Local Government and Social Care Funding

Debate between Lord Johnson of Marylebone and James Brokenshire

Wednesday 24th April 2019 Commons Chamber

[James Brokenshire]

My hon. Friend makes the point very effectively about the innovation that we see in local authorities and he rightly underlines the work in his own community. Local authorities have campaigned for more flexibility and control over the money they raise, including the ability to create a more self-sufficient sector funded from their own resources. That includes the move to 75% business rate retention, with the benefits that that brings.

[Joseph Johnson (Orpington) (Con)]

I wonder whether my right hon. Friend will consider changing the funding system to reward efficiency. As he knows, councils such as Bromley, which is near his Bexley authority, are historically low-cost authorities that have achieved enormous efficiencies over the years, yet they are asked again and again to make further efficiencies. Does he agree that it is time to adjust their baselines to reflect the historical efficiencies they have achieved?

[James Brokenshire]

I know that Bromley does incredible work for its local community. It has innovation, efficiency and real quality at the heart of its efforts. Equally, my hon. Friend raises an ongoing issue in respect of our fair funding review—the review of relative needs and resources. As we reflect on the submissions we have received to date in respect of how that balance is struck, we will certainly give careful consideration to a range of factors to ensure that the funds are applied in the appropriate way to recognise the relative needs and resources of individual authorities.