Funding for Local Authorities

Graeme Morrice Excerpts

Thursday 10th October 2013 Commons Chamber

[Neil Parish]

I know that my hon. Friend represents his rural constituency in Shropshire very well, and he realises that sparsity of population, distances, small schools and so on make services much more expensive to deliver. The irony of his question is that the Government have already done that work. They have already investigated the situation and come up with a policy to transfer those funds. That is what is so frustrating; they will not carry on with the process. That is why I am particularly keen to get them to look at that again and continue the great work that they have already done. That is all I ask. I am not asking for a new wheel; I am just asking for the present wheel to be rolled a bit further.

[Graeme Morrice (Livingston) (Lab)]

The hon. Gentleman is making some sensible and considered points, but does he agree that the unfairness in the system—I know the grant system is incredibly complicated—is exacerbated by the existing plan to top-slice and hold back grant, such as the new homes bonus? That simply amplifies the problems for areas that are already disadvantaged, such as many of the local authorities in my region, including Durham county council and Gateshead metropolitan borough council.

[Neil Parish]

I do not necessarily want to get into a debate on how the new finance will be handled. Retaining the business rates and the new homes bonus are all part of it. A system where it is shared more equally across all authorities in the future may be one answer, but I do not want to argue with all the Government’s policies. I just want them to carry on with the very sensible policies that they had. [Interruption] Did my hon. Friend the Member for Beckenham (Bob Stewart) want to intervene?