Local Government Finances: London
Debate between Emma Lewell and David Simmonds(2 weeks, 1 day ago)
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David Simmonds
I think I will probably avoid descending too much into parochial politics, but it is important to recognise that I will have to pay the garden tax—I do not know whether the hon. Gentleman will—because I live in the London borough of Hillingdon.
All our local authorities are facing elements of those challenges, and are addressing them as best they can. London local authorities have demonstrated probably the greatest financial resilience of any group of local authorities in the country. We have seen a considerable increase in balances held by local authorities across the capital, but that masks significant variations. In particular, significant financial pressures are being created in outer London, partly because of the significant numbers of unfunded costs around things such as asylum and the long-term impact of the very rapid rise in rough sleeping. Set that alongside the fact that the long-standing structural underfunding leaves them less able to deal with the impact of a massive increase in national insurance contributions and the devastating impact of the Budget on the local economy and its ability to pay those taxes, all of which support local services. Let us take all those things into account, and come out of this with a new funding settlement for London. I ask the Minister to give us an undertaking that this will not be one of those settlements where a Government simply give with one hand and take with the other.
Emma Lewell (in the Chair)
I remind the Minister it would be decent of him to leave two minutes at the end for the Member leading the debate to wind up.