Local Government Funding

Lord McKenzie of Luton Excerpts

Wednesday 8th July 2015 Lords Chamber

[Baroness Williams of Trafford]

My Lords, there were a few questions in there, but I just cannot share the view that the Government are stopping local government from raising its own income. On business rates retention and the new homes bonus, local authorities have seen incomes above what was expected from these areas. On need, I will list the 10 authorities with the highest spending power per dwelling: Hackney, Newham, Tower Hamlets, Camden, Knowsley, Islington, Southwark, Brent, Lambeth and Haringey. They are all Labour authorities.

[Lord McKenzie of Luton (Lab)]

My Lords, can I take the Minister back to spending power—the Government’s favourite measure, as I understand it—and pick up some of the areas that she just identified? If noble Lords look at the two-year period to 2015-16, the local authority ranked first in the multiple deprivation index had a 10% cut in its support; Newham, ranked second, had an 11% cut; Knowsley, ranked 12th, had an 11% cut; Middlesbrough, ranked 27th, had a 10% cut. Yet, at the other end of the spectrum, Woking, ranked 294th, had a 2.3% increase and Wokingham, ranked 325th, had a 2.9% increase. How is this a manifestation of the fact that we are all in it together?

[Baroness Williams of Trafford]

My Lords, the two authorities that the noble Lord mentioned, Hackney and Newham, have spending of almost £3,000 per dwelling and £2,800 per dwelling respectively. In terms of quantum, they are doing considerably better than a lot of other local authorities.