissioners consider that the council has not yet
“demonstrated that it has the capacity and capability to sustain its own journey of continuous improvement”.
Having considered the report carefully, I am satisfied that the council is not yet meeting its best value duty.
While proposals for local government reorganisation and devolution present the council and its residents with real opportunities, it is vital to ensure that the council has the capacity and capability to continue to drive its own recovery and reform alongside the implementation of either or both of these substantial change programmes.

Social Housing Local Connection Test Exemptions

The Secretary of State for Housing, Communities and Local Government (Angela Rayner)
LabourAshton-under-Lyne
In his conference speech on 24 September 2024, the Prime Minister set out this Government’s commitment to supporting the most vulnerable to access social housing.
To support the delivery of that commitment, I have today laid regulations to exempt certain victims of domestic abuse and young care leavers from any local connection tests for social housing applied by local councils in England in order to facilitate their access to social housing.
Victims of domestic abuse and young care leavers often have to leave their local area for their own safety or to receive suitable support and therefore struggle to meet local connection tests in places where they would best be able build a safe and stable life. We know that most councils use the flexibilities available to them to exempt care leavers and victims of domestic abuse from local connection tests, but we must ensure that these exemptions are consistently applied.
The regulations laid today will ensure that this potential barrier will be removed and that they will no longer need to meet a local connection test for social housing. The regulations will come into force on 10 July.
Statutory guidance will be updated to reflect these changes. This includes specific guidance on improving access to social housing for victims of domestic abuse to ensure that victims can rebuild their lives away from abuse and harm. Statutory guidance will also be updated to ensure that councils are giving appropriate priority for care leavers who wish to stay in the area where they were placed.
These regulations follow those made in December, which exempted all former members of the regular armed forces from any local connection test for social housing, regardless of when they last served.

Local Government Best Value: Thurrock Council

The Minister for Local Government and English Devolution (Jim McMahon)

Labour (Co-op)Oldham West, Chadderton and Royton

As I have previously stated when updating the House, this Government are committed to resetting the relationship with local and regional government, and to establishing partnerships built on mutual respect, collaboration and meaningful engagement. Local councils must be fit, legal and decent, and this Government are taking the action necessary to fix the foundations of local government. I am today updating the House on the steps that we are taking to support Thurrock council to recover and reform.

I am today publishing the commissioners’ most recent report, which I received in May. It is clear that the council is in a very different place from where it was when the previous Government first appointed commissioners to it in September 2022. I want to commend the council’s members and officers and the commissioners for the improvements that they, together, have made; and I am pleased that the commissioners consider that the council

“continues to own the recovery agenda”.

However, the issues that the council faced at the start were both broad and deep, and the commissioners’ fifth report makes it clear that the recovery remains fragile, as the improvements still need to be embedded across the organisation.

While progress has been made to address its historical financial accounts and governance, the council still relies on Government support to set a balanced budget and there remains an annual structural deficit. The council’s general fund debt position is estimated at £800 million by the end of 2025-26. The Government have indicated that we will provide an initial tranche of financial support for debt repayment for Thurrock council in 2026-27, ahead of local government reorganisation. We will continue to work with the council to ensure that any support represents value for money for local and national taxpayers.

The council still needs to evidence deliverable plans to make corporate transformational savings to secure sustainable services, and there remains a need for it to strengthen its internal controls, especially across internal audit and risk management. A robust transformation plan is needed to deliver the council’s proposed operating model and meet savings targets. Organisational capacity challenges remain and the commissioners consider that the council has not yet

“demonstrated that it has the capacity and capability to sustain its own journey of continuous improvement”.

Having considered the report carefully, I am satisfied that the council is not yet meeting its best value duty.

While proposals for local government reorganisation and devolution present the council and its residents with real opportunities, it is vital to ensure that the council has the capacity and capability to continue to drive its own recovery and reform alongside the implementation of either or both of these substantial change programmes.

Social Housing Local Connection Test Exemptions

The Secretary of State for Housing, Communities and Local Government (Angela Rayner)

LabourAshton-under-Lyne

In his conference speech on 24 September 2024, the Prime Minister set out this Government’s commitment to supporting the most vulnerable to access social housing.

To support the delivery of that commitment, I have today laid regulations to exempt certain victims of domestic abuse and young care leavers from any local connection tests for social housing applied by local councils in England in order to facilitate their access to social housing.

Victims of domestic abuse and young care leavers often have to leave their local area for their own safety or to receive suitable support and therefore struggle to meet local connection tests in places where they would best be able build a safe and stable life. We know that most councils use the flexibilities available to them to exempt care leavers and victims of domestic abuse from local connection tests, but we must ensure that these exemptions are consistently applied.

The regulations laid today will ensure that this potential barrier will be removed and that they will no longer need to meet a local connection test for social housing. The regulations will come into force on 10 July.

Statutory guidance will be updated to reflect these changes. This includes specific guidance on improving access to social housing for victims of domestic abuse to ensure that victims can rebuild their lives away from abuse and harm. Statutory guidance will also be updated to ensure that councils are giving appropriate priority for care leavers who wish to stay in the area where they were placed.

These regulations follow those made in December, which exempted all former members of the regular armed forces from any local connection test for social housing, regardless of when they last served.