Oral Answers to Questions

Andrew Gwynne Excerpts

Monday 28th January 2019 Commons Chamber

[Rishi Sunak]

This is a consultation, and I would be happy to receive informed opinion from the hon. Gentleman, the Chair of the Select Committee. I would point out, however, that the funding formula covers broadly universal services used by the majority, if not all, of a council’s residents. As we disclosed transparently in the consultation document, population is by far and away the most important factor driving the need for those services. Deprivation was shown to account for less than 4% of the variation in spend in the area.

[Andrew Gwynne (Denton and Reddish) (Lab)]

South Cambridgeshire District Council, deprivation rank 316, has seen a spending power cut of just £21.85 per household this year compared to 2010. Knowsley Council, deprivation rank two, has seen a spending power cut of £1,057 per household, while Hackney, deprivation rank 11, has seen the largest cuts in spending power of £1,406 per household. How is that fair?

[Rishi Sunak]

I have some figures, too. Perhaps the hon. Gentleman would like to take account of the fact that the spending power per household of the most deprived authorities is today 23% higher than those that are the least deprived.

[Andrew Gwynne]

There are lies, damned lies and statistics. The Minister cannot get away from the fact that poorer areas are poorer on his watch and that health inequalities are widening on his watch. The situation is set to get worse as he seeks to continue with his reverse redistribution, shifting funds from the poorest communities to some of the wealthiest. Will he now agree, in the interests of transparency, to Labour’s call for the National Audit Office to independently scrutinise the fairness of his so-called fair funding review before it is implemented?

[Rishi Sunak]

I do not think that I heard a rebuttal of the statistics I outlined. It is clear that the Government are supporting people in every part of the country. We are providing £1 billion of extra funding to deliver social services and a real-terms increase in funding for local government in the next coming year.