Oral Answers to Questions
Debate between Lord Pickles and Baroness Keeley(13 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Pickles
If business rates go through the roof, they will be caught by the “disproportionate” rule and those sums will be taken away and distributed to poorer areas. This was designed to help councils such as Barnsley to retain local growth. The figures that I have seen—we received some figures from Barnsley during the recent settlement—did not appear to be entirely accurate. I am happy to work with the hon. Gentleman to get the best possible deal for Barnsley.
Barbara Keeley (Worsley and Eccles South) (Lab)
Ministers—[Interruption]—have already made savage front-loaded cuts to council budgets, and now they want to top-slice the proceeds of business rate growth which they promised to local councils. Localising business rate growth should give local authorities an incentive to grow their business base and to create jobs. Will the Minister explain just how central Government’s top-slicing of business rate growth can provide that proper incentive? Is it not just another hit on local government finance?
Mr Pickles
The hon. Lady was clearly missed by Members on her side of the House, and indeed by those on ours, judging by that welcome.
The only top-slicing that will take place is with regard to disproportionate gains, and I am pretty confident that Kensington and Chelsea and Westminster councils will see enormous increases in their rates. It is only right that we take that money away and see that it is distributed to other parts of the country, such as to Barnsley. I would have thought that she would support that.
Oral Answers to Questions
Debate between Lord Pickles and Baroness Keeley(13 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Pickles
The Government are clearly looking to ensure that local authorities get the benefit of the economic decisions that they take. The key to that is the localisation of business rates. Clearly, were we to apply that to the City of London, it could pave the pavements with gold, so there must be some way of applying that measure to areas that are not as fortunate as, for example, Croydon, but I look forward to my hon. Friend’s submissions to the review.
Barbara Keeley (Worsley and Eccles South) (Lab)
Good local councils in areas of greatest need use their grant funding effectively to support people with disabilities, people who need care or housing, and children with special educational needs. Will the Secretary of State therefore tell the House what he is doing to help such councils beyond imposing the heaviest cuts on them and trying to stigmatise their work with the language of dependency?
Mr Pickles
As the hon. Lady knows, this was to be the year of the big cuts. Had the Labour party won the election, they would have imposed such cuts, and my job as Secretary of State was made considerably easier because I inherited a lot of the plans that Labour had prepared. She will also know that this Government have ensured that the most dependent councils face the smallest cuts, and that we have put in £6.5 million for Supporting People and transferred nearly £1.5 billion from the health service to help to support people. We have protected the vulnerable, and we expect sensible and responsible local authorities to do the same.
Oral Answers to Questions
Debate between Lord Pickles and Baroness Keeley
Mr Pickles
Absolutely. What was going to happen to local government was well showcased. It was clear from the previous Chancellor’s statement in autumn 2009 and the Budget earlier this year, before the general election, that at least £5 billion was coming out of local authorities and that that would be front-loaded. I would therefore expect prudent local authorities and prudent chief executives to have taken the necessary precautions.
Barbara Keeley (Worsley and Eccles South) (Lab)
The worst aspect of these cuts to local authority budgets, which amount to 28% in real terms over the next four years, is that they are front-loaded. The hardest hit councils are facing reductions in their grants next year of 14%, 18%, 20% or even more. That means they have to plan their service cuts and redundancies now, so may I urge the Secretary of State to think again about the scale of these cuts or to alter their phasing so that councils are not forced to take what will be very damaging crisis measures?
Mr Pickles
“As we look forward”, regeneration spending is
“not the biggest priority we face”
as there are “other competing priorities.” I apologise: perhaps I should have made it clear that those were the words of the now Leader of the Opposition, speaking on the Radio 4 “Today” programme on 12 April, just before the general election. That is the dilemma. The Opposition have a blank piece of paper. They oppose everything when they know, as we know, that they were going to impose £5 billion of front-loaded cuts on local authorities.