Local Government Finance

Baroness McIntosh of Pickering Excerpts

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

Before the right hon. Gentleman disappears down his own rabbit hole, I will continue.

There is a theoretical surplus in 2013-14, but the right hon. Gentleman knows that we have an obligation to distribute the national non-domestic rate to authorities. The figure of £3 billion is overstated, because the Office for Budget Responsibility has not taken into account the number of grants that we have rolled into the block grant. We have done that because of its distributive effect, and by 2013-14 we hope that a new system of local government finance will be in place.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

This announcement is the other side of the coin for flood defence spending. Will my right hon. Friend explain what proportions of the budget, with the removal of ring fencing, will be spent on capital expenditure and on maintenance? Will he consult on the possibility, if councils find themselves short of money, of water companies adopting and maintaining new sustainable drainage systems?

[Mr Pickles]

The latter point will of course be a matter for my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs. On the capital programme, the various Departments will make their usual announcements in the reasonably near future, so that local authorities have an indication of their capital programmes.