Local Government Funding Settlement

Debate between Drew Hendry and James Brokenshire

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

I recognise the challenges and issues over the business rates retention pilots. Not everyone has been successful in relation to the pilots for 2019-20. We are piloting on the basis of 75%. That is on the basis of the new system that is being introduced in 2020 so that we can properly understand how it will operate in practice. I will certainly highlight to my hon. Friend some of the other issues in relation to, for example, the rural services grant, and how that will be beneficial to her local community, but, obviously, we will look at the representations that are received through this provisional settlement.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of his statement.

The Government’s austerity policies, as we have heard from the Labour Front-Bench spokesman this morning, have been deeply affecting councils in England for many years. I have been in this Chamber listening to debates about the struggles that they have had. Those austerity policies have also hit Scottish finances, but, in contrast, the Scottish National party Government continue to treat local authorities very fairly, despite the fact that the Government have cut the Scottish budget by £2 billion between 2010-11 and 2019-20. There are some warnings from Scotland on match funding and pilots, because this Government also continue to short change local authorities in Scotland directly in other ways by their failure to match the city deal funding from the Scottish Government by £387 million. It is especially critical at this time for Dundee, which faces the prospect of losing 850 Michelin jobs, as the Tay cities deal falls short because the Government have failed to match the Scottish Government’s spending by £50 million

Mitigating Tory costs for local authorities will cost the Scottish Government £435 million next year. On pilots, the extra administration costs of dealing with the hard-hearted and shambolic roll-out of universal credit has meant that Highland Council, a pilot area, has run up costs of more than £2.5 million, which is directly attributable to the costs of universal credit. The council leader and I have written numerous letters to the Secretary of State for Work and Pensions, and the matter has been raised with the Minister for Employment on numerous occasions. The questions are: when will the Secretary of State’s Government reimburse councils such as Highland Council and their tax payers and when will they live up to their responsibility for city deals and make good on their shortfalls?

[James Brokenshire]

I am grateful to the hon. Gentleman for his comments. I am pleased that he recognises the contribution that city deals have made in Scotland, the contribution that the UK Government are making in Scotland to ensure that that sense of growth and opportunity is felt very firmly, and how we contribute in that way to see that that is felt throughout our United Kingdom. I am sorry that, in some way, he does not fully appreciate and recognise the contribution that we are making. On the point that he makes more broadly in relation to universal credit, obviously, care and attention has been given to this matter by my colleagues, who I am sure will listen to the points that he makes. However, I say to him that the Scottish Government themselves have flexibility over welfare policy and over what they can do to deal with some of the issues and concerns that he has highlighted, and therefore that they have responsibility in that regard.