Oral Answers to Questions

Fiona Mactaggart Excerpts

Monday 17th January 2011 Commons Chamber

[The Minister for Housing and Local Government (Grant Shapps)]

My hon. Friend is absolutely right: that low record of house building was a disgrace. We need to do a range of different things, starting with the new homes bonus, followed by ensuring that there is affordable rent, that affordable homes are built, and that the planning system is liberated. There are also many measures in the Localism Bill, which we are debating later today. A whole raft of things needs to be done to get the situation fully under control. We look forward to the Opposition’s support for making that happen.

[Fiona Mactaggart (Slough) (Lab)]

A theme of Ministers’ answers has been the differential between the grants of different local authorities, with poorer authorities getting more than prosperous authorities. Is it a higher priority for Ministers to equalise those grants or to get rid of the inequality that has given rise to higher grants going to poorer areas?

[Mr Pickles]

We have increased equalisation. We have done three things. We changed the relative needs component from 73% to 83%; we introduced banded floors so that wealthier authorities have a greater percentage cut; and for those falling outside that, we introduced transitional relief. A new form of local government finance should, I think, start to concentrate on those areas of higher dependency, as far as the central grant is concerned, so that we can get them out of that dependency, increase growth and increase prosperity.