Local Government Finance

James Morris Excerpts

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

I wish to make it absolutely clear that obviously, authorities that are more dependent on the grant will feel the effects of any reduction. We have moved the relative needs figure to 83%, and introduced the banded floors and the transitional grant, to protect those authorities. Had we not taken those decisions, and had we applied the system that the Labour party did, the effects on those communities would indeed have been great.

[James Morris (Halesowen and Rowley Regis) (Con)]

I welcome the Secretary of State’s announcement today. Is it not the case that across the country, there are lots of examples of local authorities working in partnership to reduce costs, sometimes across political divides? Will he outline how he can encourage local authorities along the line of more collaborative behaviour?

[Mr Pickles]

I am pleased to report that a number of authorities have gone some considerable way to find savings that can be made. We have already talked about Coventry, and Hammersmith and Fulham, Kensington and Chelsea and Westminster have started to join together to improve things. Birmingham has managed to save £130 million by outsourcing and Suffolk £40 million by divesting services. In the west midlands, asset rationalisation has achieved a £640 million saving. There is a very long list, which I shall not read out, but it is immensely important that authorities recognise that they can protect front-line services by shifting resources from the centre to the most vulnerable.