Local Government Finance

Baroness Stuart of Edgbaston Excerpts

Wednesday 12th February 2014 Commons Chamber

[Brandon Lewis]

Members on both sides of the House may well be aware that until now the Secretary of State has not missed a local government finance settlement debate in this Parliament. He sends his apologies, and hopes to join in the debate later in the evening, but, as I am sure Members will understand, he is currently attending a Cobra meeting.

The coalition Government have been working determinedly to restore the public finances, which were left in such disarray by the last Labour Government. It has been complicated and difficult work, and difficult decisions have had to be made. It is in the context of our responsible, long-term economic plan that we have been consulting on the local government finance settlement for 2014-15. Our proposals are fair and balanced, and provide an effective basis for all local authorities to transform local services and promote efficiency. Following a wide range of representations and meetings, we confirmed last week that the settlement would remain almost entirely as announced in December. This is effectively the second year of a two-year settlement, which gives councils a new level of self-determination so that they can take control of their own finances.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

May I return the Minister to the words “fair and balanced”? The average cut in spending power for 2014-15 across England will be £71.44, whereas in Birmingham it will be twice that, at £145.33. How can I explain to people in Birmingham that that is “fair and balanced”?

[Brandon Lewis]

I am sure that the hon. Lady will not be surprised to learn that authorities such as Birmingham have higher spending power in the first place. The 10 most deprived areas in the country have an average spending power of £3,026 per dwelling, while the average spending power of the 10 least deprived is about £1,900.