Provisional Local Government Finance Settlement

Debbie Abrahams Excerpts

Thursday 17th December 2020 Commons Chamber

[Robert Jenrick]

I will happily write to my hon. Friend with the full details with respect to Blaby District Council. Across the country, we have announced today that we will be doing a further year of the new homes bonus, backed by over £600 million of Government money, but we will also be consulting on the future of the new homes bonus. The new homes bonus is an important part of the finances of many local councils, but it is widely perceived to be a poor incentive for councils to get on and build homes, so the consultation will ask how we can develop a new incentive that supports those councils that need to build homes and those that have high ambitions to get on and build. Fortunately for my hon. Friend, his council and those that surround it in Leicestershire are among the most ambitious councils in the country when it comes to house building.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab) [V]]

Like others, I am very concerned that the increase in local authority budgets is largely predicated on an assumption of a rise in council tax and the social care precept. This tax is highly inappropriate in the current circumstances and fails to recognise the different needs of local economies such as mine in Oldham and Saddleworth. To be frank, it is just not good enough for the Secretary of State to say that it is up to local authorities what they do. When is he going to reimburse Oldham Council for its covid-associated deficit, forecast at more than £10 million in 2021-22? What will he do to fulfil the Conservative manifesto pledge to level up regarding council funding, given the disproportionate cuts that northern local authorities have faced over the last 10 years?

[Robert Jenrick]

As I said in answer to the hon. Member for Bedford (Mohammad Yasin), it would not be right for me to say publicly how much a local council has self-reported as having spent on covid-19 expenditure, but across the whole country, we have more than compensated local councils for the costs they have incurred. We have provided Oldham with £33.5 million so far. In addition, it will be making use of the sales, fees and charges scheme, which provides 75p in the pound, and the council tax and business rates scheme that we have announced today, which does the same thing, so I rather suspect that Oldham will receive as much money as it requires over the course of the year. The hon. Lady did not welcome the fact that Oldham is part of the towns fund—I look forward to seeing the proposals that it brings forward—or that we provided £1 million to Oldham earlier in the year, so that it can get on and take forward some of those exciting ideas as soon as possible.