Oral Answers to Questions

Clive Betts Excerpts

Monday 21st November 2022 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

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

The Local Government Association has calculated that councils are facing extra inflation costs of £2.5 billion this year and extra costs of £3.5 billion next year. If we look at the autumn statement, apart from social care there was no mention of any extra money whatsoever for local government. All that will come is a potential £0.6 billion if councils put up their council taxes by the 3%, aside from the social care precept. Surely £3.5 billion versus £0.6 billion means significant cuts to council services or the prospect, as the LGA has said, of some councils going bankrupt next year?

[Lee Rowley]

I am grateful to the hon. Gentleman, who brings a huge amount of experience from his Select Committee perspective, but the combination of what the Government have offered, which is a substantial increase in funds from the financial year 2023-24, plus a recognition that local councils can make decisions about their council tax bases, plus the usual efficiency savings that every large organisation should be making—[Interruption.] The Labour party seems to have a problem with local councils being as effective and efficient as they can, but I know most councils will respond to that challenge as they see fit.