Provisional Local Government Finance Settlement

Debate between Alberto Costa and Robert Jenrick

Thursday 17th December 2020 Commons Chamber

[Robert Jenrick]

I will happily look into the issue that the hon. Gentleman raises, but £1 million is not a great deal of money in the context of the £39.8 million that the Government have provided to Cheshire West and Chester Council to meet its covid-19 expenditure. If that is correct, it rather suggests that we have made good on our promise to ensure that that council, like every other, gets the resources it needs. In case the hon. Gentleman would like to know, the settlement for next year for Cheshire West and Chester ensures a 4.1% cash and real-terms increase in core spending power, which builds on a 6% increase last year.

[Alberto Costa (South Leicestershire) (Con) [V]]

Conservative-led Blaby District Council is one of the best-run councils in our country. Conservative council leader Terry Richardson asked me today how the Government will compensate councils such as Blaby for the loss of the new homes bonus. For context, that is a loss to Blaby District Council of more than £1 million. If the Secretary of State does not have the answer to that specific point, will he undertake to write to me with a specific response on the data that Blaby has to work on?

[Robert Jenrick]

I will happily write to my hon. Friend with the full details with respect to Blaby District Council. Across the country, we have announced today that we will be doing a further year of the new homes bonus, backed by over £600 million of Government money, but we will also be consulting on the future of the new homes bonus. The new homes bonus is an important part of the finances of many local councils, but it is widely perceived to be a poor incentive for councils to get on and build homes, so the consultation will ask how we can develop a new incentive that supports those councils that need to build homes and those that have high ambitions to get on and build. Fortunately for my hon. Friend, his council and those that surround it in Leicestershire are among the most ambitious councils in the country when it comes to house building.