Caroline Flint
Main Page: Caroline Flint (Labour - Don Valley)
Greg Clark
I do not think it is terribly localist to prescribe what that percentage should be, but it is right that as we take a more localist direction, we want a greater connection between the behaviour of local councils and the revenue being raised. That is the direction in which we are going, but it would be wrong to prescribe a percentage.
Caroline Flint (Don Valley) (Lab)
Two weeks ago the High Court ruled that the Secretary of State acted unlawfully when he scrapped regional housing plans, comparing him with Henry VIII. His Majesty’s reply was that it did not matter because the Government were going to abolish them in the localism Bill anyway, but that could take nine months to become law and the confusion that the Government have created has undermined the construction industry and led local councils to ditch 1,300 new homes every day. Will the Minister confirm that, in the mean time, local councils should get on with supporting the construction of the homes that the country so badly needs?
Greg Clark
The right hon. Lady makes a mistake that afflicted the Government of whom she was a member—the fatal flaw of confusing plans with homes. In many cases there was an inverse relationship: the higher the target, the lower the number of homes actually built. That is why we want to reform the planning system. The Government’s intention has been absolutely clear. There is not a councillor, planner or developer in the country who does not know that the regional strategies are on the way out and will be buried and interred for ever.
The Parliamentary Under-Secretary of State for Communities and Local Government (Robert Neill)
Our colleagues in the Department for Environment, Food and Rural Affairs remain committed to funding fully local authorities’ new burdens under the Flood and Water Management Act 2010. Up to £36 million a year in total will be provided directly to lead local flood authorities for all those new burdens, and in addition local authorities will spend money supported by formula grant from our Department. I will certainly consult my colleagues on the PPG to which my hon. Friend refers.
Caroline Flint (Don Valley) (Lab)
It is not really turning out to be a very good day for the Secretary of State, but you know what, it has not actually been a very good fortnight since he told council leaders on 6 November that talk of front-loaded cuts was “fiction”. Now it seems that reality is beginning to dawn on him. According to a report in the Local Government Chronicle, he has been attending emergency meetings with the Treasury to plead for more money to mitigate the effect of those cuts, which could mean some councils losing up to 20% of their funding by April 2011. Whether or not it is true that the Secretary of State has been lobbying the Treasury to come up with more cash, may I urge him to start listening to the concerns of local government and ensure that councils get a fair deal that stops the damage caused by the heaviest cuts falling in the first year?
Mr Pickles
I am sorry to say to the right hon. Lady that I have not necessarily found the Local Government Chronicle a very accurate reflection of what is going on in my Department, ripping read though it undoubtedly is. I must also admonish her in the mildest possible terms for using a partial quote. What I said was ridiculous was the idea that councils would face a 20% cut in their total spending ability in the first year.
The right hon. Lady has to recognise that she needs a policy. She knows, I know and the House knows that the Labour party Government were going to impose £5 billion-worth of cuts on local government, which would have been front-loaded.