Local Government: Finance

Lord King of Bridgwater Excerpts

Monday 13th December 2010 Lords Chamber

[Baroness Hanham]

I do not agree with that. I think that we all have an aspiration to see the big society. We all want to see communities working with each other; we want to see charitable and voluntary organisations working better and doing more; and we want to see neighbourhoods and communities getting together to help each other. Therefore, I do not accept what the noble Lord says. I think that this philosophy will work with a reduction in resources because it will gain in momentum.

[Lord King of Bridgwater]

My Lords, did the Minister notice that the Government were accused by the noble Lord, Lord Beecham, of suffering from a serious medical condition called “deficit obsession disorder”? Has she also noticed that a new disease is now prevalent on the Benches opposite? As my noble friend pointed out, the previous Government, when in government, had planned to make substantial reductions. However, now that they are in opposition, they have a serious medical condition called “ignore the deficit disorder”. I listened carefully to the noble Lord and did not hear a single suggestion as to any reduction that could be made. Everybody knows that this has to be a very tough settlement. It is not the end of local government as we know it.

A thousand years ago I was Minister for local government. I sense that over the years the constraints on local government and how it has to vie between different expenditures have grown and grown with greater Treasury control. The best hope and a big help for local government going into this difficult time is maximum flexibility so that it can use its funds in ways that make most sense within its own area. I hope that that will be possible within this settlement.

[Baroness Hanham]

I thank my noble friend for that. He will also recall that thousands of years ago I knew him when he was Minister for local government. I am not quite sure what that says about either of us.

I accept what my noble friend says. First, the Opposition have not offered anything by way of a useful contribution to how this deficit will be dealt with. We have had considerable carping but no ideas have been offered as to what they would have done instead to deal with the deficit that they caused. Of course, the flexibility needed to deal with budgets, policy and organisation is absolutely essential. That will come directly out of the Localism Bill and how we look forward to local government working in the future.