Local Government: Big Society

Lord Bishop of Liverpool Excerpts

Monday 28th February 2011 Lords Chamber

[Baroness Hanham]

The Government are not in the business of regulating local authorities on these matters. It is for local authorities themselves to come up with sensible and sustainable answers. Not every local authority is finding itself in trouble. Many local authorities have recognised the value of the voluntary sector and are determined to continue to support it in all the ways that they can. We should not be too disheartened by all this because, as I say, there is a complete recognition that the voluntary sector is of great value.

[The Lord Bishop of Liverpool]

Is the Minister aware that there are those who believe in the big society concept and who also understand the need for fiscal responsibility, but who nevertheless believe that there is an unevenness in the distribution of finances across the country and in particular the financial settlement with local authorities? Will the Minister be prepared to look again at the financial settlement to ensure that there is a fair and just treatment of local authorities right across the country?

[Baroness Hanham]

My Lords, we are not really on the subject of local government spending at the moment. We have had several discussions on the finance settlement. All I can say is that that finance settlement was demonstrated against a formula, the relative-needs weighting was increased so that money followed socioeconomic indicators. Banded floors were put in place so that the most dependent authorities got the smallest cuts and social service authorities and shire district councils were grouped together in four bands reflecting their relative reliance on central government grant. The right reverend Prelate’s view would suggest that the Government have not taken the greatest possible care with the local government finance settlement in these very difficult circumstances, and that is not the situation.