Local Government: Finance

Lord Bates Excerpts

Monday 13th December 2010 Lords Chamber

[Baroness Hanham]

My Lords, I have already indicated this Government’s strong support for the voluntary sector and their belief that the sector has a major role to play in the future. Indeed, the noble Baroness will see that in the Localism Bill, which has just been published, a big emphasis is placed on the need for local authorities to work with voluntary organisations and, indeed, for voluntary organisations and community associations to have a greater say in how things are run in conjunction with, or independently from, the local government sector. Therefore, there is no disagreement between us about that or about the value of the voluntary sector. The noble Baroness is right: there is a transitional fund of £100 million to help voluntary organisations. I think that the volunteer centres will fall into that, and that will help them to withstand some of the reductions in grant.

I was asked about the care of the elderly. The work that is done will be very carefully monitored; we had some discussion about this on Thursday. It has to be made clear that the quality of the care is extremely important. It is not currently brilliant across the country, and we are very aware that efforts need to be made to ensure that it is universally good.

[Lord Bates]

My Lords, does my noble friend agree that the party opposite had planned cuts of £52 billion to tackle the deficit? If they, as we have done, had ring-fenced the National Health Service and schools budgets, then it was always going to be a tough settlement, whoever was in power. Is it not also the case that this Government are reducing top-down bureaucracy through the comprehensive spending and performance reviews, freeing up councils from ring-fencing and giving them the potential to earn greater sums through business rates and the new homes bonus?

[Baroness Hanham]

My Lords, I thank my noble friend for that question and I agree entirely with what he has said. It is correct that, with the removal of ring-fencing—I am sorry that the party opposite finds this so hilarious—councils will have access to a greater tranche, if not the entire tranche, of money regarding which they can make their own decisions. They have their own priorities in using the money. Except for the schools grant and the grant from the health service, there is no limitation on how they spend that money, and that will be of great benefit as they go forward. When the noble Lord opposite was the leader of a council, I was also the leader of a council and I am sure that he, like me, would have given his eye teeth to get his hands on the entire budget.