Local Government Finance (Rural Authorities)

Duncan Hames Excerpts

Monday 11th February 2013 Commons Chamber

[Chris Williamson]

I remind the hon. Gentleman that there was a worldwide banking crisis and that it was Margaret Thatcher who deregulated the financial markets. The problems can be traced back to the big bang and the deregulation of those financial markets.

[Duncan Hames (Chippenham) (LD)]

rose—

[Chris Williamson]

I will give way to the hon. Gentleman in a moment.

What I regret is the Secretary of State letting down or betraying local government. Again, it is important to understand that it was this Secretary of State who volunteered for the biggest single reduction in Government funding of every Government Department. Government Members might not like to hear that, but that is the truth of the matter. If the Secretary of State had stood up for local government, local councils would not be in the parlous situation in which they find themselves.

[Duncan Hames]

rose—

[Chris Williamson]

It is clear that the rural authorities are by no means the only authorities to have been dealt an almighty body blow by this Government—far from it. Councils in the north, councils in the south, councils in the east, councils in the west, county councils, district councils, borough councils, metropolitan councils, unitary councils, councils that serve urban areas and councils that serve rural areas: all have suffered at the hands of this Secretary of State. As I have already said, if he had done his job properly, today’s debate would not have been necessary.

[Duncan Hames]

I thank the hon. Gentleman for eventually giving way. Of course, his Government reduced the number of councils in Wiltshire and Cornwall that were underfunded in rural areas by abolishing them. Given that he has not found any alternative source for making the distribution of funds fairer, is the best he can offer to councils in Somerset and Devon the same prescription as his Government dealt those rural councils in Wiltshire and Cornwall?

[Chris Williamson]

Not at all. We are not making that point in any way, shape or form. Indeed, my right hon. Friend the shadow Secretary of State for Communities and Local Government has made it clear that Labour’s policy is to give a fair deal, a new deal, for local government and to allow local government on the ground to determine the shape of local government, rather than it being imposed from the top. The local authorities to which the hon. Gentleman refers wanted the local changes brought about by the Secretary of State at that time.