Local Government Finance

Debate between Christopher Chope and Sajid Javid

Wednesday 7th February 2018 Commons Chamber

[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.

Local Government Finance Settlement

Debate between Christopher Chope and Sajid Javid

Tuesday 19th December 2017 Commons Chamber

[Sajid Javid]

I gently say to the hon. Lady that I did talk about social care and children’s social care in my statement, and I certainly highlighted the additional funding that is being provided over the short term, including the £2 billion in the spring Budget. She mentions Liverpool. Based on what I have shared today, and if Parliament votes through the draft settlement, there will be an £8.7 million increase in her local authority’s core spending power, which it can decide to use as it wishes.

[Mr Christopher Chope (Christchurch) (Con)]

My right hon. Friend will know that, last Thursday, there was a local referendum in Christchurch in which more than 17,600 people voted against the abolition of Christchurch Borough Council. He has given the council only until 8 January to make an alternative submission. In the light of the financial implications of his announcement today, will he extend the period so that the implications of these important changes, which particularly affect rural Dorset, can be taken into account in making that alternative proposal?

[Sajid Javid]

We are not looking to extend that period. However, we will listen carefully to what Christchurch Borough Council has to say following the referendum. As I have said right from the start, at this point it is a “minded to” decision. There is no final decision, and it is important that we listen carefully to everyone, including of course Christchurch Borough Council.

Local Housing Need

Debate between Christopher Chope and Sajid Javid

Thursday 14th September 2017 Commons Chamber

[Sajid Javid]

The hon. Gentleman might like to reflect on what I said earlier. When his party was last in power, social units declined by 420,000; I do not think many Members can remember him saying similar things then. If he really means what he says this time, he should agree with what he has heard today and what he has read in the housing White Paper published in February—I hope he has read it. We very much agree that there needs to be diversified supply in the market. It is not just about the private sector, although it has a hugely important role to play; we need more small and medium-sized builders in the market. We need to help housing associations, which currently account for almost a third of housing starts, to do even more. Where ambitious councils want to build more homes, we are ready to work with them.

[Mr Christopher Chope (Christchurch) (Con)]

The written statement says that there will be places, such as areas of outstanding natural beauty or green belt, where constraints mean that there is not enough space to meet local need. As the Opposition spokesman pointed out, my right hon. Friend omitted a reference to green belt in the written statement; was that a slip of the tongue or intentional? He instead inserted the phrase “national parks”. If it was a slip of the tongue, will he issue a ministerial correction?

[Sajid Javid]

I can assure my hon. Friend that we have been absolutely clear, and I am happy to be clear again: green belt rightly has a significant amount of protection in planning policy. What we have said today, and what we have put in the White Paper, changes absolutely none of that. We are committed to maintaining those protections; existing protections will in no way change. As I made clear in the statement and in my response to the right hon. Member for Wentworth and Dearne (John Healey), when the new housing assessment is done, one constraint for local authorities could well be green belt. For others, it could be national parks or areas of outstanding natural beauty. It could be a combination of them. Some might apply to a single local authority. One of our building priorities has always been to prioritise brownfield land, and that does not change.