Provisional Local Government Finance Settlement

Lord Lancaster of Kimbolton Excerpts

Wednesday 6th January 2021 Lords Chamber

[Lord Lancaster of Kimbolton (Con)]

The Oxford-Cambridge arc is an economic powerhouse, but we desperately need more new homes for skilled workers if we are to help drive the economic recovery post-Covid. The challenge for local authorities is the up-front funding of vital infrastructure such as roads and schools, given that council tax receipts will not come until after the homes are built. The new homes bonus is most welcome, and although I will not join the chorus for more money, may I simply ask my noble friend whether he thinks it could be better targeted at the areas that need it most?

[Lord Greenhalgh (Con)]

My Lords, I thank my noble friend for mentioning the Oxford-Cambridge arc. Unlike the Prime Minister, I err more towards the Cambridge end of it. My noble friend is absolutely right to draw our attention to the importance of getting the infrastructure right to unlock growth and the prosperity of this country. That is why, as part of planning for the future—we discussed this at length in connection with the Planning for the Future White Paper—we are looking at an infrastructure levy, which would be much more transparent and streamlined, as a way of raising the funds that local areas need to ensure that they have the infrastructure to unlock their potential.