Local Government Finance (England)

Jack Dromey Excerpts

Monday 24th February 2020 Commons Chamber

[Robert Jenrick]

My hon. Friend makes an important point. Knowing something of his constituency, I think it is the perfect example of a part of the country where there is great affluence, but also significant pockets of deprivation. We need to ensure that funding for local authorities that provide public services is based on the actual needs of the community, not a formula dreamed up many years ago.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Forty-one per cent. of children in Birmingham are growing up in poverty. Nearly half a million Birmingham citizens live in some of the most deprived areas of Britain. Birmingham is on track for £784 million-worth of cuts to its budget. Its workforce has been cut in half. Children’s centres and youth centres are closing, with catastrophic consequences for the city. The Secretary of State referred to the Local Government Association’s assessment of the fair funding review on social care funding. Is it not the case that its assessment is that the current direction of travel will see money channelled from high-need areas such as Birmingham to lower-need areas like Surrey and Buckinghamshire?

[Robert Jenrick]

That is not the view of the LGA. After the Labour party issued a press release suggesting something along those lines, the LGA gave the clarification that it is impossible to speculate because we have not published the figures; we have not published our consultation. So with great respect to the hon. Gentleman, he will have to wait until—[Interruption.] Well, it was the Labour group on the LGA. I am not going to base my views on the press releases of the LGA’s Labour politicians; I am going to base them on the reality of what we intend to bring forward in future.

On the serious point that the hon. Gentleman raises, we will be consulting in the spring, and that will address issues important issues such as that. I hope that he, Birmingham City Council and others who take an interest in these matters will participate in that consultation. We will of course listen to his views as we bring forward a better settlement that attempts to work for all parts of the country. The settlement that we are voting on today is a good settlement for Birmingham. It provides a 6.4% increase in funding, or £27 million additional funding, for social care.