Local Government Finance Bill

Baroness Hollis of Heigham Excerpts

Wednesday 10th October 2012 Lords Chamber

[Lord True]

My Lords, I do not know whether my noble friend intends to support this but I think that if she did it would be very odd. We have just heard from her a clear statement of the direction of travel in which the Government wish to go. She sees 50% as the minimum and we are going further. Given the state of the economy that we have inherited and still have—and there has been agreement across the House on many things during the course of the Bill—limiting, in effect, the discretion of any Government in the future in this way in respect of local government finance would probably not be, if I may borrow the word, a prudent step. Therefore, if the party opposite presses this amendment, I certainly hope that my noble friends will not be gulled into that Division Lobby.

[Baroness Hollis of Heigham]

In that case, what does localism mean if its revenues are available for raiding by central government when it chooses?

[Lord True]

My Lords, I have made a general statement of principle about public finance. I do not think that anyone who has heard my contributions to debates on this or other Bills relating to localism would doubt that I am very strongly committed to it. I would like the direction of travel to be as my noble friend has indicated. I am simply saying that ring-fencing local authority provision for ever in this manner does not seem an appropriate way to tie the hands of any future Chancellor from whatever party.