Local Government Finance Settlement

Baroness Farrington of Ribbleton Excerpts

Thursday 22nd January 2015 Lords Chamber

[Baroness Farrington of Ribbleton (Lab)]

My Lords, with the leave of the House, I should like to speak in the gap. Lancashire County Council found itself, with the Social Fund transfer from DWP, with less than had been spent—a cut. The Local Government Association states that the core funding budget for Lancashire County Council has fallen by 38.79% over the life of this Parliament, while the net budget for Preston City Council will have fallen by 31% over the same period.

I, too, declare a former interest of being involved in local government. There have always been discussions at what were called local government consultative finance meetings. What has changed is the ability of local authorities to initiate new projects because of the tight grip on spending levels, which are based on an assessment of grant distribution and may in no way at all recognise a genuine local assessment of need. There will never be a perfect funding formula for grant because there will always be disputes about weighting levels—how much this or that particular factor ought to be taken into account. However, once you have a vicious system that prevents a local authority from being able to move away from a target set by Whitehall, that is the beginning of the end of local government.

Whitehall does not know best what is needed in Preston and the county of Lancashire, just as it does not in other areas. There could be an argument about how much grant is deserved, whether it is in my noble friend’s Newcastle or in Preston or Surbiton. If one looks at everything that has advanced human life over the past century and a half, a whole range of issues—including public education for all, nursery education and youth services—began as local government initiatives. To me, the real tragedy is that if we have a system that prevents local authorities from experimenting and innovating, we will all suffer.

It is extremely important that we take at face value what people say about their satisfaction with local government, or indeed with the Government or politics. I remember a constituent speaking to me about a reduction in a particular service. I said that the alternative was worsening primary school staff/pupil ratios. His reply was: “I don’t want you to start confusing me with the facts”.