Local Authorities: Fair Funding Review

Baroness Thornhill Excerpts

Thursday 14th March 2019 Lords Chamber

Asked by

[Baroness Thornhill]

To ask Her Majesty’s Government what progress they have made towards the completion of the fair funding review to set new baseline funding allocations for local authorities on the basis of relative needs and resources.

[Baroness Thornhill (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, we are making good progress on the development of a fair funding formula that aims to provide a simple and transparent link between local authority relative needs and resources and available funding.

[Baroness Thornhill]

I thank the Minister for that Answer, but the sooner the better, please. As this is the biggest change to local government funding in a generation, does the Minister agree that factors such as levels of deprivation are highly significant drivers of spending need in a local council’s budget? Will the Minister explain why deprivation is given no prominence in the new funding formula and how areas of greatest need, with the highest levels of deprivation, will be funded in future?

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is right about the importance of deprivation but she is wrong to say that we have not yet issued the policy. It was out for consultation until 21 February, as she will know, and we are now considering the responses. Even in that consultation we recognise the importance of deprivation in relation to, for example, adult social services, children’s social services, fire and rescue services, and public health. The noble Baroness makes a powerful point but it is recognised and the policy is still being considered.