Local Government Finance (England)

Debate between Lord Beamish and Hilary Benn

Wednesday 13th February 2013 Commons Chamber

[Hilary Benn]

My hon. Friend is right. That quote sums up wonderfully the philosophy the Government have brought to the cuts they are making.

[Mr Kevan Jones (North Durham) (Lab)]

What the Conservatives are doing does not surprise me; they are helping their own areas. Does my right hon. Friend recognise that in the recent announcement on support for rural councils, Durham county council was in but is now out for an unexplained reason?

[Hilary Benn]

We had a debate on Monday. Different areas have different needs and I acknowledge the particular challenges that local authorities serving rural areas face. The Government’s job is to balance all those things and come up with something that can be seen as fair.

--- Later in debate ---

[Mr Kevan Jones]

Does my right hon. Friend agree that, in communities such as mine, the changes will have a dramatic effect on the local economy? The one thing that those people do is spend their money in the local economy.

[Hilary Benn]

My hon. Friend is absolutely right. The measures will take potential spending power and demand out of the local economy at a time when we have a crisis of growth. They are economically illiterate, as well as profoundly unfair. It is little wonder that the former Conservative Cabinet Minister, Lord Jenkin, who knows a thing or two because he was the man who designed the original poll tax, has called the Secretary of State’s plan—yes, it is his plan—the “poll tax mark 2”.

The settlement needs to be seen for what it really is. Despite the Government’s attempts to hide the truth, it is unfair and unjust. It is unfair to local residents who rely on their local services, and it is unjust in the way it hits the poorest areas and the poorest people hardest. That is why we will vote against the local government finance report today.

Local Government Finance Bill

Debate between Lord Beamish and Hilary Benn

Tuesday 10th January 2012 Commons Chamber

[Hilary Benn]

Will the hon. Gentleman bear with me for a moment?

Under the Bill, the Secretary of State will determine the baseline for every local authority, including, in effect, what he thinks every council needs to spend. He will decide how much business rate income central Government will take and how much will be left with local authorities. He will be able to change the central share from year to year, and to specify the tariff or top-up payment for every local authority in England. He will also decide how much any council must pay him in levy in respect of disproportionate gains in business rate income—and he will decide what “disproportionate” means.

[Mr Kevan Jones]

Will my right hon. Friend give way?

[Hilary Benn]

Will my hon. Friend bear with me for a moment?

The Secretary of State will determine safety net payments, and decide how much of the remaining balance in the levy account may be distributed to one or more authorities. He will determine how much billing authorities must pay to major precepting bodies. He will designate pooling areas, and decide which groups of people must receive a council tax reduction. He will decide which classes of dwelling cannot be charged extra council tax, taking account of the characteristics and circumstances of any person liable—whatever that means. He will decide which areas are to be enterprise zones, and issue regulations to designate TIF areas. And in case all that is not enough, in clause 14(2) he gives himself a Henry VIII power that will allow him to amend, repeal or revoke any legislation he wants. That does not sound like localisation to me.

[Mr Kevan Jones]

I agree with my right hon. Friend about the centralisation of powers. The one power that is being given away to local authorities is the administration of council tax benefit, where local councils will have the invidious task of cutting council tax benefit to individuals. The Secretary of State is basically giving away the unpopular decisions, making sure that local people get the impression that local councils and not the Secretary of State are to blame for the cuts.

[Hilary Benn]

My hon. Friend is absolutely right, anticipating one or two points I intend to make later in my speech.