Local Government Finance

Graham Allen Excerpts

Thursday 17th December 2015 Commons Chamber

[Greg Clark]

I pay tribute to my hon. Friend, who has been a persistent and effective campaigner, drawing attention to the special costs that the most sparse rural authorities face in providing services. We have gone a long way, based on the evidence we have seen, to address those needs. I and my colleagues will be happy to meet my hon. Friend and other colleagues to discuss how it will work out in practice.

[Mr Graham Allen (Nottingham North) (Lab)]

Does the Secretary of State accept that the paradox of the statement is exemplified by my own city council, which has had a reduction of nearly 50% in its central Government grant since 2010, yet also a massive increase in responsibilities? Pretending that adult social care can be picked up by a 2% increase in council tax is obviously nonsense. He realises, I am sure, that to resolve his dilemma, he should enable—as every other western democracy has—local authorities throughout England to retain and raise funds of their own so that they can effectively no longer be an agent of central Government. That, surely, is the difference between devolution and decentralisation.

[Greg Clark]

The hon. Gentleman will know more than most that simply looking at central Government grant in an age in which local councils, at their own request and following their own campaign, are increasingly in charge of their own resources, is not the right way to consider the issue. We should look at the total resources available, including the business rate revenues, in respect of which Nottingham and Nottinghamshire authorities are doing very well, rightly attracting more businesses and expanding businesses. That is a buoyant source of income for his city and his county.