Local Government Finance (Rural Authorities)

Debate between Chris Williamson and Helen Goodman

Monday 11th February 2013 Commons Chamber

[Chris Williamson]

The complexity of local government funding is certainly an issue, but when the hon. Gentleman refers to an historic problem, I remind him that in every year of the Labour Government, local government saw growth in its budgets. Only since the election of the Conservative-Liberal coalition have we seen a huge reduction in funding for local government. Of course we must argue for a fair share for rural authorities, but that should not be achieved at the expense of urban authorities.

[Helen Goodman]

Does my hon. Friend agree with the contention that the freeze only really helps authorities in the south-east with high house prices? Is he aware that of the 17 authorities with projected increases in spending power for 2014-15—the year after the £8.5 million one-off grant—no fewer than 14 are in the London commuter belt, while rural areas feature heavily among those facing the biggest reductions?

[Chris Williamson]

My hon. Friend draws attention to a real problem with the council tax freeze grant, as have Government Members this evening. Local authorities of every political persuasion have seen through the Secretary of State’s wheeze. For many local authorities, taking the grant would clearly create significant problems down the road. That is why we are seeing Conservative, Liberal Democrat and Labour authorities refusing to take the grant, for very good reasons.

We have heard contributions this evening from my hon. Friend the Member for Bishop Auckland (Helen Goodman), who we have just heard from again, and the hon. Member for Beverley and Holderness (Mr Stuart), who spoke passionately about the need for a fairer settlement—although, rather paradoxically, he also said he supported the Government’s austerity programme. It seems to me that he cannot have it both ways.