Local Government Finance

Debate between Derek Twigg and Grant Shapps

Wednesday 8th February 2012 Commons Chamber

[Grant Shapps]

I have given way a few times; I will make a little progress and then take further interventions.

In December 2010, we set out a two-year settlement, and it turns out that there is virtually no difference at all between the settlement that we are discussing today and the one that we set out back then. Despite the challenges, councils have expressed their gratitude for the stability that a two-year settlement provided. I am delighted that we were able to provide that sense of stability.

As with last year, we sought to deliver a fair, sustainable and progressive settlement. As we have just discussed, we have again focused resources on the most vulnerable communities, giving more weight to the level of need, from 73% to 83% within each council, and less weight to the per capita distribution.

[Derek Twigg (Halton) (Lab)]

rose—

[Grant Shapps]

When I give way to the hon. Gentleman, I hope very much that he will have listened to the passage that I have just read out, because I am sure that it will answer his question about need. We will give it a try.

[Derek Twigg]

My borough of Halton is the 19th worst hit of any authority in the country and it is among the top 30 most deprived authorities. How is that fair? Furthermore, why is the cut in the Chancellor’s borough of Cheshire East less than half that of Halton?

[Grant Shapps]

I see many former local government Ministers in the Chamber, including one or two on the Opposition Benches. They are well aware of a phenomenon that takes place after every provisional local government finance settlement: each authority comes in to explain why it is the worst affected in the country. That reality brings a wry smile to those who have done this job before.

To answer the hon. Gentleman’s point, I should say that his authority receives a 3.9% reduction in spending power. That is a touch over the average of 3.3% for this year, but it is by no means impossible and nowhere near the 8.8% cut that one or two authorities, including that in the constituency of my hon. Friend the Member for Great Yarmouth, are experiencing. As I explained to the hon. Gentleman, before he intervened not having listened to a word that was said, we have again given more weight to levels of need in each council and less weight—this is critical—to per capita distribution. I rather think that that goes to the exact point that the hon. Gentleman asked about.