Provisional Local Government Finance Settlement

Andy Carter Excerpts

Thursday 17th December 2020 Commons Chamber

[Robert Jenrick]

I join the right hon. Gentleman in thanking and praising the staff of his local council and wishing Mr Collins a happy retirement. With respect to the balance of funding across the country, I am afraid that the right hon. Gentleman is mistaken. This settlement will ensure that funding is there for all councils in all parts of the country. We have taken particular care to address the issue that he raises. In fact, County Durham will receive £5.2 million in equalisation payments. That will ensure that it has a 4.5% cash and real-terms increase in core spending power, which comes on top of a 7% increase last year—very substantial increases to ensure that his constituents get good-quality public services.

[Andy Carter (Warrington South) (Con)]

I welcome my right hon. Friend’s statement, and particularly the review of the effectiveness of local authority external audits. Warrington Borough Council’s accounts dating back to 2017-18 still have not been signed off. Given the recent news from Croydon Council, which was effectively declared bankrupt when it issued a section 114 notice last month, does he share my concerns about Labour-controlled Warrington Council, which has debt of around £1.6 billion? Similarly to Croydon, it has used the funds to purchase a shopping centre, offices, a bank and—guess what?—an energy company. Does he agree that it is time for a Government inquiry into the level of council borrowing, which puts local services at risk and loads huge debt on to council tax payers such as my constituents in Warrington South?

[Robert Jenrick]

My hon. Friend makes a very important point. We all want to see councils have access to funding at low interest rates to fund housing and regeneration within their own boundaries. We do not expect local councils to indulge in risky financial ventures, either within their own area or beyond. That is a mistake. Many local councils quite clearly do not have the financial management skills to do that. My hon. Friend highlights at least two egregious examples of that, in Nottingham and Croydon. Warrington may well be another; I will look it up myself after this statement. We need to bear down on those councils that appear to be using taxpayers’ money as if it were Monopoly money and respect the individuals who actually pay the bills at the end of the day.