Budget Resolutions and Economic Situation

Debate between Greg Clark and Mark Spencer

Monday 21st March 2016 Commons Chamber

[Greg Clark]

I do not know whether the hon. Gentleman was in the Chamber for the Budget statement. If he was, he will have seen that the Office for Budget Responsibility confirmed that we are on track to eliminate the deficit by the end of the Parliament and to have a surplus. He should spend a bit of time talking to his right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), who might provide the answer to why it has taken some time to reduce the deficit.

[Mark Spencer (Sherwood) (Con)]

Hundreds of thousands of small businesses are paying lots of those taxes. What assistance can the Secretary of State give to small businesses that are facing rate demands from local authorities?

[Greg Clark]

My hon. Friend draws attention to a very important point. We have doubled small business rate relief, benefiting businesses right across the country—the small businesses that are the backbone of our economy and that are contributing a record number of jobs, meaning that we have more people employed than ever before.

Local Government Finance (England)

Debate between Greg Clark and Mark Spencer

Wednesday 10th February 2016 Commons Chamber

[Greg Clark]

Of course there is, because the transitional relief is for the authorities that had a sharper reduction in the grant than others. Blackpool benefited to the tune of £3 million from the improvement of the grant. My hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) was wise enough to recognise that, and to recognise the difference it will make to the people of Blackpool, and the hon. Gentleman should do likewise.

[Mark Spencer (Sherwood) (Con)]

One of the most progressive things that the Secretary of State has done is to give local councils a four-year settlement, so that they can now view what their settlements will be into the future and not live from day to day not knowing what their budget settlement would be in the next year.

[Greg Clark]

My hon. Friend is right. This is one of the key requests that local government has made of central Government for many years, and it has constantly fallen on deaf ears. Councils right across the country, with all different kinds of party political control, have welcomed the fact that they will have the chance to look ahead and plan for the future.

--- Later in debate ---

[Greg Clark]

The hon. Lady makes two interesting points. On the first point, about the formula, I agree with her. It is too long since the underlying assessment of needs was updated—it is more than 10 years—and that is why I have proposed to go back to the drawing board and look at the needs and the resources available to each county. She is quite right on that point. On the second point, of course she is right: I recognise that the effect of a 2% precept is different in different parts of the country. The better care fund has been allocated differently precisely to take account of that. I would therefore have thought she welcomed that.

[Mark Spencer]

Does the Secretary of State recognise that councils that are progressive in supporting business and providing housing for their constituents will actually get a more generous income in future than those that do not support businesses coming into their area?

[Greg Clark]

My hon. Friend is absolutely right. It is of course better for councils to face in the direction of bringing successful businesses into their area and benefiting from that, rather than passing all such benefits up to the Exchequer.

A few moments ago, I mentioned the increasing elderly population, but, as I said to the hon. Member for Warrington North (Helen Jones), we have had a decade of significant demographic change without the needs-based formula—it determines how much a well-run council requires to deliver its services efficiently—being revised to reflect that change.

Local Government Finance

Debate between Greg Clark and Mark Spencer

Monday 8th February 2016 Commons Chamber

[Greg Clark]

As I said earlier, we have listened carefully. The leaders of my hon. Friend’s authorities have made representations, which we have listened to very seriously. I think they will be pleased with the response we have made through the settlement.

[Mark Spencer (Sherwood) (Con)]

The Secretary of State will be aware of the challenge faced by Nottinghamshire, which has been particularly compounded by the issues faced by former coalfield communities. Will he outline the improvements to the funding Nottinghamshire may receive? Will he also meet me to discuss plans for an enterprise zone at Thoresby colliery to enable the county council to find its own way in generating business rates in the future?

[Greg Clark]

My hon. Friend makes an excellent point. Attracting businesses to locate in an area is a sure-fire way of making sure that the resources available to councils continue to grow. I am grateful to him for his question, and I can confirm that Nottinghamshire will receive transitional grant funding of around £2 million next year, which I think will be welcomed across the county.