London Boroughs: Financial Support

Lord Jamieson Excerpts

Monday 3rd November 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I hope the work we have done so far will illustrate to the noble Baroness and other noble Lords that we are committed to improving how we assess need to make sure that central government funding is distributed fairly to the places that need it the most. Our proposals use the best available evidence so that we can more effectively capture variations in demand for services. A particular bugbear for me over the years—I am sure the noble Baroness will have heard me say this—is that we need to identify in local authorities pockets of high deprivation within generally more affluent areas. We continue to explore and review the new data that comes forward on measures of deprivation, and a final decision on the inclusion of the 2025 index of multiple deprivation will be made in the autumn, when we set out our funding plans for local government.

[Lord Jamieson (Con)]

My Lords, I declare my interest as a councillor in central Bedfordshire. This Government have said that their priority is growth. The previous Conservative Government incentivised councils to grow their local economies through a share of business rates growth and the new homes bonus, which many councils use to support economic growth. The new homes bonus has already been removed, and now this Government are resetting business rates, causing a severe financial squeeze on high economic growth councils. Are this Government no longer interested in growth?

[Baroness Taylor of Stevenage (Lab)]

The exact opposite is true. We are supporting our councils, which is why we have increased the overall spend on local authority funding, providing over £5 billion of new grant funding over the next three years for local services, including economic development services. The other work we are doing alongside that, including the Planning and Infrastructure Bill, which we will debate later today, lays the foundations so that local authorities have a clear run to improve the economies of their local areas.