Political opinion by Cllr Mark Arnull: Levelling up must mean levelling fairly - why Northamptonshire deserves the same debt relief and transitional support as Surrey

The Government’s recent announcement of £500 million in debt forgiveness for Surrey as part of its reorganisation into two new unitary authorities has prompted serious reflection in Northamptonshire. For those of us who led and lived through the reorganisation of our own councils in 2021, the contrast in treatment is not only stark, it is indefensible.

Northamptonshire’s financial crisis in 2018, which led to two Section 114 notices, was one of the most significant in local government history. Yet, despite the scale of the challenge, no debt relief was offered. Instead, our councils were forced to absorb the consequences of past mismanagement without transitional funding, without support for restructuring, and without the financial breathing room now afforded to Surrey.

The Department for Housing, Communities and Local Government at the time cited “moral hazard” as the reason for denying debt forgiveness, arguing that it might encourage reckless borrowing. But how does that square with the situation in Woking, where a district council with a net budget of £24 million was permitted to borrow £1.8 billion? If moral hazard was a concern in 2018, why is it not a concern now?

The impact of this disparity is not theoretical, it is felt daily by our residents. West Northamptonshire continues to carry the weight of legacy debt, including high repayments on Public Works Loan Board borrowing that were not offset by the sale and leaseback of our new offices at One Angel Square. This financial burden falls disproportionately on communities that were previously debt-free, such as Wellingborough, East Northants, Daventry, and South Northamptonshire.

Moreover, the inequity is compounded by longstanding issues in per capita funding. A Band D property in Kensington and Chelsea pays £1,569.46 in council tax. In West Northamptonshire, the same household pays £2,262.59. In North Northamptonshire, it’s £2,147.10. These figures are indefensible and undermine public confidence in the fairness of the system.

In light of these concerns, I joined with Cllr Martin Griffiths, Leader of North Northamptonshire Council, and Cllr Ian McCord, former Leader of the West Northamptonshire Shadow Authority, in submitting a joint letter to the Secretary of State for Housing, Communities and Local Government. The letter calls for parity in debt relief, equitable transitional funding, and a fair funding review that reflects the real needs of our communities, not abstract averages or historical anomalies.

We are calling on the Government to:

• Extend equivalent debt forgiveness to West and North Northamptonshire as offered to Surrey
• Ensure future Fair Funding and Pride of Place allocations are equitable and responsive to local need
• Ensure Fair Funding considers the true cost of providing services including the rurality of areas
• Provide clarity on how these disparities will be addressed to support councils in delivering essential services.

Levelling up must not be a slogan, it must be a principle. And that principle must be applied consistently. Our residents deserve the same consideration and support as those in other parts of the country. We stand ready to work constructively with the Government to achieve a just and sustainable outcome for Northamptonshire.