Local Government Finance

David Drew Excerpts

Wednesday 7th February 2018 Commons Chamber

[Sajid Javid]

Perhaps the hon. Gentleman can draw some comfort from my words in due course.

This work, with the feedback that we have received over the past few weeks, has informed the final settlement that we are unveiling today. It is part of a four-year settlement that gives English councils access to over £200 billion in funding in the five years to 2020. It gives them greater freedom and flexibility over the money that they raise, in recognition of the fact that no one knows their local areas, and the opportunities, challenges and pressures that they face, better than the councils who serve them. It strikes a balance between relieving growing pressure on local government while ensuring that hard-pressed taxpayers do not face ever-increasing bills.

[Dr David Drew (Stroud) (Lab/Co-op)]

Could the Secretary of State explain why Stroud District Council is the only council in Gloucestershire that has no revenue support grant promised under these proposals? Worse than that, the other three district councils in Gloucestershire get some money under the rural services delivery grant, yet Stroud gets nothing. Why does he think that is fair, and how can he defend it?

[Sajid Javid]

The hon. Gentleman, like many colleagues in the Chamber, is served both by district councils and county councils, all providing services for his constituents. The whole picture should be taken together. He will know that his county is seeing, for example, an increase of some £10.8 million to provide some very important services. Also importantly for Gloucestershire, including the district councils as much as the county council, the Gloucester business rates pool is part of the 100% pilot, which it estimates will lead to further additional funding this year of about £10 million. I hope that that helps to reassure him.

The settlement comes in the third year of a four-year deal that was accepted by 97% of councils in return for publishing efficiency plans. This gives the certainty and stability that they need to plan for the future. Many local authorities have done impressive work to deliver better value for money and are setting an example for other parts of the public sector. We are keen to continue to work with the sector to increase transparency and to share best practice so that councils can deliver increased efficiency over the coming years and transform services.

In all, the settlement answers calls from councils over many years for greater control over the money that they raise and the tools to make this money go further. This is the approach that we have taken across the board, listening to local authorities and responding to what we hear.