Provisional Local Government Finance Settlement

Baroness Uddin Excerpts

Wednesday 6th January 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I remind everyone that we have seen a seismic contraction of the economy and that many people have lost their jobs and will need to retrain. This has been a dreadful pandemic and it continues to be extremely tough as we enter another lockdown, but with the glimmer of hope that we have with the vaccine being available. We are providing grant funding that is absolutely flat in cash terms. Baseline funding remains £12.48 billion, the revenue support grant has increased a tad from £2.32 billion to 2.33 billion. Other grants have increased from £4.98 billion to £5.26 billion. That is quite a sizeable increase. There is no reduction at all in cash year on year, with inflation at relatively low levels and, as I mentioned, huge amounts of support for Covid-related pressures. I think that is an excellent financial settlement for local authorities. It really is up to the people in town halls to show some civic leadership and decide what they tax the local residents. If they choose to tax them heavily then they may have to pay the price at the ballot box, but that is democracy for you.

[Baroness Uddin (Non-Afl)]

My Lords, I humbly succumb to the Minister’s statistical genius, so I am not going to go into that arena. I welcome all the resources and measures introduced by the Government so far, especially regarding homelessness and commitments towards easing the “no recourse to public funds” rule for families. The Minister will be aware that, in Newham and Tower Hamlets in particular, homelessness issues and overcrowding have contributed in part to the incredibly high numbers of infections and admissions. Yesterday in this Chamber we debated the commitment from the Government, and indeed all of us, regarding housing for families fleeing domestic violence. What consideration is being given to ensuring that that commitment and the Statement encompass and embrace all these very pressing needs and demands? How will we continue to ensure that the Government adhere to their own principles and desires to level up and be fair and equal and just?

[Lord Greenhalgh (Con)]

I thank the noble Baroness, Lady Uddin, for raising the issue of homelessness. I know from having visited the London Borough of Tower Hamlets on many occasions and the London Borough of Newham on a number of occasions that homelessness is a real issue. I would point out that this settlement is pretty good news: it is reasonable to put forward £100 million to start planning for move-on accommodation from temporary accommodation, which is not a place where you want families to be. That was provided in the summer. There is a commitment in the financial settlement of £750 million towards supporting people whom we have a statutory duty to house—the homeless—and £430 million of that is for move-on accommodation. I hope that assures the noble Baroness that we take issues of how to tackle homelessness very seriously.