Local Government Funding

Lord Ponsonby of Shulbrede Excerpts

Wednesday 8th July 2015 Lords Chamber

Asked by

[Lord Ponsonby of Shulbrede]

To ask Her Majesty’s Government what plans they have to restore the link between funding and need to local government funding; and what assessment they have made of the impact of local government funding cuts on both the most and least deprived local authorities in the United Kingdom.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)]

My Lords, this Government have shifted their approach away from keeping authorities in England dependent on grants to providing councils with the tools and incentives they need to grow their local economies and promote housebuilding through business rates retention and the new homes bonus. We continue to deliver a fair settlement for all, where the councils with highest needs for services receive more funding and have higher spending power than less-deprived authorities. This is a devolved matter outside England.

[Lord Ponsonby of Shulbrede (Lab)]

I thank the Minister for that Answer. The Local Government Association has shown beyond doubt that there have been greater cuts for people living with greater deprivation, and last November the National Audit Office criticised the Government for not properly understanding the extent of cuts to front-line services. What evidence of financial stress are the Government looking for in local authorities to be sure that they can indeed meet their statutory responsibilities and maintain those front-line services?

[Baroness Williams of Trafford]

My Lords, the Government do not agree with either the NAO analysis or the LGA analysis because neither takes into account the better care fund or the public health fund. On stress testing, local government has certainly proved itself well capable of delivering good services, with satisfaction remaining the same or increasing. In terms of delivering their statutory functions, there is no evidence at this stage that they are failing to do so.