Provisional Local Government Finance Settlement

Lord Campbell-Savours Excerpts

Thursday 13th December 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I acknowledge the great role that the noble Lord plays in his local authority district in Pendle and I recognise the great work done by local districts up and down the country. He will appreciate, however, that there are a lot of areas that are unitary, where there is not this two-tier system. A lot of what I have talked about, in answering questions and in the Statement itself, relates to the county councils, but much of this will benefit the district councils, where they exist, such as the business rate retention system. Again, Lancashire is a beneficiary of this and it is worth recognising that as well. I recognise the challenges that exist and I know that many local authorities struggle with the financial position. That said, we need to see how costs may be contained and where some back-office costs can be shared. That need not necessarily be via unitisation; it could be done by sharing some of the costs and back-office functions.

I should also say, on the multi-year settlements that the noble Lord referred to, that many councils—perhaps most councils, most councillors and most people offering services—would recognise their importance and desirability, because it gives a guarantee of how payments and settlements will be made into the future.

[Lord Campbell-Savours (Lab)]

My Lords, despite what the Minister said, there must be a connection between internet sales, tax raising and commercial rates. Will the Minister explain what is going on in that area? Who is involved in this work? Is it the Treasury or is it his department assessing what can be done with internet sales, because of the implications for local government finance? Are hearings planned? Are vast numbers of civil servants involved? Is a process of consultation going on? This is an extremely important area and we should be told a lot more about what is a subject of conversation all over the country. People are worried about the high street and they think that internet sales should be paying more. It would be interesting to know what is going on.

[Lord Bourne of Aberystwyth]

My Lords, I do not disagree with the noble Lord on the importance of the task, but I disagree with him about the forum. This is a Treasury issue. I will write to him, and copy the letter to other noble Lords, to give as much detail as I can on what is happening, but this is a broader issue. I do not disagree with him about the interaction between commercial rates in the high street and the issue about digital and online taxation, but I stress the point I made earlier: there is a movement away from the high street and noble Lords will be aware of that. I am sure we have all used digital services. Yes, there is an issue of fairness and an issue about where the taxation should lie, but I think that gives the answer to the noble Lord that it is the Treasury that is leading on that. I will certainly write to him with more details.