Oral Answers to Questions
Debate between Derek Twigg and Lord Pickles
Mr Pickles
I am very grateful to the hon. Lady for giving me the opportunity to say this. Labour’s policy has been described as robbing Peter to pay Paul. It has been attacked by the Institute of Directors, which says that the main corporation tax rate is paid by medium-sized businesses. As the hon. Lady is concerned about SMEs, she should not forget that the “M” stands for medium-sized businesses. The institute says that it is a dangerous move for Labour to risk our business-friendly environment in such a way.
Derek Twigg (Halton) (Lab)
Business rates are an important part of encouraging and maintaining shops. One problem is where town centres, such as Runcorn in my constituency, need to be reconfigured. The borough council needs extra resources to be able to do that. What are the Government doing to help local authorities reconfigure town centres and therefore to promote more shops?
Mr Pickles
As my hon. Friend the Planning Minister has reminded me, we are in the middle of a consultation to help with regard to the designation of certain planning use classes. If the hon. Gentleman wants to invite his council to make a contribution to that, it would be most welcome.
Local Government Finance
Debate between Derek Twigg and Lord Pickles
Mr Pickles
My hon. Friend will recall that that grant comes from the working neighbourhoods fund. When he and I were looking at that a couple of years ago, we found that the departing Labour Government had left no money to pay for it. We thought that that was completely unacceptable, so we created a transitional grant to help with the process. I am delighted to say that we are now down to about seven authorities that need such help. We are saying to those authorities, “You can’t expect the rest of local government to pay for you not doing the right thing. Provided that you give an undertaking that you will look towards better corporate government, joint working and getting your base down, we will give you the money next year, but if you haven’t made progress by the end of the year, you won’t get anything the following year.” It is completely unfair for local government to subsidise people who are being inefficient.
Derek Twigg (Halton) (Lab)
If what the Secretary of State is doing is about being fair, why has Halton borough council, which covers the second most deprived area in the country, had a cut per head of twice that in the affluent Tory council in Cheshire East? Is this not about transferring money away from Labour councils and towards Tory councils?
Mr Pickles
No, that has not happened. There has been a significant shift away from Conservative authorities and towards Labour authorities. I note that the loss of spending power in the hon. Gentleman’s area is 1.8%, which is not materially greater than the national average, and that it is getting £2,416 per household. That does not suggest that a significant amount of money has gone away from his authority.
Local Government Finance
Debate between Derek Twigg and Lord Pickles
Mr Pickles
My hon. Friend should be pleased to know that Devon faces a cut of 1.8% in its spending. One reason for that, as in other local authorities, is that social services are offered a degree of protection depending on the number of elderly people who have chosen to live there. However, some of the districts have to rely on the full amount in terms of the guarantee of no more than 8.9%.
Derek Twigg (Halton) (Lab)
The Secretary of State lost his train of thought this morning on the “Today” programme, which we can well understand given his disgraceful statement to the House this afternoon, but may I ask him a specific question? In the banding annex of the local government finance report, Dorset is in band 4, but he said that it will receive a slight increase in funding, or at least no cut. Will Halton, which is in band 1—the most deprived band—receive an increase in funding? It cannot be fair for somewhere in band 4 to get a better settlement than somewhere in band 1.