Emma Lewell-Buck
Main Page: Emma Lewell-Buck (Labour - South Shields)
Gavin Shuker (Luton South) (Lab/Co-op)
3. What assessment he has made of the effect on local authorities of recent changes in the proportion of local authority funding that comes from revenue support grants.
Mrs Emma Lewell-Buck (South Shields) (Lab)
7. What assessment he has made of the effect on local authorities of recent changes in the proportion of local authority funding that comes from revenue support grants.
The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
Revenue support grant is provided to councils in addition to retained business rates. Authorities now keep nearly £11 billion in business rates, and a share of growth in business rates in their area. This provides a direct financial incentive to help deliver growth, in contrast to the old system.
Brandon Lewis
Let us look at the hon. Gentleman’s local authority directly. Average spending power per household in this country is £2,089 whereas in Luton it is £2,211. That is above the average, so I suggest to the residents of Luton that they elect a council that can run things efficiently and effectively.
Mrs Lewell-Buck
Despite having higher levels of deprivation, local authorities such as my own are seeing deeper cuts than those in the well-off areas. By 2016, spending per household in the north-east will have fallen by £296 compared with the average of £233. Does the Minister not recognise that that will mean that existing inequalities between the regions will be even worse?
Brandon Lewis
I dispute that directly, because the hon. Lady’s local authority’s spending power is £2,355 per household per year, which is well above the national average of £2,089, so it comes from a much higher position which recognises its local needs.