Local Government Finance

Debate between Steve Double and Andrew Gwynne

Wednesday 5th February 2020 Commons Chamber

[Andrew Gwynne]

My right hon. Friend is right on that. Councils cannot change their council tax base overnight. If their properties are predominantly in bands A and B, that is the council tax base for that local area. Governments of all political persuasions over the years have always recognised that not every council has the same baseline and the same ability to bring in enough money for basic, decent statutory public services, which is why we had the rate support grant in the 1980s and the revenue support grant from the 1990s onwards. Those things were in recognition of the need for a redistribution of funding to areas that cannot generate enough funding from council tax and business rates alone.

[Steve Double (St Austell and Newquay) (Con)]

May I gently say to the hon. Gentleman that not all deprivation is found in urban areas, and that places such as Cornwall, which have had a raw deal on central Government funding because of the formula put in place by the Labour party, have for decades received lower levels of funding, despite being some of the poorest parts of England? It is this Government, with the fair funding review, who are going to put that right.

[Andrew Gwynne]

I suspect that the hon. Gentleman does not understand the fair funding review. I have never said that deprivation exists only in urban areas. Deprivation is a fundamental part of the formula that exists now, so if there is deprivation in his constituency—and it is more likely that there is—his council will get an element of formula attributed to that deprivation. But to take money from some of the poorest communities in the country in order to give it to the richest communities in the country, which have the ability to raise sufficient locally, is not one nation—it is reverse redistribution, and it is penalising the poorest councils and the poorest communities. He should reflect on what he has said.