Oral Answers to Questions

Clive Betts Excerpts

Monday 15th December 2014 Commons Chamber

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

5. What assessment he has made of the implications for his policies of the report published by the National Audit Office entitled, “Financial Sustainability of Local Authorities 2014”, published in November 2014, HC 783; and if he will make a statement.

[Mr Clive Betts (Sheffield South East) (Lab)]

9. What assessment he has made of the implications for his policies of the report published by the National Audit Office entitled, “Financial Sustainability of Local Authorities 2014”, published in November 2014, HC 783; and if he will make a statement.

[Mr Steve Reed (Croydon North) (Lab)]

17. What assessment he has made of the implications for his policies of the report published by the National Audit Office entitled, “Financial Sustainability of Local Authorities 2014”, published in November 2014, HC 783; and if he will make a statement.

--- Later in debate ---

[Kris Hopkins]

The councils facing the most demands are receiving the most money and will continue to do so. It is exceptional that a great city such as Liverpool is standing up and recognising its potential and how it can get itself out of the financial difficulties it faces. The fact that it is confident about its city deal, which will result in 15,000 jobs and 16,000 houses, as a consequence of its leadership, and the fact that it is growing its business base and drawing down significant amounts of money to support local businesses, demonstrates that the community understands the direction to go in, even if the hon. Lady does not.

[Mr Betts]

Given that this is a report by the independent NAO, should the Minister not be at least a little concerned about some of its findings? It states:

“The Department has a limited understanding of the financial sustainability of local authorities and the extent to which they may be at risk of financial failure”

and

“does not monitor the impact of funding reductions on services in a coordinated way.”

Is that not a damning indictment? If the Government continue with these policies, some councils will get into serious financial difficulties, and they will get there with the Government apparently unaware and seemingly uninterested.

[Kris Hopkins]

No local authority has not been able to secure its budget, and each year, as dramas and challenges have arisen, they have faced them and dealt with them. Furthermore, we should not forget that about £2.1 billion is lost to error or fraud and that, despite the challenges, local authorities have managed to grow their reserve base to £21.2 billion.

--- Later in debate ---

[Brandon Lewis]

I thank my hon. Friend for standing up to make sure that the process is followed correctly. Obviously, the planning process is quasi-judicial and planning authorities must go through the full process. I will make sure that the chief planning officer keeps an eye on what is happening and ensures that the process is followed, and I will keep an eye on the case myself.

[Mr Clive Betts (Sheffield South East) (Lab)]

As I understand it, we will get an announcement later this week about the local government financial settlement for next year, which could involve a 10% reduction in local authority spending. That is as big a cut in one year as central Government Departments have faced throughout the whole of this Parliament. Will the Secretary of State, in the interests of transparency, give an assurance that he will come to this House and make an oral statement, rather than hide behind a written statement as he did last year?

[Mr Pickles]

The hon. Gentleman’s recollection is wrong: we made a statement from this Dispatch Box. We cannot anticipate what the business managers of this House will do. We will take the hon. Gentleman’s words into consideration.