Local Authority Finances

Baroness Taylor of Stevenage Excerpts

Tuesday 6th February 2024 Lords Chamber

[Baroness Penn (Con)]

My Lords, we are committed to broader reform of local government finance, but we have said, in recognition of the disruption and uncertainty caused by the pandemic, that this will be something for the next Parliament. We have also set out ambitious proposals when it comes to devolution of greater powers and greater financial decision-making to local government. That starts with the trail-blazer authorities in Greater Manchester and the West Midlands but will be on offer more widely across the country.

[Baroness Taylor of Stevenage (Lab)]

My Lords, whenever there are questions about local government funding in your Lordships’ House, we consistently hear Ministers tell us how much more funding has been granted, but I cannot help wondering if someone in DLUHC needs a new battery for their calculator. The data from the House of Commons Library reveals that there will be a £5.8 billion shortfall in the coming financial year, when prices are adjusted for inflation. Every council bar one—the Greater London Authority —is expected to experience a real-terms cut in funding, with 218 authorities, which is more than two-thirds, experiencing a reduction of more than 30%. We heard the Minister’s figures again today, but what would she say to the leader of Plymouth City Council, whose funding has reduced from £110 million in 2010 to £12 million in 2024?

[Baroness Penn (Con)]

My Lords, I do not recognise the figures that the noble Baroness has put forward. The settlement, which we announced in its final form, represents a real-terms increase for councils compared to last year. There is also a funding floor in place to ensure that, before decisions on council tax are taken into account, councils across the board have certainty. I would be interested to know what additional finance the party on the Benches opposite is planning to put into local government.