Budget Resolutions and Economic Situation
Debate between Lord Pickles and Nicholas Brown(9 years, 9 months ago)
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Mr Pickles
It is very straightforward; it is the same scheme that has existed since the retention scheme was introduced. It is the growth in the business rates. If a council goes out of its way to bring in new investment, it is only right that it should not be penalised for doing so, as it would have been under Labour. It should reap the benefits. I know that Opposition Members have difficulty with the idea that people should be rewarded for creating wealth and working for the common good, but that is how it is going to be. The Government are helping to expand local economies, and we also want to expand powers for local areas. As I have said, we have already devolved significant powers to the Greater Manchester combined authority.
Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)
Will the Secretary of State give way?
Mr Pickles
In a moment. The right hon. Gentleman is a very distinguished Member, but he should wait for his turn like the rest of us.
That devolution of powers to Greater Manchester is the most historic development in civic leadership for a generation, and it will enable Manchester to support business growth, skills and better health and social care. A new devolution deal for West Yorkshire will give local councils greater responsibility for developing local skills, transport and employment opportunities. Across the country local areas are benefiting from new powers and resources to help their local economies flourish. I will now give way to the very distinguished right hon. Gentleman.
Mr Brown
The Secretary of State has not mentioned local authorities in the north-east of England—inadvertently, I am sure. He also failed to answer the question put to him by my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah), and he has failed to make the case for the balkanisation of the business rate. Mrs Thatcher’s legacy was to have the business rate raised on the ability to pay and distributed on the basis of need—I am sure that I can remember her saying that to the House. Why is he allowing it to be balkanised?
Mr Pickles
The right hon. Gentleman is a very distinguished Member of this House and no doubt has many things on his mind, so perhaps he has temporarily forgotten that we created a combined authority for Newcastle last year, which I understand is flourishing. Indeed, I anticipate that it will be the beneficiary of more devolution in the not-too-distant future. He talks about the balkanisation of the business rate, but it seems to me that if we are offering rewards to people who have worked hard in a local area, it would be grossly unfair to take money away from Newcastle just because it has done particularly well. He will also know that the Government are currently reviewing the business rate to ensure that fairness continues and that greater fairness is possible. I am sure that I speak on behalf of the whole Government when I say that we very much look forward to hearing the contribution that he will want to make on that.
The 2014 and 2015 growth deals are enabling 39 local enterprise partnerships to join up with councils and businesses to decide their own priorities. The funding can be used for investment in housing, roads, broadband or any other infrastructure. Some £12 billion will go towards local economies, and we have already agreed £7 billion of local projects. The result will be more new homes and infrastructure and greater support for local businesses to train young people, enhance skills and create jobs.
Britain has stepped back from the brink and started to recover from the deep failures of Labour’s great recession. Under our watch, the deficit has been cut and businesses are growing. Confidence is returning and house building is increasing. The number of first-time buyers is at a seven-year high and lenders are offering the most competitive range of mortgages ever. Local economies are growing and using their new powers to support businesses. That has happened under our watch only because this Government have provided the right economic leadership and because our long-term economic plan is working. The Budget will keep us on the road to economic recovery and prevent Britain from returning to the chaos of the past.
Oral Answers to Questions
Debate between Lord Pickles and Nicholas Brown(11 years, 10 months ago)
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Mr Pickles
My hon. Friend must accept that we took more into consideration than the grant going in and that we have moved on to spending power, which is what the Local Government Association and the Labour Opposition wanted to see. The local government spend is £114 billion. That is twice the size of the defence budget and more than we spend on the national health service. Even his own authority must play a part in reducing public spending to deal with the deficit we were left by the Opposition. The new homes bonus gives the authority an opportunity to make money.
Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)
I understand what the Secretary of State just said, but the obligation is not fairly spread across all local authorities in England. Will he reconsider central Government grant aid to local authorities and the relationship between that and the obligation to provide statutory social services, as the demand for such provision is steadily rising in inner-city areas while the grant is steadily being reduced?
Mr Pickles
That is of course why we have given additional sums to help those areas that are more reliant. That is why a place such as Newcastle will receive something like £600 per household more than somewhere like Wokingham. That is a sensible thing to do, and the right hon. Gentleman should support that, rather than decry it.
Oral Answers to Questions
Debate between Lord Pickles and Nicholas Brown
Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)
The Minister will know that more rain fell on Newcastle upon Tyne and the surrounding areas in a few hours last Friday than would normally fall in the whole month of July. The resulting floods damaged businesses, people’s private homes and the transport infrastructure. Ministers will want to join me in thanking the local authority employees, who responded magnificently, and the emergency services more generally for their response. Will the Secretary of State look again at the Bellwin formula to see whether it works reasonably? It is an old formula, and possibly ripe for revision to deal with exceptional circumstances of that kind.
Mr Pickles
The right hon. Gentleman will be very familiar with Bellwin and the formula and he is right to praise the emergency services and local people. I have spoken to friends in the area, and I know the events were traumatic. I recall the enormous damage and wreckage—both physical and psychological—caused by a flash flood in my constituency a few years ago. The Government have not yet received an application under the Bellwin rules, but I can assure him that when it comes, we will look at it most sympathetically in terms of the formula.