Source · Select Committees · Housing, Communities and Local Government Committee

Recommendation 49

49

Section 114 notices prove unproductive for long-term local authority financial unsustainability.

Conclusion
The process of issuing and responding to a section 114 notice is not a productive solution to financial unsustainability caused by long-term underfunding and increasing responsibilities. The need to avoid a section 114 notice can itself lead to poor financial management. (Conclusion, Paragraph 191)
Government Response

A response document is linked to this report, dated 21 October 2025. Response attribution to this conclusion has not been verified. Read the response document ↗