19:28 - The House having divided: - Ayes: 287 / Noes: 223 - Question accordingly agreed to.
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
I beg to move,
That the Report on Local Government Finance (England) 2018–19 (HC 791), which was laid before this House on 5 February, be approved.
Madam Deputy Speaker
With this we shall consider the following motions:
That the Report on Referendums Relating to Council Tax Increases (Principles) (England) 2018–19 (HC 792), which was laid before this House on 5 February, be approved.
That the Report on Referendums Relating to Council Tax Increases (Alternative Notional Amounts) (England) 2018–19 (HC 790), which was laid before this House on 5 February, be approved.
Sajid Javid
Every day, local government delivers vital services for the communities they serve—services that many of us take for granted, provided by dedicated, often unsung councillors and officers in places that we are all proud to call home. As such, as I have said before, local government is the frontline of our democracy and deserves the resources it needs to do its job and to deliver truly world-class services. To that end, late last year we published a provisional settlement for funding of local authorities in England. We invited people to give their views on this via a formal consultation to which we have received almost 160 responses.
My Ministers and I have engaged extensively with the sector, with individual councils, with Members of Parliament, and with the Local Government Association and other representative groups, ensuring that we were available to speak to anyone who wanted to raise particular issues or to ask any questions. I pay tribute to my hon. Friend the Member for Nuneaton (Mr Jones) for his sterling work in this area, not just over this period but for the past three years. I thank the Under-Secretary of State, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), who recently joined the Department, for picking up the baton.
I am immensely grateful to everyone who has contributed to this consultation and our wider engagements with the sector.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
After all the consultations and discussions that the Secretary of State has held, is he in a position to revise his view that Liverpool City Council should lose 68% of its budget and have to face a crisis in children’s social care as well as in adult social care?
Sajid Javid
The hon. Lady should be assured that Liverpool City Council, like almost every other council, is seeing an increase in its spending power from last year going into this year. She points out the challenges that the council has had in trying to bring about efficiencies. That, as I will come on to explain, has been a theme for many councils, but she should be assured that over the next two years there is a real increase in the core spending power of all councils, taken together.
Mr Jim Cunningham (Coventry South) (Lab)
Set against Coventry City Council’s needs, the so-called increase that the Secretary of State is talking about is delusional and derisory, to say the least. It does not meet the council’s needs.
Sajid Javid
Perhaps the hon. Gentleman can draw some comfort from my words in due course.
This work, with the feedback that we have received over the past few weeks, has informed the final settlement that we are unveiling today. It is part of a four-year settlement that gives English councils access to over £200 billion in funding in the five years to 2020. It gives them greater freedom and flexibility over the money that they raise, in recognition of the fact that no one knows their local areas, and the opportunities, challenges and pressures that they face, better than the councils who serve them. It strikes a balance between relieving growing pressure on local government while ensuring that hard-pressed taxpayers do not face ever-increasing bills.
Dr David Drew (Stroud) (Lab/Co-op)
Could the Secretary of State explain why Stroud District Council is the only council in Gloucestershire that has no revenue support grant promised under these proposals? Worse than that, the other three district councils in Gloucestershire get some money under the rural services delivery grant, yet Stroud gets nothing. Why does he think that is fair, and how can he defend it?
Sajid Javid
The hon. Gentleman, like many colleagues in the Chamber, is served both by district councils and county councils, all providing services for his constituents. The whole picture should be taken together. He will know that his county is seeing, for example, an increase of some £10.8 million to provide some very important services. Also importantly for Gloucestershire, including the district councils as much as the county council, the Gloucester business rates pool is part of the 100% pilot, which it estimates will lead to further additional funding this year of about £10 million. I hope that that helps to reassure him.
The settlement comes in the third year of a four-year deal that was accepted by 97% of councils in return for publishing efficiency plans. This gives the certainty and stability that they need to plan for the future. Many local authorities have done impressive work to deliver better value for money and are setting an example for other parts of the public sector. We are keen to continue to work with the sector to increase transparency and to share best practice so that councils can deliver increased efficiency over the coming years and transform services.
In all, the settlement answers calls from councils over many years for greater control over the money that they raise and the tools to make this money go further. This is the approach that we have taken across the board, listening to local authorities and responding to what we hear.
Mr Kevan Jones (North Durham) (Lab)
The Secretary of State talks about core funding. I think the average for county councils—[Interruption.] Mine is Durham, by the way, for the Parliamentary Private Secretary who is looking it up. [Laughter.] The average is a 2.1% increase, but for Durham it is only 1.4%. The reason for that—[Interruption.] Durham County Council—the PPS has got the wrong one! [Laughter.] The reason is the low council tax base, as 55% of properties in County Durham are in band A, which affects the council’s funds—County Durham, if the PPS has still not got it.
Sajid Javid
The hon. Gentleman is obviously familiar with the numbers for his own council, which is good to see, and his council is getting an increase. As I have said, and this will be a theme throughout the settlement, we have to always make sure that we are striking the right balance between providing increased resources and keeping any burden on taxpayers to an absolute minimum. I hope that the hon. Gentleman would support that.
We are creating a whole system of local government that is fit for the future. The current formula for financial allocations has served local areas well over the years.
Kevin Hollinrake (Thirsk and Malton) (Con)
North Yorkshire is doing its best to make ends meet despite a difficult and tight spending round. Can it be right that spending power in North Yorkshire is £770 a head, when in many other areas, especially in London, it is around £1,100 a head per year? Does my right hon. Friend agree that we need a fairer funding review that delivers fairness for North Yorkshire and other rural areas?
Sajid Javid
I very much agree with the point that my hon. Friend makes about looking at the fairness of the distribution, and I know that he has spoken powerfully about that in the past. We are looking at it, and I will come to it shortly in my speech.
A world of constant change, involving big shifts in demographics, lifestyles and technology, demands an updated and more responsive way of distributing funding. That means that we have to question the fairness of the current system, which is why I was pleased to launch a formal consultation on a review of councils’ relative needs and resources in December. This is not just a paper exercise. We have an unparalleled opportunity to be really bold and ambitious, and to consider with the sector where the most up-to-date evidence and data lead on drivers of local authority costs and to create a whole new system that gives councils the confidence to face the opportunities and challenges of the future.
John Redwood (Wokingham) (Con)
That is an excellent idea. Can the Secretary of State reassure the unitaries in my part of Berkshire that he does not envisage them going into negative grant, as it is called—in other words, getting no help at all?
Sajid Javid
I can give my right hon. Friend some reassurance on that matter. I will come to it in more detail in a moment, and I hope that he will be genuinely reassured.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
When the fairer funding formula comes into being, I hope that my right hon. Friend the Secretary of State will work with other Ministers to really understand the huge gulf that is starting to appear between city metropolitan areas and rural shire counties. We are becoming second-class citizens in rural areas because of the lack of funding in comparison to socialist metropolitan areas.
Sajid Javid
My hon. Friend makes a very important point about ensuring full co-operation throughout all Government Departments working jointly with our local authorities on fairness and distribution. One way we have tried to make the settlement fair is by recognising the special factors that affect rural areas, including Shropshire. My hon. Friend’s council in Shropshire will benefit from £6.6 million in rural services delivery grant.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The Conservative portfolio holder for finance on Stoke-on-Trent City Council says that it will lose £15 million of central Government grant over the next two years—that is Stoke-on-Trent with hyphens for the Secretary of State’s PPS, as he diligently searches his folder—but the Secretary of State will tell me that our revenue spending will be going up. Who is not telling me the truth? It cannot be the case that spending is going up when the portfolio holder tells me that the grant is being cut.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the Secretary of State answers, I must say that interventions have to be short. A lot of people want to speak. What is unfair is if people make interventions and then leave, and other people have to sit for three hours waiting to speak. That is just not honourable. I appreciate that the hon. Gentleman is going to be here, but I just make the point about short interventions.
Sajid Javid
I can tell the hon. Gentleman that the core spending power for Stoke-on-Trent—with hyphens—is increasing by £3.5 million in the settlement. Indeed, the core spending power per dwelling for Stoke-on-Trent is higher than the average for the class. I hope he welcomes that.
The consultation on fairer funding closes on 12 March and I urge all those with a stake in the system to make their voices heard. We aim to introduce this new approach from 2020-21.
Mr Philip Dunne (Ludlow) (Con)
I applaud my right hon. Friend for launching the consultation on fairer funding. Will he be able to reassure the House that, in contrast to some of his predecessors who have said nice words about fairer funding but have not reflected the significant changes that were introduced under the previous Labour Administration, the consultation will inform the next spending review so we will actually to see it put into practice?
Sajid Javid
I can give my hon. Friend that reassurance and I take this opportunity to thank him for the strong representations he has made on behalf of Shropshire, which have fed into the settlement.
The business rates retention programme will also be introduced in 2020-21. It will give local authorities powerful incentives to grow their local economies. So far, this has been a resounding success. Under the current scheme, local authorities estimate that they will receive about £1.3 billion in business rates growth in 2017-18, a significant revenue stream on top of the core settlement funding that is set to continue into 2018-19.
James Duddridge (Rochford and Southend East) (Con)
I welcome the 10 county-wide pilots. Will the Secretary of State consider extending the pilots to include small unitaries such as Southend and Thurrock or areas of the county such as south Essex, if the whole Essex plan does not work?
Sajid Javid
There will be further pilots and I will come on to that in just a moment.
It is right that we will be going further. It is our aim for local authorities to retain 75% of business rates from 2020-21. This will be achieved by incorporating existing grants into business rates retention, including the revenue support grant and the public health grant. Local authorities will be able to retain 75% of the growth in their business rates from the new base lines in 2020-21, when the system is re-set.
The long-term plan is to allow local government to keep 100% of its business rates. With that in mind, I announced an expansion of the 100% retention pilots that proved so popular in December. As a result, we will be taking forward 10 new pilots covering 89 authorities, instead of the five we originally planned. A further pilot will begin in London in 2018-19, and existing devolution pilots will continue in 2018-19.
Mike Hill (Hartlepool) (Lab)
My local authority in Hartlepool finds it increasingly difficult to establish a business rates base but will participate in the programme. However, its departments face 40% cuts, and it has a £6 million shortfall. How fair is that?
Sajid Javid
For the hon. Gentleman’s local council in Hartlepool, there will be an increase in the core spending power of 1.9%, which is £1.5 million. He talks about fairness. It is worth pointing out that the core spending power per dwelling in his local authority is £1,931, which is significantly higher than the average for the class. I hope that that reassures him that his local authority is getting a significant amount of spending power, particularly from a per-dwelling point of view.
Wera Hobhouse (Bath) (LD)
I understand the thinking, which is that councils that say they are doing well in terms of business should be rewarded and retain their business rates. However, how will councils in deprived areas be compensated for the fact that they cannot do so well in terms of business? I was a councillor in a deprived local area—it happens to be the Secretary of State’s birthplace—and we tried for many years to encourage more business and enterprise, but it was incredibly difficult.
Sajid Javid
The hon. Lady’s local authority, Bath and North East Somerset, was part of a business rates pilot in 2017-18. As I said, we have extended that pilot, which gives the local authority the ability to take advantage of that and put in place incentives for local businesses to see growth. The council estimates that it can see millions of pounds of extra income from that, which I would have thought she would support for her local community.
The business rates pilots will help to test the system, to see how well it works in different areas and different circumstances. The purpose of the pilots was to have a broad distribution across north and south, urban and rural, and small and large. The pilot areas will keep 100% of the growth in their business rates if they expand their local economies, which is double what they can keep now. I can confirm that I will open a further bidding round for pilots in 2019-20 in due course. In expanding those pilots, we have responded to what councils have told us, and we are doing the same in other areas.
Rural councils express concern about the fairness of the current system, with the rural services delivery grant due to be reduced next year. In response, I can confirm today that we will increase that grant by £31 million in 2018-19. That is £16 million more than was proposed in the provisional settlement, taking the total figure to £81 million—the highest amount ever paid in rural grant, at a little over the sum paid in 2016-17.
We recognise that the so-called negative revenue support grant is causing concern. Changes in revenue support grant have led to a downward adjustment of some local authorities’ business rates top-up or tariff for 2019-20. We know we must address that problem, and we will consult formally on a fair and affordable set of options for doing so, with plenty of time to reflect on the findings before next year’s settlement.
Following discussions with the sector, we are continuing with the capital receipts flexibility programme for a further three years. That scheme gives local authorities continued freedom to use capital receipts from the sale of their own assets, to help fund the transformation of services and to release savings.
Sir Christopher Chope (Christchurch) (Con)
May I ask the Secretary of State about the negative revenue support grant? He has not actually said expressly that there will no longer be a negative revenue support grant. My local councils are saying that the Government cannot be trusted on this, and unless and until the Government commit themselves to saying there will not be a negative revenue support grant, they will have to budget on the basis that there may be one.
Sajid Javid
My hon. Friend makes a very good point. Such certainty is of course very important for many local authorities, including his own, and I hope I can now make the situation clearer. It is our intention to deal with the problem of the negative RSG, but we have yet to determine exactly the best way of doing so and providing support to the local authorities affected, and that is why it is right to consult on it. I absolutely commit to him that we will do so, and when we do—our plan is to do it in the spring—I hope that he and others will make an input to make sure that we get it right and really deal with this problem for his authority and many others.
Mr Clive Betts (Sheffield South East) (Lab)
Will the Secretary of State reflect on the issue of the transitional grant? It may be important to some authorities, but will he confirm the figures Sheffield City Council has given me showing that the authorities that have had the biggest cuts to their core spending—cuts of over 30%—have between them benefited in this financial year to the tune of £10,000? That is the total figure for the authorities that have had the biggest cuts in grant over the past few years.
Sajid Javid
My remarks a moment ago were about not the transitional grant but the problem of the negative RSG. I will come on to other grants in a moment.
We have responded to concerns about proposed changes to the new homes bonus. By the end of 2018-19, we will have paid out £7 billion under the scheme to reward the building of some 1.4 million homes, including £947.5 million for the year 2018-19. When we consulted last year on proposals to link NHB payments to the number of successful planning appeals, it was clear that the sector wanted continuity and certainty. That is what we have delivered, with no new changes to the NHB this year and the baseline being maintained at 0.4%. Furthermore, as we set out in our housing White Paper, we are enabling local authorities to increase planning fees by 20% where they commit to investing the extra income in their planning services. That should provide a welcome boost to local planning authorities and address concerns about under-resourcing.
The final settlement includes small adjustments to top-ups and tariffs for authorities based on corrected Valuation Office Agency data. I know that my opposite number—that is, the opposite number I have today, the hon. Member for Denton and Reddish (Andrew Gwynne)—has been trying to make some mischief on this point, so let me spell it out very clearly for him. [Interruption.] Well, he raised a point of order on this issue yesterday. I think it is worth spelling it out clearly, because perhaps he has not understood what we have said.
The provisional settlement was based on the VOA’s official statistics, the best published data available at the time. Just ahead of the provisional settlement, officials were notified of an error in the VOA data. Ministers were not told about this until 16 January, as officials did not know what, if any, changes might have to be made to the tariffs and top-ups for individual authorities. The hon. Gentleman will know that the moment corrected statistics were published by the VOA, revised figures were provided to local authorities to enable them to finalise their budgets. He should also know that part of the reason for the publication of a provisional settlement—the clue is in the name—is to test the numbers and to make adjustments. I respectfully suggest to the hon. Gentleman that he spend more time dealing with the substance of today’s settlement and a little less on childish antics.
Andrew Gwynne (Denton and Reddish) (Lab)
I am grateful to the Secretary of State for clarifying the position. Of course, the point is this: who runs the Department? The Secretary of State has some responsibility. If his departmental officials knew that the data were incorrect, was it not incumbent on him, as Secretary of State, to have known that and made it clear to the House when he presented the provisional settlement that the data were likely to be changed? The fact is that he came to the House on 19 December and gave incorrect information when answering right hon. and hon. Members’ questions. It is shameful.
Sajid Javid
As usual, the hon. Gentleman stands at the Dispatch Box and raises his voice, acting like a child again. He has nothing whatsoever to say on the substance of the issue.
Councils have a crucial role to play in helping to deliver the homes that our country desperately needs. However, we all know that we cannot achieve that without having the right infrastructure in place: the schools, GP surgeries, transport links and other essentials. The private sector can go only some way in delivering that infrastructure. It is clear that we must raise our game to match our ambitions, which is why last July we set up the housing infrastructure fund to support local authorities to provide infrastructure and build more homes. In the end, we received a staggering 430 bids, worth almost £14 billion, to deliver 1.5 million homes, demonstrating the incredible ambition that is out there to tackle the housing crisis—an ambition that we are keen to get behind and back fully. Hence our move to more than double the housing infrastructure fund in the autumn Budget, dedicating an additional £2.7 billion to it, bringing the total funding to £5 billion.
Last week I was delighted to announce the first funding allocation: £866 million for 133 successful projects, involving 110 councils, that will help unlock up to 200,000 homes. Those projects promise to deliver a strong pipeline of homes at pace and scale, and represent another important step towards meeting one of the defining challenges of our time.
I will now turn to another major challenge: social care. I am under no illusions about the pressures that councils face in addressing one of the biggest challenges we face as a country, which is why we have put billions of pounds of extra funding into the sector over the past 12 months. I can today announce a further £150 million for an adult social care support grant in 2018-19. This will be allocated according to relative needs and will help councils to build on their work and support sustainable local care. It comes on top of the additional £2 billion for adult social care over the next three years announced at the spring Budget. With the freedom to raise more money more quickly through the use of the social care precept, which I announced this time last year, we have given councils access to £9.4 billion more dedicated funding for adult social care over three years.
Diana Johnson (Kingston upon Hull North) (Lab)
The problem with putting up council tax in order to pay for social care is that some of the most disadvantaged areas have a very low council tax base. In Hull, for example, what we can raise through that increase in the precept is very small compared with the needs we have. Are we not moving back to the days when the poor were keeping the poorest, about which George Lansbury protested in Poplar nearly 100 years ago, by putting the onus back on local authorities in very disadvantaged areas?
Sajid Javid
The hon. Lady suggests that the only way councils can access funds to provide social care is through council tax, which is absolutely not the case, as she knows. It is an important way to raise some of the funding, but an increasing amount is coming from central resources. For example, the £2 billion that was allocated in the spring Budget takes into account the ability of local authorities, including the hon. Lady’s, to raise money locally. It is right that we have that balanced approach, but I know that there is more to do on adult social care, and that funding alone will not help to fix the challenges. This long-term challenge requires a long-term systemic change. The publication of a Green Paper this summer on future challenges in adult social care will help set us on a path to secure that.
Finally, we are responding to calls for more flexibility over setting council tax. Local authorities will be able to increase their core council tax requirement by an additional 1% without a local referendum, bringing the core principle in line with inflation. This will enable them to raise revenue and meet growing demand for their services while keeping taxes low. Having done away with Whitehall capping, we have enshrined these checks and balances into the system. Under the Localism Act 2011, local government can increase council tax as it wishes, but excessive rises need to be approved by local residents in a referendum.
In addition, directly elected Mayors will decide the required level of precept by agreement with their combined authorities, and it will be easier for police and crime commissioners to meet local demand pressure under measures that I have agreed with the Home Secretary. They will allow for a £12 council tax flexibility for police services, raising an additional £130 million next year. We will, however, defer the setting of referendum principles for town and parish councils for three years, and we will keep that under review. In all, I want to see the sector doing everything possible to limit council tax increases and show restraint. I am keen to ensure that these freedoms are not abused, and I am sure voters are too.
My Department’s name recently changed to the Ministry of Housing, Communities and Local Government. That underlines our focus on fixing our broken housing market and getting Britain building, but I remain absolutely committed to the community and local government elements of our work. They are the foundations on which everything else stands. It is not enough to build more homes; we need to build better and stronger communities. Councils acting truly as local government and not local administration will help us to achieve that.
Tom Pursglove (Corby) (Con)
On the point about local government, will the Secretary of State confirm that this settlement will see real-terms increases for local government over the two-year period?
Sajid Javid
I can confirm that there will be a real-terms increase in resources for local government over a two-year period, rising from £44.3 billion in 2017-18 to £45.6 billion in 2019-20. I should clarify, however, that due to the additional £166 million that was announced this year, that is a real-terms increase over the two-year period rather than year on year.
We have listened to local authorities, and through this settlement we have delivered what they asked for, while at the same time keeping spending in check. We have delivered a real-terms increase in resources over the next two years, more freedoms and fairness, and greater stability and certainty for local authorities to plan and drive value for money. They, and the communities they serve, deserve no less. I commend the settlement to the House.
Madam Deputy Speaker (Mrs Eleanor Laing)
Before I call the Opposition spokesman, I warn hon. Members that, as is obvious, a great many people wish to speak this afternoon and there is limited time, so there will be an immediate time limit on Back-Bench speeches of seven minutes. Of course, that does not apply to Mr Jim McMahon.
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
It is a pleasure to close this debate. I thank hon. Members on both sides of the House for their valuable contributions. I pay particular tribute to all Members who are either former or serving members of local authorities and have brought that expertise to bear today. I pay a special tribute to my predecessor, my hon. Friend the Member for Nuneaton (Mr Jones), who has left impressively large shoes for me to fill.
Local government and the hard-working, dedicated people who work in it deliver vital services every day at the heart of the communities they serve. I am deeply honoured to represent them in government—to listen to them, learn from them, and work with them to build communities that people are proud to live in. I am therefore delighted that this settlement delivers on our promise to local government. It confirms the third year of an unprecedented four-year deal accepted by 97% of councils, providing long-term certainty to local government. It is a deal that delivers more than £200 billion over a five-year period, allowing councils to be bold and ambitious in planning for the future.
But there is no room for complacency. This Government are under no illusions about the pressure on local services, so today’s settlement seeks to ease that pressure while shielding taxpayers from unaffordable bills. We have gone above and beyond the four-year deal to listen and respond to what the sector wants.
Imran Hussain
On a point of order, Mr Deputy Speaker. I apologise to the Minister, but I have been advised that I must raise this point of order immediately. When I took part in the debate earlier, I should have put on the record and referred Members to my registered interest as a serving local councillor.
Rishi Sunak
Thank you, Madam Deputy Speaker. [Laughter.] I am sorry—Mr Deputy Speaker.
Rishi Sunak
We have gone above and beyond the four-year deal in listening and responding to what the sector wants. That is why last year we allowed increased flexibility in the use of the adult social care precept, and why this year we have proposed additional flexibility on the core council tax referendum principle.
On adult social care, of which we have heard much today, on top of the extra £2 billion announced at the spring Budget last year, we have now announced an additional £150 million extension to the adult social care support grant, and we have increased the rural services delivery grant to its highest-ever level.
We are also building on the highly popular business rates retention scheme. Local authorities estimate that in the year just finishing they will keep about £1.3 billion in business rates growth, and we expect this to be maintained going forward.
Steve Double (St Austell and Newquay) (Con)
The Minister knows that I have raised a number of times the issue of people avoiding paying both council tax and business rates on holiday homes by converting them to business use and enjoying small business rate relief. Councils in tourist areas are losing out from that. Will he commit to trying to close that loophole?
Rishi Sunak
I thank my hon. Friend for his intervention. He rightly points out that he raised this issue in Prime Minister’s Question Time earlier and has made representations to me about it. I am pleased to confirm that my officials and I are looking into the matter. He makes the point well. The existing system does leave some scope for ambiguity, and we will look into that.
The vital funding that comes from business rates retention—over £1 billion—is a direct result of local authorities driving economic growth in their areas, and it is on top of the core settlement funding that we have announced today. Over the long term, local government will be transformed, becoming increasingly self-sufficient with local resources funding local services. But to achieve that, we all know that the funding formula needs to become fairer, more transparent and more responsive to changing demands. Getting it right will of course be a challenge, but the prize if we can do that is a system that will be truly fit for the modern world and allow councils to face the future with confidence.
The business rates retention proposals that we mentioned earlier are a key step in this journey, and we hope to see local authorities retaining 75% of business rates from 2020-21. There is a great deal of enthusiasm across the country for this new model, and I can assure the House that I and my Department are committed to working with the sector to make this a success.
I turn briefly to some of the specific points that have been made. The hon. Member for Sheffield South East (Mr Betts) and my hon. Friend the Member for North Dorset (Simon Hoare) were right to pay tribute to local councillors who have, we acknowledge, made difficult decisions and have done an extraordinary job over the past few years. My hon. Friends the Members for Shrewsbury and Atcham (Daniel Kawczynski), for North Dorset, for Waveney (Peter Aldous), for Redditch (Rachel Maclean) and for Ludlow (Mr Dunne) talked about rural areas and the need for fair funding. I can assure them that we are committed to that. The fair funding review will specifically take a fresh look at how council tax should be taken into account when redistributing income, and relative costs of delivering services will also be considered.
My hon. Friends the Members for Corby (Tom Pursglove) and for Wellingborough (Mr Bone) rightly talked about the role of governance and leadership in local councils. They were followed by my hon. Friend the Member for Newton Abbot (Anne Marie Morris), who rightly said that it is not just about how much, but how it is spent. Unaccompanied asylum seekers and the costs that councils have to bear were raised by my hon. Friend the Member for Corby and the hon. Member for Dover (Charlie Elphicke). I am pleased to announce that the Government have allocated funding from a £29 million pot for exactly that. My hon. Friend the Member for Corby will be pleased to know that Northamptonshire will receive £231,000 from that grant, and the hon. Member for Dover will know that Kent will receive more than £1 million.
Opposition Members talked a lot about whether the funding was fair. They pointed to Knowsley, so they will be pleased to learn that it receives core spending power per dwelling 26% higher than the average. Indeed, across the country, the 10 most deprived local authorities receive core spending power per dwelling 23% higher than the least deprived. We heard a lot from the Opposition about money. Indeed, the hon. Member for Dover put it well: there is no question to which the answer is not more money. We all know where that money has to come from—our hard-working taxpayers. Under the last Labour Government council tax doubled, and that is what we would have to look forward to again.
This is a settlement that honours our commitment to local government—delivering certainty, recognising the challenges and making additional resources available, all while keeping excessive council tax rises in check. It gives councils the resources they need to provide the world-class services that their communities expect and deserve. I commend it to the House.
Question put.
The House proceeded to a Division.
Mr Deputy Speaker (Sir Lindsay Hoyle)
I remind the House that the motion is subject to double-majority voting: of the whole House and of Members representing constituencies in England.