Oral Answers to Questions

Debate between Lord Stunell and Simon Wright

Monday 17th January 2011 Commons Chamber

[Andrew Stunell]

I share the hon. Lady’s disappointment that the financial situation we face means that every part of the public sector has to take pain in order to put things right. The formula grant for Sunderland is £562 per head, and that means that for every £1 going to the less dependent authorities, Sunderland is getting £4.50. Her reduction of 8.9%, and of 4% next year, will in fact be an improvement because of the new homes bonus amounting to more than £500,000 this year.

[Simon Wright (Norwich South) (LD)]

I welcome the Department’s review of formula grant damping in time for 2013. Will the Minister consider the impact of damping on Norfolk county council, which next year will receive more than £20 million less than if the formula grant were given out on the basis of assessed need only? Will he ensure that from 2013 Norfolk gets a fairer funding deal as a result of this review?

[Andrew Stunell]

I thank my hon. Friend for that question. The local government finance review will start later this month and will indeed produce a new determination of funding for local authorities that gives them much more freedom to spend and raise their revenue, starting from 2013.