In a letter issued today, Secretary of State Angela Rayner was asked to address the substantial legacy liabilities passed to West Northamptonshire Council and neighbouring North Northamptonshire Council when they were formed in 2021. Neither unitary authority received debt forgiveness or comparable financial support packages.
The formal letter was issued by WNC’s Leader, Cllr Mark Arnull, following cross-party backing at last month’s Full Council meeting. Councillors also agreed to seek support from local MPs, collaborate with local government partners, and consider independent legal advice on fair and consistent treatment of local authorities.
The Council highlighted the Government’s recent intervention to provide historic debt relief to several local authorities in Surrey as a significant precedent. It argues that local government reorganisation cannot create financially sustainable authorities if they are expected to absorb substantial historic liabilities without adequate government support, a principle that also applies to Northamptonshire.
“"Our residents have been paying the price for shouldering the debts of the old councils for far too long. We’re asking the Government to apply the same principle to Northamptonshire that it is now applying in Surrey. We are not asking for preferential treatment, only parity for our residents. This is about fairness, consistency and ensuring our taxpayers are not left carrying a burden that should have been addressed years ago. Our residents should not be held back by financial difficulties that arose before their current councils even existed."
Cllr Arnull added: “We have shown that we can manage our finances responsibly and continue to deliver important services for residents. But money spent servicing historic debt is money that cannot be invested in local priorities such as roads, services for vulnerable residents, economic growth and improving places for our communities.”
Since local government reorganisation, West Northamptonshire has focused on maintaining stable finances while continuing to support residents and businesses. Cllr Arnull concluded: “It’s clear that many councillors agree that seeking historic debt forgiveness from the Government is in the best interests of all our communities and we will work together with our local MPs to make the strongest case possible.”
