Oral Answers to Questions
Debate between David Burrowes and Brandon Lewis
Brandon Lewis
I gently say to the right hon. Gentleman that Howard Sinclair, the chief executive of St Mungo’s Broadway, has said:
“This is a sensible and reasoned decision by the government”.
The chief executive of YMCA England has said that the Government
“has taken appropriate action to protect supported housing.”
We have decided to delay things for a year while we work with the sector to make sure we have a good and well-protected sector in future.
Mr David Burrowes (Enfield, Southgate) (Con)
I welcome the Government’s review of supported housing and their commitment to preventing homelessness, both financially in the autumn statement and Budget, and in a likely statutory duty to prevent homelessness. Does that progress not fly in the face of putting a local housing allowance cap on supported housing, which in effect would pull the rug from under very vulnerable tenants who the Government are supporting at the moment?
Brandon Lewis
My hon. Friend rightly points out that the spending review put in £400 million of funding to deliver 8,000 new specialist affordable homes. As I said, the delay of a year is to work with the sector, and the review that we have commissioned jointly with the Department for Work and Pensions will be published shortly. We have made it clear from the beginning that we will ensure that the most vulnerable people are protected and supported through all the reforms.
Local Government Finance
Debate between David Burrowes and Brandon Lewis(10 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Brandon Lewis
My hon. Friend has made that point about rural areas with great passion on a number of occasions, and I will deal with it in a moment.
After years of doffing their caps to central Government and talking down their areas to scrape together more handouts, councils can now embrace the autonomy that this settlement gives them. Councils have risen to the challenge of delivering more for less, but local government spending still accounts for a quarter of all public spending. In the current year, it will spend £117 billion, which is £3 billion more than last year. That makes the local government bill bigger than that of the NHS and double the defence budget. It is therefore necessary for councils to continue to find sensible savings.
Mr David Burrowes (Enfield, Southgate) (Con)
Speaking of fairness, I believe that it is fair to the hard-pressed taxpayers in my constituency that their council tax has been frozen, not least because the Government have given us more than £7 million to enable that to happen. That funding was opposed by the Labour opposition.
Brandon Lewis
My hon. Friend makes a good point. It is good to see councils across the country freezing council tax and moving away from the situation that we had under the last Government, when it roughly doubled.
Brandon Lewis
I refer the hon. Gentleman to the work showing not only that local authorities are coping well, but that good ones are improving front-line services.
Mr Burrowes
My hon. Friend mentioned the legacy from Labour. He will know, not least from Great Yarmouth, that damping is an issue for Enfield. Damping poses a structural challenge for places such as Enfield, with unmet need that is embedded year after year, and it does not reflect the growing population and deprivation issues.
Brandon Lewis
I thank my hon. Friend for raising the important issue of damping. I know that hon. Members have differing views about it, but it means that we can have stability in the baseline. It also recognises need as we move towards a new system, the business rates retention scheme, which I will turn to in a few moments.
Councils can become masters of their own destiny in other ways. The new homes bonus rewards councils that have increased the local housing supply, helping them to meet the needs of a growing community. In 2014-15, the new homes bonus will be worth £916 million, which is money for councils to spend as they see fit. Those authorities that have had an increase in their funding—Members have mentioned some of them—have had that increase because they have done the right thing: they have built more houses, and they have got more money for doing so.
The business rates retention scheme has revolutionised the potential to grow local economies, and has given councils a hand in their success. Under the previous Government, councils did not get to see that money—£11 billion in business rates—that they can now retain. Councils sit on a total of £230 billion of assets, and we must do more to turn those assets into better services for local people.