More than 40 Tory MPs threaten rebellion over English council funding

Photograph: Shaun A Daley/Alamy

More than 40 Conservative MPs – including seven former cabinet ministers – have threatened Rishi Sunak with a fresh Commons rebellion after writing to demand more funding for councils in England to avoid deep cuts to services.

Warning that urgent action was required to ensure they would back the government in a crunch vote next month, the MPs from all wings of the party said extra financial support was needed to prevent more councils going bust amid a £4bn funding shortfall.

Growing numbers of councils across England warn they face effective bankruptcy amid soaring costs and rising pressure on services, compounded by years of austerity-driven cuts and local missteps. Among the biggest casualties so far are Birmingham and Nottingham, as well as Woking in Surrey and Thurrock in Essex.

The letter, coordinated by the County Councils Network and the county all-party parliamentary group, warned millions of people in traditionally safe Tory seats were facing a “double whammy” of cuts to local services and higher council tax rates.

Senior figures who have signed the letter include the former immigration minister Robert Jenrick – who voted against the government over its Rwanda bill – and former cabinet ministers Priti Patel, Thérèse Coffey, Damian Green and Brandon Lewis.

As a local government secretary under Boris Johnson, Jenrick had been responsible for council funding before he was replaced by Michael Gove in 2021. Four former local government ministers were also signatories, including Jake Berry, the former Tory party chair.

Ministers are now consulting on a financial settlement for local government funding, which will determine how much support councils in England will receive for 2024-25, with a vote due in parliament in early February.

In December, ministers announced a £64bn funding package for English councils, an increase of 6.5% on the amount a year earlier. However, local government leaders warn the plan is insufficient to prevent more councils from going bust, and is reliant on authorities pushing through 5% council tax increases.

Representing 37 county and unitary authorities across England, the County Councils Network said its members were facing “extreme financial pressure” and were on track to overspend by £650m this year, with these councils facing a total £4bn funding deficit over three years.

Writing in the letter to Sunak, the 44 Conservative MPs, alongside one Liberal Democrat and one Labour MP, threatened to vote against the government. “There is still an opportunity to rectify the situation and ensure MPs are able to support the vote on the local government settlement within the House of Commons in early February.

“We would therefore urge you to do all you can to use the final local government finance settlement to provide additional funding for local government to ensure that the councils in our areas can continue to provide the services that our residents depend upon on a regular basis.”

A spokesperson for the government said it was “now considering the responses carefully” to its consultation on the funding settlement. “Councils are ultimately responsible for their own finances, but we remain ready to talk to any concerned about its financial position.”