Oral Answers to Questions

Afzal Khan Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Mr Speaker]

I do not know what the hon. Gentleman knows about Oxfordshire, but we will hear from the fella later. We look forward to it. A sense of anticipation is developing in the House.

[Afzal Khan (Manchester, Gorton) (Lab)]

7. What discussions he has had with the Secretary of State for Housing, Communities and Local Government on changes in the level of funding for local government since 2010.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

It is right that money that is spent locally is raised locally. In 2010, councils were 80% dependent on central Government grants; by 2020, the vast majority of money spent locally will be raised by local councils.

[Afzal Khan]

The County Councils Network warned this week that

“the worst is yet to come”

for local government and that several authorities risk going bust. A survey of its members revealed that two thirds will struggle to balance their budget by 2021 unless more funding is made available, estimating the funding gap at £3.2 billion over the next two years. Is the Chancellor aware of the effect his austerity agenda is having on local services? Will he take responsibility for ending this crisis in our local councils?

[Elizabeth Truss]

As I said, we have moved from a situation in which local councils were majority funded by central Government to one where local councils are accountable for the money they spend and raise locally. We have given councils the extra ability to raise funds. I note that many councils have reinvented themselves, are doing things differently and are saving money, and public satisfaction with local services has held up.