Oral Answers to Questions Debate

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Oral Answers to Questions

Gavin Shuker Excerpts
Monday 7th April 2014

(10 years, 2 months ago)

Commons Chamber
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Stephen Williams Portrait Stephen Williams
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There are several questions wrapped up in one there. The spare room subsidy is not a tax, although clearly there are a range of opinions on that issue. The housing benefit bill had reached £23 billion by the time Labour left office and that was an unaffordable forward commitment for any party, including the hon. Lady’s, which promised in its last manifesto to tackle overspending on housing benefit. All taxpayers would want to make sure that that money is spent wisely and not on subsidising spare bedrooms for people who do not need them.

Gavin Shuker Portrait Gavin Shuker (Luton South) (Lab/Co-op)
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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.

Emma Lewell-Buck Portrait Mrs Emma Lewell-Buck (South Shields) (Lab)
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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.

Brandon Lewis Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
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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.

Gavin Shuker Portrait Gavin Shuker
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The Minister likes to talk about these changes in terms of benefiting councils, but the reality on the ground is that many local authorities find themselves losing out. His focus on spending power per dwelling hides the fact that many places have large families living in large occupancy dwellings. Will he explain why Luton borough council is having its spending power cut by a half?

Brandon Lewis Portrait Brandon Lewis
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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.