(5 years ago)
Commons ChamberLet me point out to the hon. Gentleman that this year we have given our local authorities access to £46.4 billion, a cash increase of 2.8% and a real-terms increase in funding. The settlement includes extra funds for local services, with a strong focus on support for some of our most vulnerable groups. It is part of a four-year settlement that has been accepted by 97% of local authorities, and gives so many areas access to substantially more funding than the least deprived. The average spending power per dwelling for the 10% most deprived authorities in 2019-20 is about 22% more than that for the least deprived.
Does my right hon. Friend agree that as part of the process of increasing the funding that is available, we should increase the practice of business rates retention as a way of incentivising local innovation and enterprise? In places like Cheltenham, it provides an incentive to build out things like our cyber-park, which will create a pipeline of local businesses providing income that can be spent on vital public services.
My hon. Friend makes the point very effectively about the innovation that we see in local authorities and he rightly underlines the work in his own community. Local authorities have campaigned for more flexibility and control over the money they raise, including the ability to create a more self-sufficient sector funded from their own resources. That includes the move to 75% business rate retention, with the benefits that that brings.
(5 years, 2 months ago)
Commons ChamberThe hon. Gentleman has made his point about HMRC, and I will ensure that it is relayed to the appropriate Treasury Minister.
Cheltenham has areas of relative affluence but also pockets of intense deprivation. Does my right hon. Friend agree that any applications must be assessed against the circumstances that prevail in individual neighbourhoods, rather than the town overall, which might lead to an artificial assessment?
My hon. Friend makes an interesting point. As we form the prospectus for the £600 million element of the fund, it is precisely these factors that we will weigh and consider to ensure it has the impact we want it to have.