Provisional Local Government Finance Settlement

Bob Seely Excerpts

Thursday 17th December 2020 Commons Chamber

[Robert Jenrick]

I thank the Chair of the Select Committee for all his work and that of his Committee over the year. He is right to say that the figures we quote of an up to 4.5% real-terms cash increase in core spending power are dependent on the choices that local councils make in the weeks and months ahead, but one would expect that; local councils and the local democratic process will have to balance up the competing interests of providing public services and ensuring that hard-working people are not facing excessive increases in local council tax, and those will be different judgments in different parts of the country.

I will of course keep the covid costs being incurred by local councils under review. We have made good on our promises time and again since the start of the pandemic. Early in the pandemic, the Local Government Association came before the hon. Gentleman’s Committee and estimated that costs incurred by local councils would be around £10 billion. We are going to end this financial year having provided local councils with, I suspect, about £10 billion, and we are providing further billions of pounds into next year. So we can see the Government’s commitment and determination to support local councils.

[Bob Seely (Isle of Wight) (Con) [V]]

First, I wish to thank the Minister for his decision on the housing algorithm, the statement today, and the very significant work that he, his Ministers, the Department and indeed the Isle of Wight Council has done during the pandemic, which has been vital. In the fair funding review, the Government for the first time recognised the additional cost of providing public services on the Isle of Wight— in effect, they recognised the Island as an island, and I am grateful for that. For understandable reasons, due to the covid pandemic, the review was put on hold. Does he accept that this delay has prevented Isle of Wight Council, despite its undoubted best efforts, from supporting Islanders to the same extent that mainland councils can support their residents? Finally, will he meet me and my local council to discuss funding these additional costs, as part of a consultation process and prior to the local government financial settlement for 2021-22?

[Robert Jenrick]

I would be happy to meet my hon. Friend and the leader of his local council, as would, I am sure, the Minister for Regional Growth and Local Government, my hon. Friend the Member for Thornbury and Yate (Luke Hall). I do not agree that the Isle of Wight has lacked the resources to respond to the pandemic; from what I have seen it has done a sterling job. The Isle of Wight has had significant amounts of additional support, and total covid-19 funding for the council so far has been £20.3 million. We have also provided support for the local business community amounting to £48 million, which has been brilliantly dispensed by my hon. Friend’s local council, supporting 4,500 small and medium-sized businesses on the Isle of Wight. I am pleased that my hon. Friend supports yesterday’s announcement on the local housing need question and that he will get on and build more homes on the Isle of Wight in the years ahead.