Local Government and Social Care Funding

Debate between Gareth Thomas and James Brokenshire

Wednesday 24th April 2019 Commons Chamber

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

Let me begin my speech in the same way as the hon. Member for Denton and Reddish (Andrew Gwynne), and underline the House’s complete condemnation of the appalling terrorist attacks in Sri Lanka and also in Northern Ireland.

The timing of the attack in Sri Lanka at Easter, when people were murdered at prayer, was utterly shocking, and has—rightly—been utterly condemned throughout the House. Our thoughts are firmly with the Sri Lankan community in the United Kingdom, and we send our prayers and condolences in the knowledge that so many people will have lost loved ones. Let me also say, as a former Northern Ireland Secretary, that the brutal murder of Lyra McKee was utterly shocking and disgusting, and that our thoughts and prayers are very firmly with her loved ones, her family and all who cared for her. What an incredible individual she was. At this time, as her funeral is under way, I know that the House will wish to send its thoughts, prayers and condolences to all who love her and all who care for her.

Let me now turn to the subject of today’s debate. Our local authorities and the people who serve them are delivering essential services and changing lives, and it is right that we help them to succeed. I pay tribute to all who work in our local councils up and down the country for the work that they do and the difference that they make to the lives of so many. As Secretary of State, I have made clear my support for local government, and my wish to enable councils to deliver benefits to the people whom they serve. I commend and support those councils, and I look forward to finding new ways in which services can be delivered most effectively, in the spirit of devolution, closer to the point at which they are received.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Let me say gently to the Secretary of State that what he has just said will be taken as weasel words in Harrow, in the context of a 97% reduction in revenue support grant. Can he offer any assurance that he has persuaded the Chancellor of the Exchequer, in the coming comprehensive spending review, to invest in local government health and social care?

[James Brokenshire]

Let me point out to the hon. Gentleman that this year we have given our local authorities access to £46.4 billion, a cash increase of 2.8% and a real-terms increase in funding. The settlement includes extra funds for local services, with a strong focus on support for some of our most vulnerable groups. It is part of a four-year settlement that has been accepted by 97% of local authorities, and gives so many areas access to substantially more funding than the least deprived. The average spending power per dwelling for the 10% most deprived authorities in 2019-20 is about 22% more than that for the least deprived.

Local Government Finance

Debate between Gareth Thomas and James Brokenshire

Tuesday 5th February 2019 Commons Chamber

[James Brokenshire]

I will take one more intervention and then I will seek to make some progress.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Harrow Council is not unique in having had most of its revenue support grant axed over the past seven years. What conversations is the Secretary of State having with the Chancellor of the Exchequer so that we can, as we hope, see a significant increase in that revenue support grant in the comprehensive spending review?

[James Brokenshire]

I am looking carefully at sustainability and issues relating to local government finance more broadly. I hope that the hon. Gentleman will recognise the change that is happening in the structure of local government finance and the move away from revenue support to the retention of business rates. In London, we have a 75% business rate retention pilot. We want to move away from the merry-go-round of money being collected so that it comes into central Government and then going back by way of a grant. We want to simplify the process.