Oral Answers to Questions

Debate between Greg Hands and Peter Heaton-Jones

Tuesday 1st December 2015 Commons Chamber

[Greg Hands]

To be precise, local government funding is being protected in cash terms. The £6.1 billion reduction in central Government grants is more than offset by a £6.3 billion increase in other sources of income. The hon. Lady mentions the northern powerhouse. The Chancellor announced yesterday the appointment of John Cridland as chairman of Transport for the North. We have also announced £200 million for Transport for the North over this Parliament to transform transport connectivity in the region, to introduce Oyster-style ticketing and to make sure the northern powerhouse becomes a reality.

[Peter Heaton-Jones (North Devon) (Con)]

I very much welcome the measures announced last week by the Chancellor to allow local government to keep receipts from business rates. My local authority, North Devon council, is one of the smaller ones so the receipts, actual and potential, will always be slightly less. Can my right hon. Friend give me an assurance that smaller local authorities such as mine will see the benefit from this measure?

[Greg Hands]

Yes. A consultation on changes to the local government finance system will be launched shortly, to be implemented in financial year 2016-17. We ought to be clear that the 2% increase in the precept to fund adult social care will be across the board, including rural areas, for councils that are meeting social care pressures.