Local Government Funding

George Howarth Excerpts

Tuesday 30th November 2010 Westminster Hall

[Mr Watts]

It is very difficult to see any fairness in the system so far. We know that more cuts are on the way. We hope that they will be introduced more fairly and will take into account the unfairness of the last set of cuts, which hit the most deprived communities.

[Mr George Howarth (Knowsley) (Lab)]

My hon. Friend is being generous in giving way. Does he agree that this is not just a question of fairness? It is becoming increasingly apparent that there is a built-in unfairness in the system. Some authorities, of which Knowsley is one, as part of the SIGOMA group of local authorities, are likely to be disproportionately affected. Does he agree that in those circumstances it is important that damping be kept in place, so that the losses we will experience can to some extent be mitigated?

[Mr Watts]

We would hope, in relation to any massive cuts, that some damping would be introduced to ensure that local authorities do not face the full loss of grant, as they did under the previous Tory Government, who cut millions of pounds from local authorities overnight. The previous Labour Government, when they made changes, put in mechanisms to ensure that local authorities did not suffer in the same way as they had done with the Tory cuts. I hope that the situation will be fairer, that there will be some damping and that local authorities will have an opportunity to adjust their budgets.