Housing, Communities and Local Government: Departmental Spending

Ben Everitt Excerpts

Thursday 9th July 2020 Commons Chamber

[Ben Everitt (Milton Keynes North) (Con)]

I should start by drawing the House’s attention to my entry in the Register of Members’ Financial Interests.

We must reform local government finance. The formula grant system is unbalanced, outdated and unfair. It is a shame that we have delayed the review into local government finance, although that is for perfectly obvious reasons. But as well as reforming it, we must increase the quantum of funding, and I think this needs a grown-up conversation on localisation of revenue raising.

The current settlement is not ungenerous. Indeed, the increase in core spending power of 4.4%, which is £49.2 billion for local authorities, was the biggest in a decade. Milton Keynes received an increase of 6.6% in core spending power. This, of course, was all in February, before the world changed and before funding changed. Since then, £4.3 billion in support for councils has been issued by the Department for their additional pressures, for lost income and for the extra costs. The entire package for councils, businesses and communities comes to £27 billion. In my own local authority of Milton Keynes, we have received £137.6 million, which includes over £77 million for business rates relief.

Councils are our frontline. They deserve certainty and they deserve fairness. So it is very promising that the aforementioned review into local government finance is called the fairer funding review. This review should not, though, be an exercise in reslicing the cake. We need to level up local government finance—a phrase that I think may stick—but we also need to address the elephant in the room, which is social care. The rising costs of delivering social care are well known and recognised, but these costs are magnified by the unfairness of the current formula grant system.

We need to level up local government finance. We need to have a grown-up conversation about localised revenue raising. We need to increase the quantum. We need to remove the unfairness. We need to bake in a cross-party solution to social care. We need to deliver the fairer funding review.