Local Government Finance (England)

Ian Liddell-Grainger Excerpts

Wednesday 13th February 2013 Commons Chamber

[Brandon Lewis]

Yet again, an Opposition Member highlights the fact that they simply do not get it. This is about local authorities getting money for what they do; we are moving to a new way of working. Under the business rates scheme, they will get more money if they bring businesses and jobs in. If they build houses, they will get more money from the new homes bonus. The message to authorities that do not like it is that they should go out and build some houses. Two thirds of authorities are expected to gain, so the message to councils is clear: if they oppose the settlement, they oppose the opportunity for a brighter future. However, if they are self-reliant and ambitious, and work hard on behalf of local people, they will win the day.

This Government are keen to do everything they can to reward radical, forward- thinking councils, so today I am pleased to announce a new incentive for councils to join forces to bring management together, not just sharing the usual back-office functions and services that we hear of, but real front-line changes for the benefit of citizens as well. This is about looking at some of the excellent work done by great authorities and following in the footsteps of some—for example, the tri-borough initiative. Hammersmith and Fulham, Westminster, and Kensington and Chelsea are on track to save around £40 million by 2015-16. We are bringing in a new £9.2 million challenge award to help other councils to follow their lead.

I want councils such as West Somerset, which was mentioned on Monday—

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

May I thank my hon. Friend and the Secretary of State for making that possible? The House is well aware of the financial difficulties that we have there. A protocol was signed between Taunton Deane and West Somerset to alleviate the problems. This can now happen, at nil cost to either council. I am incredibly grateful on behalf of the people of West Somerset and the people of Taunton Deane. Thank you very much.

[Brandon Lewis]

I thank my hon. Friend for that intervention. I know that he has worked hard in Somerset to bring the authorities together and to get the right result. I hope that areas such as West Somerset will move forward and see this as an opportunity to help them to do the right thing. The same applies to other authorities as well, particularly small district authorities, which should be looking at bringing together their management to make sure that they are spending the money in the best way possible for their local residents.