Local Government Finance

Debate between Sajid Javid and Philip Dunne

Wednesday 7th February 2018 Commons Chamber

[Sajid Javid]

I can tell the hon. Gentleman that the core spending power for Stoke-on-Trent—with hyphens—is increasing by £3.5 million in the settlement. Indeed, the core spending power per dwelling for Stoke-on-Trent is higher than the average for the class. I hope he welcomes that.

The consultation on fairer funding closes on 12 March and I urge all those with a stake in the system to make their voices heard. We aim to introduce this new approach from 2020-21.

[Mr Philip Dunne (Ludlow) (Con)]

I applaud my right hon. Friend for launching the consultation on fairer funding. Will he be able to reassure the House that, in contrast to some of his predecessors who have said nice words about fairer funding but have not reflected the significant changes that were introduced under the previous Labour Administration, the consultation will inform the next spending review so we will actually to see it put into practice?

[Sajid Javid]

I can give my hon. Friend that reassurance and I take this opportunity to thank him for the strong representations he has made on behalf of Shropshire, which have fed into the settlement.

The business rates retention programme will also be introduced in 2020-21. It will give local authorities powerful incentives to grow their local economies. So far, this has been a resounding success. Under the current scheme, local authorities estimate that they will receive about £1.3 billion in business rates growth in 2017-18, a significant revenue stream on top of the core settlement funding that is set to continue into 2018-19.