Committee publication · Correspondence · 15 April 2026

Letter from the Minister of State for Local Government and Homelessness to the Chair dated 24 March 2026 concerning support for local councils

From: Housing, Communities and Local Government Committee

Summary

Minister Alison McGovern updates the HCLG Committee Chair on government support for four councils in financial difficulty: Nottingham City Council (new Directions and Ministerial Envoys appointed), Croydon (Commissioners' first report published, transformation plan critical), Warrington (early progress noted but financial challenges remain), and Woking (sixth report shows governance improvements but asset disposal risks persist).

Key findings

Nottingham City Council: Secretary of State issues formal Directions under Local Government Act 1999; Sharon Kemp appointed as first Ministerial Envoy with second appointment pending; reduced but continued statutory support package to secure Best Value Duty compliance.
London Borough of Croydon: Commissioners' first report published; Council must accelerate transformation plan and savings delivery to move away from reliance on Exceptional Financial Support; political and corporate leadership must drive change at pace.
Warrington Borough Council: Ministerial Envoys' first report shows early progress (Improvement and Recovery Plan adopted, leadership appointments made, governance strengthened) but significant financial challenges remain requiring urgent action.
Woking Borough Council: Sixth Commissioners' report shows continued commitment and progress in governance and finance but substantial challenges persist, particularly with asset disposal programme; transition to new West Surrey unitary authority requires capability and capacity to deliver at pace.

Tone

Procedural

Topics

local-governmentfinancial-supportcouncil-interventionpublic-financegovernance

Key actors

Alison McGovern MP (Minister of State for Local Government and Homelessness), Florence Eshalomi MP (Chair of HCLG Select Committee), Sharon Kemp (Ministerial Envoy, Nottingham City Council), Nottingham City Council, London Borough of Croydon, Warrington Borough Council, Woking Borough Council

Notable line

“It is now vital that the political and corporate leadership at the Council drive forward at pace the necessary changes to help return longer term financial sustainability and improved service …”

Key Quotes

“… the Secretary of State is minded to provide a further but reduced package of statutory support to Nottingham City Council, overseen by two Ministerial Envoys.”
— Alison McGovern MP · Nottingham City Council intervention

“Our clear expectation is that the Authority will remain responsible for driving its own improvement, with the Ministerial Envoys providing support in an advisory and mentoring capacity.”
— Alison McGovern MP · Nottingham City Council governance approach

“It is now vital that the political and corporate leadership at the Council drive forward at pace the necessary changes to help return longer term financial sustainability and improved service delivery to Croydon.”
— Alison McGovern MP · Croydon Council transformation requirements

“It is clear that delivery of the Council's transformation plan and associated savings is now essential to help move Croydon away from reliance on Exceptional Financial Support.”
— Alison McGovern MP · Croydon Council financial sustainability

“I am particularly encouraged by the Council's subs tantial progress in its governance, and am assured that a robust approach to risk is now in place.”
— Alison McGovern MP · Woking Borough Council progress assessment

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Source · parliament.uk record ↗