Oral Answers to Questions
Debate between Chuka Umunna and Lord Stunell
The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
The local government settlement is a fair outcome in very difficult circumstances—those circumstances being that we are borrowing £400 million every day to plug the gap left by Labour. We have worked hard to get equity between local authorities, giving proper attention to both their level of dependency on Government support and their local resources. That is why we have transferred the needs-based element from 73% to 83% of the formula grant and introduced the banded floors. As a result, for every pound per resident of formula grant that goes to the least dependent authority in London—Richmond—Lambeth will get £4.86, which is almost five times as much per resident as the least dependent authority.
As far as equity for local taxpayers goes, the council tax freeze will provide £2.4 million to Lambeth this coming year.
Mr Umunna
Of course, the fact is that the most deprived single-tier local authorities are seeing their spending power reduced by nearly four times the amount of the least deprived local authorities. For example, Lambeth—the Minister omitted this point—is having to make just under £40 million-worth of cuts to services in my area, including to Lambeth senior citizens day centre in Brixton Hill. That centre provides food and a place to go for—[Interruption.]
Andrew Stunell
According to Lambeth council’s own website, it is reducing its front-line service provision by £1 million, but I draw the House’s attention to the fact that it is also increasing its reserves from £83 million last year to £93 million this year. Perhaps the question about equity would be better directed at the council than at us.