Local Government Finance Debate

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Local Government Finance

David Heath Excerpts
Wednesday 18th December 2013

(10 years, 5 months ago)

Commons Chamber
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Brandon Lewis Portrait Brandon Lewis
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If we look at what has happened, we find that even the independent report last year showed that the settlement was fair as between north and south, urban and rural—and we would argue that the same applies this year. It is true that, thanks to the mess created by the last Government, we have had to cut back. Local government accounts for a quarter of all public spending, so it has its part to play. The last Labour Chancellor outlined £52 billion-worth of cuts, which the Opposition have not outlined yet, but they have opposed every single change that this Government have made. That is not a credible position, so I take no lectures from the hon. Gentleman. I suggest that he go back to his now Labour-controlled authority and ask it to do what the last Conservative authority was doing, which was managing better so that local taxpayers do not have to be punished by increased council tax. It should freeze its council tax, as the Conservative-led coalition Government have done, and make things better for its local residents.

David Heath Portrait Mr David Heath (Somerton and Frome) (LD)
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A significant group of authorities, mainly in rural areas, have been historically underfunded. The Government have recognised that, but does the Minister understand that improving the distribution formula does no good whatever if a damping mechanism is then imposed, which removes the benefit?

Brandon Lewis Portrait Brandon Lewis
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I understand the hon. Gentleman’s point. Last year, damping was brought in to avoid volatility in the system. We put in extra grant—the money we are rolling in this year—on top of that, so it is not affected by the issue that the hon. Gentleman raised.