Jack Dromey
Main Page: Jack Dromey (Labour - Birmingham, Erdington)
Mrs Emma Lewell-Buck (South Shields) (Lab)
4. What assessment he has made of the effectiveness of the local government grant formula in directing funding to areas of need.
Jack Dromey (Birmingham, Erdington) (Lab)
15. What assessment he has made of the effectiveness of the local government grant formula in directing funding to areas of need.
The Minister for Communities and Resilience (Mr Mark Francois)
Councils facing the highest demand for services receive substantially more funding, including through the grant formula. In addition, with the introduction of business rates retention in 2013-14 there has been a deliberate shift away from keeping authorities dependent on grant and towards providing councils with the tools and incentives they need to grow their local economies and promote sustainable house building.
Mr Francois
The north-east and the north-west still have the highest spending power per household after London. The average spending power per household in the north-east is £2,313, and the figure for the north-west is £2,250. Those figures are both higher than the England—excluding Greater London Authority—average of £2,086. Spending power per household in the South Tyneside area will be £2,402 in 2015-16, which is more than the England—excluding Greater London Authority—average and also more than the metropolitan area average of £2,226, so I do believe that adequate resources are being provided.
Jack Dromey
The Secretary of State is a decent man with an open mind who has often spoken of the importance of fairness, so how does he explain the fact that while the great city of Birmingham, which has high need, has had a £700 million budget cut equating to £2,000 per household, the leafy shire area of Cheshire East, in which the Chancellor of the Exchequer’s constituency is located, has had an increase in spending power of 2.6%? If fairness is to mean anything, it must lie at the heart of the funding of local government. Fairness should be based on need.
Mr Francois
I thank the hon. Gentleman for his kind words about my boss. I wonder whether the hon. Gentleman still agrees with what he told the Municipal Journal on 29 September 2010:
“Labour was wrong in 1997 to downgrade the role of local government”.
We are not doing that; we are trying to upgrade the role of local government, and I remind him that spending power per household for the Birmingham area will be £2,554 in 2015-16, which is more than the England average excluding the GLA, more than the metropolitan area average and more than the Cheshire East average of £1,851.
Mr Francois
We have to look at the context. The cost of public sector pensions increased by about a third in the 10 years to 2009, and reform was necessary to ensure a fair deal for firefighters and taxpayers alike. Firefighters’ pensions remain generous. A firefighter who earns £29,000 and retires at 60 after a full career will get about £19,000 a year pension, rising to £26,000 with the state pension. It is also worth remembering that the pension age of 60 is the same as it is for the police and, indeed, for the armed forces.
Jack Dromey (Birmingham, Erdington) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Communities and Local Government (Greg Clark)
May I start this session of topical questions by paying tribute to my right hon. Friend the Member for Brentwood and Ongar (Sir Eric Pickles) for his five successful years in leading the Department?
Building on my right hon. Friend’s achievements, my commitments and those of my excellent team are, among other things, to continue to increase the supply of housing so that people can achieve their aspiration of a home of their own; to decentralise powers and budgets to local communities through the Cities and Local Government Devolution Bill; and to maintain an ongoing commitment to turning lives around through the troubled families programme. This week, the Prime Minister announced that almost 117,000 families have so far been helped.
Jack Dromey
With the biggest housing crisis in a generation and an acute shortage of affordable and social housing, would that the Government’s right-to-buy Bill were buried and not brought forward, because it will make that bad situation worse. On the timetable for the Bill, the Prime Minister promised that it would be introduced in the Government’s first 100 days. Can the Secretary of State confirm that it will be brought before Parliament before the summer recess?
Greg Clark
The hon. Gentleman is a former shadow housing Minister, and many of his colleagues are having occasion to reflect on Labour’s failure to offer any substantive policies; he should take his share of the blame. He should be clear from my previous answer that the right-to-buy policy, in relation to council houses, has increased the supply of housing. Whether on increasing housing supply or increasing aspiration, he should get behind our policy. The Bill was in the Queen’s Speech and it will be introduced very shortly.