Baroness Laing of Elderslie
Main Page: Baroness Laing of Elderslie (Conservative - Life peer)Local Government Finance (England)
Baroness Laing of Elderslie Excerpts(8 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Madam Deputy Speaker (Mrs Eleanor Laing)
We come now to the three motions on local government finance in England, which will be debated together. I remind the House that these motions will be subject to double majority voting. If Divisions are called on these motions, all Members of the House are able to vote in the Divisions. The motions will be agreed only if, of those voting, a majority of all Members and a majority of Members representing constituencies in England vote in support of the motions. At the end, the Tellers will report the results, first, for all Members and, secondly, for those representing constituencies in England.
The Secretary of State for Communities and Local Government (Greg Clark)
I beg to move,
That the Report on Local Government Finance (England) 2016–17 (HC 789), which was laid before this House on 8 February, be approved.
Madam Deputy Speaker
With this we shall discuss the following motions:
That the Report on the Referendums Relating to Council Tax Increases (Principles) (England) 2016–17 (HC 790), which was laid before this House on 8 February, be approved.
That the Report on Referendums Relating to Council Tax Increases (Alternative Notional Amounts) (England) 2016–17 (HC 791), which was laid before this House on 8 February, be approved.
Greg Clark
I am pleased to open the debate on this year’s report on local government finance in England. I would like to start by thanking all colleagues in the House, and council leaders and officials, who contributed to the consultation after I made a provisional statement shortly before Christmas. Nearly 280 groups or individuals contributed to the consultation. All responses have been carefully considered, and sensible suggestions have been incorporated into the final settlement that is before the House today.
I have always been frank with local councils that they will need to continue to make savings. Local government accounts for nearly one quarter of public spending, so it is inevitable and appropriate that councils should play their part in helping to reduce the national deficit. Council tax payers are also national tax payers; they are the same people—our constituents—and everyone suffers if we run a permanent, untamed deficit.
Councils have accepted their part in this responsibility. During the last Parliament, all parts of local government delivered the savings that have helped to reduce the deficit by half. At the same time, satisfaction with the services provided by local councils has been maintained—a remarkable reflection on the professionalism and the resourcefulness of local government.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the Secretary of State gives way—he has been perfectly polite and courteous in giving way a great many times—let me point out that this is a short debate. Twenty-four people have indicated to me that they would like to make speeches, and they intend to sit here all afternoon awaiting their turn to do so. Many people are making interventions, which the Secretary of State is dealing with most courteously. They are taking part in the debate, and they must be aware that they are taking up the time of other people who will be waiting to speak later on. If you make an intervention in this debate, you must remain for most of the debate and certainly be here for the wind-ups.
Greg Clark
Thank you very much, Madam Deputy Speaker. Given those numbers, I will be brief in taking interventions, but I will take the point from the hon. Member for Liverpool, Riverside.
Several hon. Members rose—
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the Opposition Front-Bench speaker, it will be obvious to the House that a great many people wish to speak and we have a limited amount of time. I therefore impose a five-minute time limit on Back-Bench speeches, although not for Mr Steve Reed.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The hon. Member for Croydon North (Mr Reed) has to answer, and then he can give way to the Secretary of State.
Mr Reed
I have given way to the Secretary of State twice, and now I am going to continue.
I turn now to council tax. On Monday, the Secretary of State denied he had written to councils, telling them to put up council tax. Indeed, it was not the Secretary of State who wrote that; it was the Under-Secretary of State for Communities and Local Government, the hon. Member for Nuneaton (Mr Jones). [Interruption.]
Madam Deputy Speaker
Order. The House is making far too much noise. Both the hon. Gentleman and the Secretary of State have important things to say. Let them fight it out. Do not make so much noise.
Mr Reed
Barracking will not stop me saying what needs to be said.
I have a copy of the letter the Minister sent to councils with the provisional settlement. The spreadsheets it links to, which were sent to every town hall, include figures setting out the Government’s expectation that councils will put up council tax by 1.75% every year for four years and, on top of that, impose a further 2% rise to help plug the gap arising from the Government’s failure to fund social care properly. That is 3.75% a year more every year for four years. By 2020, it adds up to a council tax hike of well over 20%. That will cost the average band E council tax payer about £300 more a year. It is very hard indeed to square that massive Tory tax hike with the Tory manifesto pledge to keep council tax as low as possible. The Tories are breaking their promises—they are hiking council tax up.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before the hon. Gentleman responds to that intervention, I have to tell the hon. Member for Worsley and Eccles South (Barbara Keeley) that it was far too long. We have hardly any time, and if hon. Members make long interventions they are preventing their colleagues from speaking.