Local Government Finance (England)

Debate between Jack Dromey and Steve Reed

Wednesday 10th February 2016 Commons Chamber

[Mr Reed]

We need a funding formula that is based on need. The Tories have had six years to give us that and they clearly have not done it.

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

Birmingham has been hit by the biggest cuts in local government history, with cuts of £90 million next year. The city put a powerful case for a fair deal and transitional funding. How can it be right that Birmingham got not one penny in transitional funding, but Surrey got £12 million and Cheshire East, in the Chancellor of the Exchequer’s constituency, got £3 million? It is simply not fair.

[Mr Reed]

My hon. Friend makes an important point. Actually, Surrey got more than £12 million. Surrey, which of course is where the Secretary of State just happens to be an MP, gets the most of any council. [Interruption.] The council next door to where the right hon. Gentleman happens to be an MP gets the most, with £24 million. Hampshire gets £19 million, Hertfordshire gets £14 million and the Prime Minister’s campaigning mum—admirable woman that she is—will be very pleased to see that Oxfordshire gets £9 million.

I am not criticising what those councils are getting. They did not deserve the scale of the cuts the Government had lined up for them, but then neither do Middlesbrough, Knowsley, Hull, Liverpool, Manchester, Birmingham, Darlington and all the other more deprived areas that have suffered far deeper cuts in the past six years but have been offered absolutely no help whatever.