Local Government Finance

Baroness Laing of Elderslie Excerpts

Wednesday 7th February 2018 Commons Chamber

[Madam Deputy Speaker (Mrs Eleanor Laing)]

We come now to the three motions on local government finance, which will be debated together.

I must inform the House that Mr Speaker has today certified the Report on Referendums Relating to Council Tax Increases (Alternative Notional Amounts) (England) as relating exclusively to England and within devolved legislative competence. All three motions are therefore subject to double majority voting: whole House and those representing constituencies in England only.

[The Secretary of State for Housing, Communities and Local Government (Sajid Javid)]

I beg to move,

That the Report on Local Government Finance (England) 2018–19 (HC 791), which was laid before this House on 5 February, be approved.

[Madam Deputy Speaker]

With this we shall consider the following motions:

That the Report on Referendums Relating to Council Tax Increases (Principles) (England) 2018–19 (HC 792), which was laid before this House on 5 February, be approved.

That the Report on Referendums Relating to Council Tax Increases (Alternative Notional Amounts) (England) 2018–19 (HC 790), which was laid before this House on 5 February, be approved.

[Sajid Javid]

Every day, local government delivers vital services for the communities they serve—services that many of us take for granted, provided by dedicated, often unsung councillors and officers in places that we are all proud to call home. As such, as I have said before, local government is the frontline of our democracy and deserves the resources it needs to do its job and to deliver truly world-class services. To that end, late last year we published a provisional settlement for funding of local authorities in England. We invited people to give their views on this via a formal consultation to which we have received almost 160 responses.

My Ministers and I have engaged extensively with the sector, with individual councils, with Members of Parliament, and with the Local Government Association and other representative groups, ensuring that we were available to speak to anyone who wanted to raise particular issues or to ask any questions. I pay tribute to my hon. Friend the Member for Nuneaton (Mr Jones) for his sterling work in this area, not just over this period but for the past three years. I thank the Under-Secretary of State, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), who recently joined the Department, for picking up the baton.

I am immensely grateful to everyone who has contributed to this consultation and our wider engagements with the sector.

--- Later in debate ---

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Conservative portfolio holder for finance on Stoke-on-Trent City Council says that it will lose £15 million of central Government grant over the next two years—that is Stoke-on-Trent with hyphens for the Secretary of State’s PPS, as he diligently searches his folder—but the Secretary of State will tell me that our revenue spending will be going up. Who is not telling me the truth? It cannot be the case that spending is going up when the portfolio holder tells me that the grant is being cut.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. Before the Secretary of State answers, I must say that interventions have to be short. A lot of people want to speak. What is unfair is if people make interventions and then leave, and other people have to sit for three hours waiting to speak. That is just not honourable. I appreciate that the hon. Gentleman is going to be here, but I just make the point about short interventions.

[Sajid Javid]

I can tell the hon. Gentleman that the core spending power for Stoke-on-Trent—with hyphens—is increasing by £3.5 million in the settlement. Indeed, the core spending power per dwelling for Stoke-on-Trent is higher than the average for the class. I hope he welcomes that.

The consultation on fairer funding closes on 12 March and I urge all those with a stake in the system to make their voices heard. We aim to introduce this new approach from 2020-21.

--- Later in debate ---

[Sajid Javid]

I can confirm that there will be a real-terms increase in resources for local government over a two-year period, rising from £44.3 billion in 2017-18 to £45.6 billion in 2019-20. I should clarify, however, that due to the additional £166 million that was announced this year, that is a real-terms increase over the two-year period rather than year on year.

We have listened to local authorities, and through this settlement we have delivered what they asked for, while at the same time keeping spending in check. We have delivered a real-terms increase in resources over the next two years, more freedoms and fairness, and greater stability and certainty for local authorities to plan and drive value for money. They, and the communities they serve, deserve no less. I commend the settlement to the House.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Before I call the Opposition spokesman, I warn hon. Members that, as is obvious, a great many people wish to speak this afternoon and there is limited time, so there will be an immediate time limit on Back-Bench speeches of seven minutes. Of course, that does not apply to Mr Jim McMahon.