Local Government Finance Settlement

Chris White Excerpts

Thursday 15th December 2016 Commons Chamber

[Sajid Javid]

Although the hon. Lady is absolutely right that the change we have announced today is for the next tax year—as she rightly indicated, it begins in April—and the following one, I know it is hugely welcome for many local authorities because it allows them to plan. Those were the two particular years for which local authorities felt they had the biggest gap because, as a result of the way in which the better care fund was profiled, the £1.5 billion in full does not kick in until towards the end of this Parliament. The planning that can now be done, and the certainty that that will provide, will immediately help to allay some concerns in local areas. In her area of Wirral, the precept increase for 2017-18, starting in April, will raise £1.4 million; in the following year it will be £8.3 million. That will make a considerable difference.

[Chris White (Warwick and Leamington) (Con)]

Does the Secretary of State agree that improving efficiencies must be a priority when considering the financial settlement? Will he outline any proposed measures to encourage local authorities to move from a two-tier structure to a unitary one?

[Sajid Javid]

My hon. Friend’s general point about efficiencies is absolutely correct. That is why I have today praised those local authorities that have shown they can spend less money and in many cases improve public services. I have also talked about the work my Department and the Department of Health are doing together on the integration of adult social care and promoting that more locally.

My hon. Friend asked specifically about the structure of local authorities. The Government are very responsive to that. We will listen to local authorities. A number have started coming forward with plans, and we will look at each one of those very carefully.