Local Government Finance

Angela Smith Excerpts

Wednesday 8th February 2012 Commons Chamber

[Grant Shapps]

I shall take interventions from those who have not yet had a chance to intervene. I give way to the hon. Member for Penistone and Stocksbridge (Angela Smith).

[Angela Smith (Penistone and Stocksbridge) (Lab)]

On the basis of what the Minister has said, how is it that the 30th most deprived borough in the country gets an above-average reduction in spending?

[Grant Shapps]

I explained that at some length about five minutes ago, but I shall cover it again. If an area is more dependent on money coming from a particular source, and that source is the national Government, even when we make incredible efforts to keep down the reductions it is always possible for people from that area to stand up and say, “Ah, we have a bigger reduction in spending power.” That is because more of the area’s money comes from the public purse rather than being raised locally from local taxpayers.

I would have thought that Opposition Members would understand that fairly straightforward calculation. They have never told us whether they agree that we should have increased the needs index from 73% to 83% and whether they would have put in transition funding of £96 million, I think, last year, and a further £20 million this year, to make sure that not a single area has had to have a reduction of more than 8.8% this or last year.