Local Government Finance

Andrew Love Excerpts

Monday 18th July 2011 Commons Chamber

[Mr Pickles]

I am grateful for my hon. Friend’s comments. This system was designed for the go-getter that she undoubtedly is, and it will do a lot of good for her council. We will ensure that this system releases local authorities from the shackles of failure.

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

Every time the right hon. Gentleman utters the words “fair” and “equitable”, we become much more sceptical on this side of the House as we realise what is happening under this scheme. While Westminster will roar ahead over the next few years, councils like mine in Enfield in the outer boroughs of London will do very badly, yet many of the people who live in Enfield work in Westminster, and many of the businesses in Westminster are run by people from Enfield so there is an interdependence. What recognition will there be in the system that although many people contribute to the so-called growth in local authority areas, not all of them live there?

[Mr Pickles]

The hon. Gentleman raises a very important point. Already the London councils are working on a pooling system for the receipts of the business rate, and are fairly well advanced in their planning. The advantage of having pooling across London is that any growth in Westminster—the hon. Gentleman is right to say that it will indeed be great—will be shared with the people of Enfield. I urge him to look at the part of the consultation paper that deals with pooling. He makes a very reasonable point and something clearly has to be done about it. I would expect other parts of the country also to pool so that rich authorities and poor authorities can both enjoy the benefits of growth.