Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 17th January 2011 Commons Chamber

[Robert Neill]

No, sir.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

7. What assessment has been made of the likely effects on local authorities in areas of deprivation of reductions in formula grant funding.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)]

We have delivered a fair funding settlement for local authorities that takes into account the particular circumstances of each area. Our proposals ensure that no authority sees a reduction in revenue spending power greater than 8.9% in each of the next two financial years.

[Bridget Phillipson]

The Minister apparently does not understand, or does not care about, the scale of the challenge facing constituents in deprived areas such as Sunderland. Does he seriously expect my constituents to be grateful for the hammering that they are taking in order to protect affluent areas such as Surrey?

[Andrew Stunell]

I share the hon. Lady’s disappointment that the financial situation we face means that every part of the public sector has to take pain in order to put things right. The formula grant for Sunderland is £562 per head, and that means that for every £1 going to the less dependent authorities, Sunderland is getting £4.50. Her reduction of 8.9%, and of 4% next year, will in fact be an improvement because of the new homes bonus amounting to more than £500,000 this year.