Local Government Finance Debate

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Local Government Finance

Catherine McKinnell Excerpts
Wednesday 18th December 2013

(10 years, 5 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Brandon Lewis Portrait Brandon Lewis
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My hon. Friend makes a good point. This Conservative coalition Government have done what they can to ensure that a council tax freeze is available to every resident in the country, and we are proud of that. Any authority that is looking to put up its council tax and to penalise local residents by charging them more should have the courage to hold a referendum and let the public decide.

Catherine McKinnell Portrait Catherine McKinnell (Newcastle upon Tyne North) (Lab)
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The Minister knows that quoting spending power levels completely ignores the different challenges that areas such as Newcastle and Liverpool are facing. On the new homes bonus, will he explain the fairness of the north-east contributing £42.3 million to the pot while receiving only £29.3 million in return?

Brandon Lewis Portrait Brandon Lewis
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Actually, the spending power formula goes in completely the opposite direction, in that it represents exactly what affects residents. Calculating spending power per dwelling takes account of the entire pot of money in a local authority area. The hon. Lady is quite right to say that Newcastle has a spending power of almost £2,500 a head compared with other areas that have closer to £1,500. The formula does reflect need. With the new homes bonus, the more houses people build, the more money they will get.