(11 years, 9 months ago)
Lords ChamberMy Lords, given the importance of London to the nation’s economy as a driver of economic growth, will the Government address the situation in which more than £2 billion that London businesses pay in business rates is redistributed across the rest of the country, rather than ploughed back into economic development in London?
My Lords, I have a feeling of déjà vu about this question, which was asked when we were in opposition for exactly the same reasons. The noble Lord probably answered it. The distribution and the way the rates are set are not entirely a matter for the Government. I know that the mayor is making the representations that the noble Lord has made and which have been made for a number of years in both directions.
(11 years, 10 months ago)
Lords ChamberMy Lords, all I can say is that this is being done against the background of a formula which is pretty well understood. The average household spending power across the country is £2,000. The settlement is as fair as it can be in the financial circumstances.
The Minister tells us that she is presiding over this pure system of allocating resources between local authorities which is delivering fairness. Did Ministers change the formula for distribution so as to produce a result whereby, as my noble friend from the Dispatch Box pointed out, the most deprived areas are losing the most?
My Lords, the formula has not been, as has been suggested, tinkered with; that is how it has come out. It is fair to point out that the local government settlement is not the only funding that local authorities get; there is also the new homes bonus and other contributions that local authorities can have. It is not just the settlement.
I thank my noble friend for her very kind comments and welcome. The intention is to give mayors powers, but those powers will be subject to scrutiny by elected councils, which will have full scrutiny over what is being done. The terms of mayoralties have not yet been finalised.
My Lords, I add to the congratulations to the noble Baroness on her appointment. I fondly remember working opposite her on many occasions when she was a stout defender of traditional London boroughs and structures of local government. The Mayor of London today has made a power grab to take over the London region of the Homes and Communities Agency, the Olympic Park Legacy Company, the Royal Parks Agency and the Port of London Authority. It has also sought greater powers over traffic control and awarding rail franchises on routes into London and the allocation of the adult skills budget in London, and to have a greater say in health provision in the capital. Are those proposals supported by Her Majesty's Government and, if so, will they be the powers on offer to the other prospective city mayors?
My Lords, I appreciate that the Mayor of London is looking for greater powers and devolved policies. As the noble Lord will know, we welcome the contribution that the Mayor of London makes, and the new Government have already committed to genuine decentralisation of power. That may mean transferring further powers to the mayor, but that matter is still under consideration.