Fire Service (Metropolitan Areas)

Debate between Lord Brady of Altrincham and Robert Neill

Wednesday 7th March 2012 Westminster Hall

[Robert Neill]

I will not give way very much, I am afraid, because I want to answer some of the points that have been made. With respect to the right hon. Gentleman, let us see how we get on.

There is no monopoly of concern for the fire service in either party or personal terms. Equally, we have to recognise that, as with all the public sector, the fire service must deal with the difficult and pressing financial situation that we inherited from the previous Government. I make no bones about that. We must therefore deal with difficult financial circumstances in a sensible fashion. There is no point in denying the need to reduce the deficit, and I do not think that most responsible people on any side do. It is not helpful to use the rather selective quotations that we have just heard or highly coloured scenarios. There are difficulties, which are being addressed by fire services through hard work, and I recognise that. It is equally important, however, to provide the full context, which may not have been picked up fully in the debate.

First, it is right, as has been observed, that back-loading is recognising the position of the fire service as an emergency service. It is worth noting that the reductions applied to fire and rescue authorities have been less than those applied to local authorities in general. No one likes to have to make reductions, but the inheritance is such that it cannot be avoided.

Secondly, it is important to realise that the much criticised formula is—I say it bluntly—essentially the formula that this Government inherited from Opposition Members when they were in government. It is a bit rich to hear criticisms of illogicality from hon. Members who were effectively the authors of the system—a system that the Government are proposing, in the coalition agreement, to change. Let me spell that out a little more clearly.

[Mr Brady]

Will my hon. Friend the Minister give way?

[Robert Neill]

May I make a little progress? I want to get this on the record, and then my hon. Friend will understand why.

It is important to recognise that, under the current system, the metropolitan authorities none the less receive far more protection from the damping system than any other type of authority. The Government took the view, despite arguments from some quarters to the contrary, that it was right to maintain the damping position. That has protected the metropolitan authorities more than anyone else. For example, West Midlands fire and rescue authority benefits from damping to the tune of £8.5 million in 2011-13. Overall, there is approximately a £26 million benefit to metropolitan fire authorities from floor damping protection in 2011-13.

--- Later in debate ---

[Robert Neill]

I am going to make these points before I start giving way to anyone.

That is more money than they would otherwise have had. The Government maintain that protection. Non-metropolitan areas contribute towards that protection.

It is also worth bearing in mind that the Government changed an element of the formula that we inherited to increase the relative needs weighting, which operates to the benefit of metropolitan authorities, because it reflects more of the needs that arise in urban areas. It targets resources on those authorities that are more dependent on central ground. It is not right to suggest that the Government have sought to target metropolitan areas. The operation of the formula is, I think, potentially flawed, which is why the Government, through the Localism Act 2011 and the Local Government Finance Bill, are moving away from the crude system of formula grant to assist in a business rate retention that will enable us to treat authorities fairly.

[Mr Brady]

rose—

[Robert Neill]

I will give way, once, to my hon. Friend.

[Mr Brady]

I am grateful to my hon. Friend the Minister. As a fellow Conservative Member who represents a metropolitan constituency, I would not expect him to be biased against metropolitan constituencies. Most of us have engaged in this debate—not just today, but before—in a very constructive way, and so has the Minister. Whatever the origin of the formula, I hope that he will accept that its implementation is resulting in particularly harsh cuts in metropolitan areas. I hope that he will give serious consideration to whether a more equitable arrangement can be found to spread the cuts more fairly around the country.

[Robert Neill]

I understand my hon. Friend, but it is right to say that, in 2012-13, formula grant average per head in metropolitan fire and rescue services is £26, as against £19 per head in non-metropolitan areas. We should not think that there are no pressures and fire risks in non-metropolitan areas.