Local Authorities: Financial Difficulties

Debate between Baroness Stuart of Edgbaston and Baroness Scott of Bybrook

Wednesday 14th February 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I agree with much of what my noble friend said. In December 2022, the Government ruled out reform of the local government finance system in this Parliament in response to the sector calling for stability and certainty from local government. However, this Government are committed to reforming the local government funding landscape in the next Parliament.

[Baroness Stuart of Edgbaston (CB)]

My Lords, I stress the need to review the local government financial settlements and support systems. In the case of a city such as Birmingham, even if increasing the council tax were realistic, a quarter of households—some 461,000 —are eligible for council tax support, and of those, 75,000 pay no council tax at all. Over the next two years, the city is facing a budget gap of some £300 million. Does the Minister agree that the structure needs to be reviewed and that individual circumstances have to be taken into account?

[Baroness Scott of Bybrook (Con)]

I repeat that we have said that we will look at funding in the next Parliament. There is an 18% increase in budgets per dwelling in the most deprived areas, compared to the least deprived. Through the settlement, places such as Birmingham are getting a lot more money.

Levelling-up and Regeneration Bill

Debate between Baroness Stuart of Edgbaston and Baroness Scott of Bybrook

Committee stage
Wednesday 22nd March 2023 Lords Chamber

[Baroness Scott of Bybrook (Con)]

If the noble Lord can wait one minute, I shall say what the Government are prepared to do.

For all these reasons, I ask the noble Baroness to withdraw her amendment—but the Government have been talking to senior officials of the trust to understand the issues that they face as a result of the electoral changes order. We have discussed various options that they can pursue, which include the Charity Commission making a scheme under Section 73 of the Charities Act 2011 and for the trust itself to pursue a private Bill to make the amendments that it thinks necessary. We are also exploring whether the Secretary of State has the vires to make an order in consequence of an electoral changes order, to amend or modify primary legislation, such as the Malvern Hills Act 1924. So we are working with the group. In realisation of that, I hope that the noble Baroness will withdraw her amendment.

[Baroness Stuart of Edgbaston (CB)]

My Lords, I am grateful to the Minister for her response and grateful that the department is pursuing ways of resolving the problem. In the light of that, I am content to withdraw the amendment.