Local Government Finance

Lord Spellar Excerpts

Thursday 17th December 2015 Commons Chamber

[Greg Clark]

I agree with my hon. Friend and, as I have said throughout the statement, prioritising social care means savings do need to be made in other parts of councils’ operations. An excellent way to do that is to combine councils’ administrative services that cross borders.

[Mr John Spellar (Warley) (Lab)]

May I put it to the Secretary of State, the Member for Tunbridge Wells, that while the Government talk about the revival of our great cities of the north and midlands, this statement follows the long-standing policy of discrimination against the metropolitan boroughs, with disproportionate cuts not only to local council budgets, but to police and fire services as well? Will he now answer the question posed by the Opposition spokesman as to how he will deal with the dramatically different income levels from the business rate to boroughs, especially those in central London compared with the rest?

[Greg Clark]

I would have thought the right hon. Gentleman would have taken the opportunity of being here today to applaud the success of the west midlands. It has agreed a devolution deal that will bring £1 billion of extra resources into his area. On the 100% business rate retention, of course that needs to recognise that some places will need to contribute to others. That is well understood and during the months ahead we will be working with local government to find the best way to address that requirement. That is not part of this settlement because that comes in from 2019-20.