SIGOMA Chair: Failure to deliver on reforms would lead to more bankruptcies and further social dissatisfaction

Posted on September 17, 2025

In an article in The Independent, our Chair, Councillor Sir Stephen Houghton, explains why the planned local government finance reforms are imperative to prevent more councils from issuing Section 114 notices, and to reverse growing public disillusionment. 

'Sir Stephen said the recent resignation of Angela Rayner as communities secretary over her tax affairs and the departure of local government ministers has caused concern among Sigoma councils...

Former Lambeth Council leader Steve Reed has succeeded Ms Rayner as Communities Secretary and Sir Stephen said his background may work against councils in poorer areas outside London.

He added: “Clearly London comes out of the (current) proposals in some difficulty, and we know they have been lobbying hard.

“You have got a minister who originates from London, so there is that concern there that is going to change things now.”

Mr Reed has sought to reassure local government leaders that he would continue in the same direction as his predecessor, but Sir Stephen said the “devil is in the detail”.

He added that the consequences of a failure to deliver on promised reforms would not only lead to more councils declaring essential bankruptcy, but cause further “social dissatisfaction” as residents feel “no one is listening to them”... particularly post-industrial places where people are already saying the Government does not care,” Sir Stephen said.' 

You can read the full article here.