Provisional Local Government Finance Settlement

Debate between Lord Bourne of Aberystwyth and Lord Storey

Thursday 13th December 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord paints a gloomy picture that does not take account of the current year which, as I said, is a good settlement. I am sure that the noble Lord would acknowledge that. I spoke about the tough decisions and challenges of the past decade, which have coincided almost entirely with the period of austerity that followed the deficit we inherited. We can debate who was responsible for that, but in fairness the noble Lord must acknowledge that massive challenges had to be faced. At last we are coming out of that.

I know that there are housing challenges; in the department, we are seeking to meet them with some imaginative proposals on affordable and social housing, certainly in relation to rough sleeping. Social care is a challenge, which is why we committed the £650 million referenced in the Statement. I recognise that we have to do more for the life chances of people up and down the country who deserve a good start in life. That is why local authorities are to be commended on their massive job throughout what has been a difficult period. However, the period has come to an end and we are coming out of it with today’s Statement.

[Lord Storey (LD)]

My Lords, the Statement says that a few authorities will undertake a,

“significant amount of borrowing for commercial purposes”.

It also states that there is concern from,

“CIPFA and others about the risks that these local authorities are exposing themselves and local taxpayers to”.

Could the Minister write to me, telling me which authorities those are? Could he also tell me what further interventions might be considered? I should declare my interest as a vice-president of the Local Government Association.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lord for that valuable point. I asked questions about that when I saw the draft Statement. First, I should reassure noble Lords that I do not think that there is any cause for concern at this stage. As I understand it, there are proposals on behalf of some local authorities and one can understand that, where this involves borrowing, it might cause concern because it would be unfair to place this on local authorities and council tax payers if it were to turn south. As the noble Lord—quite understandably—requested more clarification, I will write to him and place a copy in the Library.