Oral Answers to Questions

Debate between Paula Barker and Kemi Badenoch

Monday 7th March 2022 Commons Chamber

[Paula Barker (Liverpool, Wavertree) (Lab)]

12. What assessment he has made of the impact of reductions to local authority budgets on the Government’s levelling-up agenda.

[The Minister for Levelling Up Communities (Kemi Badenoch)]

Next year’s local government finance settlement makes available an additional £3.7 billion to councils, including funding for adult social care reform. This is an increase in funding of more than 4.5% in real terms and it will ensure that councils across the country have the resources they need to deliver key services.

--- Later in debate ---

[Kemi Badenoch]

I disagree with the hon. Lady. The levelling-up White Paper did make reference to council funding, and the financial settlement that I referred to earlier mentioned the cash increase. She will know that Gateshead receives 8.1% and that the Northumberland part of her constituency receives 8%. The fact is that we have given additional funding for levelling up. This includes £2.1 million from the community renewal fund and a £358,000 allocation from the welcome back fund. There is money going into her constituency and we are here to support as much as we can.

[Paula Barker]

Local government finance has been ravaged over the last decade under the mantra of austerity. Councils in the north have lost up to 50% of their core funding, and some have lost even more. The Secretary of State has said, “If you leave the free-play market forces entirely to themselves, then what you see is inequality growing, in particular geographical inequality”. Those were fine words, spoken at the convention of the north in my home city. When will the Department drop the spin on local government finance and genuinely improve councils’ core spending powers by factoring in inflation and national insurance increases, for which our cash-strapped local authorities are picking up the tab?

[Kemi Badenoch]

Labour Members continue to talk about losses in funding, but they forget to remind everyone of how we arrived in this position. It is because of their disgraceful management of the public finances. We have spent the last 10 years repairing the public finances, which is why we have been able to give the real-terms increase that will support all Labour councils.