Provisional Local Government Finance Settlement

Gareth Bacon Excerpts

Thursday 17th December 2020 Commons Chamber

[Robert Jenrick]

We all—certainly those of us on the Government Benches—would agree that we need an updated and fairer method for distributing public funds within local government. This year would have been the wrong time to bring that forward, I think. This is a one-year settlement in a period of almost unique instability in the sector. There might be an opportunity to do it next year, and my Department will work with the Treasury to review that. In the meantime, we have substantially increased the rural services delivery grant, taking that to £85 million, the highest amount to date, to support the delivery of public service in places such as Suffolk, where it is undoubtedly challenging and expensive.

[Gareth Bacon (Orpington) (Con)]

I thank my right hon. Friend for the generous settlement he has secured for 2021-22. My Orpington constituency is part of the London Borough of Bromley, which, like other local authorities, faces significant uncertainty about funding from 2022-23 onwards, dealing with rising demands and the new normal following the covid situation. This year, the NHS will receive a multi-year settlement. When can a commitment be made by the Government to provide three or four-year financial settlements, which will be crucial in providing value for money for residents and service users, for local government into the future?

[Robert Jenrick]

As I have said in response to other questions, it would clearly be beneficial for the sector for there to be a multi-year settlement. This was not the opportunity to do so. I do not think that this would have been the right time when there is so much instability and uncertainty surrounding the delivery of public services by local councils. Perhaps next year—I will certainly be making representations to the Chancellor to encourage him to do so.