Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill

Debate between Jeff Smith and Luke Hall
Luke Hall Portrait The Minister for Regional Growth and Local Government (Luke Hall)
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I welcome the contribution from the hon. Member for Manchester, Withington (Jeff Smith). I shall start by responding to new clause 1, tabled by the hon. Member for Feltham and Heston (Seema Malhotra) and the hon. Gentleman. I am grateful to him for his constructive words and the way in which he has approached the debate.

The new clause would require the Secretary of State to report to Parliament on the number of directors investigated and disqualified under the new provisions in the Bill every three months from the date that the Act is passed. I am grateful to hon. Members for the opportunity to confirm to the House that statistical reporting is routinely undertaken by the Insolvency Service. Regular three-monthly releases cover company insolvencies across the whole UK as well as individual insolvencies in England and Wales. The releases also contain underlying data and are published and available online to everybody.

As well as that, since the start of the pandemic, the Insolvency Service has been publishing experimental monthly releases of data concerning insolvency numbers. This was so that the statistics could act as an indicator of the impact of the pandemic on insolvencies. It may be of particular interest to hon. Members that the Insolvency Service also releases monthly updates about its enforcement activities. This information includes not only the number of companies wound up in the public interest, but the number of disqualification orders and undertakings broken down by the relevant section of the Company Directors Disqualification Act 1986, under which they were sought. Going forward, these numbers will include any orders or undertakings obtained as a result of this new provision. The reports also include information on lengths of periods of disqualification. Furthermore, there is an annual report on the nature of the misconduct being alleged.

I hope that the hon. Gentleman is reassured that a large amount of information is already provided that can be accessed easily through a quick online search and that future reports of enforcement outcomes will include any disqualifications made against former directors of dissolved companies. I would be grateful to him for withdrawing his new clause.

Let me just add one last point. The hon. Gentleman also mentioned the new burdens on councils. I somewhat couched my answer the last time we spoke about it, so I just want to put on record that we will absolutely be meeting the new burdens cost, including the associated administrative and IT costs.

Jeff Smith Portrait Jeff Smith
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I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Clause 1

Determinations in respect of certain non-domestic rating lists

Amendments made: 1, page 1, line 2, for “an English” substitute “a rating”.

This amendment and Amendments 2 to 6 extend the application of Clause 1 to non-domestic rating lists compiled for the purposes of business rates in Wales (as well as lists for England).

Amendment 2, page 1, line 5, for “an English” substitute “a rating”.

See the explanatory statement for Amendment 1.

Amendment 3, page 1, line 8, for “an English” substitute “a rating”.

See the explanatory statement for Amendment 1.

Amendment 4, page 2, leave out lines 22 and 23.

See the explanatory statement for Amendment 1.

Amendment 5, page 2, leave out lines 28 to 35.

See the explanatory statement for Amendment 1.

Amendment 6, page 2, line 40, at end insert—

‘“rating list” means a local non-domestic rating list or central nondomestic rating list under Part 3 of the LGFA 1988.’.—(Luke Hall.)

See the explanatory statement for Amendment 1.

Third Reading

Oral Answers to Questions

Debate between Jeff Smith and Luke Hall
Monday 19th July 2021

(2 years, 8 months ago)

Commons Chamber
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Luke Hall Portrait Luke Hall
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The point of delivering the funding in the way we are is that it is localism in its truest form. We are asking local areas to come up with solutions to the problems that they are telling us they face. We certainly do not believe that the Scottish Government have a monopoly on good ideas for improving Scottish communities. That is why we have asked them to come forward with us, and of course we want to work closely with communities in Scotland and build that long-lasting, strong relationship so that we can bind together our precious Union for many, many years to come.

Jeff Smith Portrait Jeff Smith (Manchester, Withington) (Lab)
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In his speech last week on levelling up, the Prime Minister made a plea to the public to email him with ideas for how to flesh out his so far very vague concept of levelling up. Can the Minister tell us how many emails the Prime Minister has received so far and whether any of them contained a plan with any more substance than the Government’s?

Luke Hall Portrait Luke Hall
- Parliament Live - Hansard - - - Excerpts

Considering the lack of ideas from the Labour party in opposition, I am loth to suggest that that question was ultimately predictable. If Members look at the work we are already doing on levelling up, they will see the £4.8 billion levelling up fund for regenerating town centres and high streets and upgrading local transport networks. They will see the UK shared prosperity fund, which will start from next year. They will see the £220 million of new investment through the UK community renewal fund. They will see the 101 town deals that the Prime Minister announced last week. They will see us progressing towards delivering 300,000 new homes a year by the middle of the decade. They will see the £3 billion we are investing in the city and growth deals, the devolution programme and the freeports we are delivering. In contrast, we see a Labour party with no ideas for levelling up anywhere in the country. All it has is a struggle to reconcile itself to the fact that it is this Conservative Government who are spending money to support the communities that it neglected for so many years.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill (Third sitting)

Debate between Jeff Smith and Luke Hall
Luke Hall Portrait The Minister for Regional Growth and Local Government (Luke Hall)
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It is a pleasure to serve under your chairmanship, Ms Rees. The Bill before the Committee is one of two halves. The first half is a measure that changes the valuation assumptions applied when making business rates determinations in the light of the pandemic. The provisions that will implement the measure are contained entirely within the first clause.

In order to understand clause 1, I will briefly take us back to the Local Government Finance Act 1988, which requires business rates to be calculated from rateable values that, broadly speaking, represent annual rental values. Those values are updated at regular general revaluations. Earlier this year, we were extremely grateful for the cross-party support for the passing of the Non-Domestic Rating (Lists) Act 2021, which sets out the date of the next revaluation on 1 April 2023, based on a valuation date of 1 April 2021. That means that future business rates bills will reflect the impact of the pandemic on the commercial property market.

Outside general revaluations, rateable values can be altered only to correct an inaccuracy or to reflect a material change of circumstance, such as a physical change to a property or locality. For example, a successful material change in circumstances challenge might be made on the basis of significant roadworks in a property’s immediate area. The material change in circumstances legislation itself, which is set out in the 1988 Act, was not designed with pandemics or coronavirus in mind, and the material change in circumstances system was not intended to be used in response to matters with economy-wide impacts. Relying on the MCC system, rather than on targeted business rates reliefs, is not in line with the original intention of the law and would not be the right approach to take to support businesses that have been impacted during the pandemic. Clause 1 of the Bill therefore clarifies that the impact of the coronavirus pandemic, and the Government’s response to it, should be reflected at the next general revaluation on 1 April 2023.

Business rates are devolved, so clause 1 applies to England. Decisions on whether to take similar steps in Wales, Scotland and Northern Ireland are for the respective Governments to make. I understand that in Northern Ireland the matter is still under consideration. The Scottish Government have recently announced that they agree with our position that it is not appropriate to use the MCC appeals system in relation to covid-19 or related restrictions. Yesterday, the Welsh Government announced that they also agree with our position, and set out their intention to seek to include provisions covering Wales in the Bill. We will work closely with the Welsh Government on this, and I will keep Members, including those on the Opposition Front Bench, updated on any amendments to the Bill that might be required. I am glad to say that the largely cross-party support that we have received for this measure is now spreading to cross-territorial support.

As I said on Second Reading, the measures in clause 1 do not mean that we have not provided significant support to businesses during the pandemic; there has been a £16 billion package of support for business rates. We have also announced £1.5 billion in relief to be targeted at ratepayers who have not already benefited from support linked to business rates. The additional business rates relief will be administered by councils, and my Department will continue to work closely with local government to enable ratepayers to apply for the support as soon as possible, subject to the passing of the Bill.

New clause 2 would require an assessment of the effectiveness of the provisions in clause 1 to be made within one year of Royal Assent. It would require the Secretary of State’s assessment to consider

“the interaction of the provisions with other law and policy relating to coronavirus support for business and business rates”,

as well as the Government’s overall package of support for businesses impacted by the pandemic. We completely understand hon. Members’ concern to ensure that the business rates system is kept under review.

The objective of the Bill, which is to ensure that successful MCC appeals cannot be made on the basis of the pandemic or the Government’s response to it, will be met as soon as the Bill is enacted, so I can certainly assure the Committee that there will be no need to monitor the implementation of any changes to the rating list or any new practices by the Valuation Office Agency once the Bill is passed. That is simply because the VOA has not, to date, been amending the rating list to reflect covid-19. I hope the Committee will see that new clause 2 is therefore unnecessary.

I appreciate, however, that interest extends beyond the provisions in the Bill to the design of the wider business rates system. This matter will therefore be considered as part of the fundamental review of business rates, which is currently being carried out by the Chancellor. We published the consultation earlier this month to set out proposals for moving to a system of three-yearly evaluations. As part of ensuring the sustainability of that three-yearly cycle, we are reviewing the MCC system. It is clear from our need to bring forward this piece of legislation that the MCC system has not worked as expected in this instance.

I can certainly assure the Committee that we will be looking more generally at the MCC rules as we see how they can be improved to avoid this type of situation arising again. We will work with the VOA, stakeholders and, I hope, our Opposition colleagues to understand how we can improve the system and track and monitor its operation. We absolutely monitor and track changes to the business rates yield through our regular returns from local government. The VOA publishes regular statistics on the rating list and, of course, keeps us fully informed of activity on the rating list. I am confident we can find a sustainable system that we can monitor effectively and that will stand the test of time.

Jeff Smith Portrait Jeff Smith (Manchester, Withington) (Lab)
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It is a pleasure to see you in the Chair, Ms Rees. May I start by wishing the Minister a happy birthday? What better way to spend a birthday than in a Bill Committee? I am grateful to him for setting out the rationale for clause 1, which would rule out covid-related material change in circumstances claims for business rates appeals.

As we outlined on Second Reading, the Opposition broadly recognise the rationale for the Bill as a whole, and we accept the logic for the provisions in clause 1. Material change in circumstances claims related to covid restrictions would not be the most effective way to provide help for business that have been—I hope only temporarily—badly hit by the pandemic. Indeed, many of those who most need the extra help might struggle with the time-consuming process of such an appeal. We appreciate that a large number of covid-related appeals could lead to what has been described as an effective shadow revaluation, which could put a real strain on the Valuation Office Agency, when its time and expertise would be better used on the upcoming general revaluation of business rates in 2023.

There is also a risk that new MCC-related changes would have to be made every time Government restrictions on businesses changed. It remains to be seen whether we have seen the last of the restrictions and business closures as a result of the pandemic—we hope we have—but if not, a further wave of such applications in the wake of further restrictions could cause future problems for the VOA.

To go alongside this legislation, the Government have announced an additional relief fund for businesses that have so far not benefited from any rates relief, such as those in the supply chain of retail, hospitality and leisure businesses. In principle, that seems a sensible way of administering targeted support without the need for MCC claims, but questions remain: first on the adequacy of the £1.5 billion figure, especially for certain sectors such as large airports, and secondly on the guidance and eligibility criteria for the fund.

We welcome that clause 1 gives local authorities some guarantee that their income from business rates will remain reasonably stable for the immediate future. With business rates forming such a substantial part of local authorities’ income, they need that stability. The uncertainty that would be caused by a potential income reduction as a result of large numbers of MCCs could cause real problems, particularly following such a difficult period for local government, marred by covid pressures after 10 years of austerity and broken promises from the Government about their support.

As I said during the evidence sessions, this legislation can be considered to be shifting the financial risk, or burden, from local government to the national Government by means of support for businesses. That seems reasonable, given the financial difficulties that local government is facing, but it is reasonable only if the funding available is sufficient to guarantee businesses the support they need. On Second Reading, we raised concerns about whether the £1.5 billion package that goes alongside the Bill would be enough to support all those businesses that have missed out on rates relief and other support so far, and the Government still have not clarified how they arrived at that figure or who exactly they envisage it supporting. It would be helpful if the Minister referred to that in his response.

I raise the example of large airports, which have been among the sectors worst affected by the pandemic. They pay huge amounts of business rates, but have been able to access only limited rates relief. Many were planning to put in MCC claims to try to recoup some of that money and stay afloat, but this legislation rules that out. I would therefore be grateful if the Minister could clarify whether the £1.5 billion fund is supposed to cover airports as well as all the other businesses that have missed out.

During the evidence sessions, David Magor, the chief executive officer of the Institute of Revenues Rating and Valuation, said of the £1.5 billion:

“the amount does not appear to be sufficient to meet the desires of all the ratepayers who had outstanding challenges and large assessments, like the airports. The challenge for the Government is to ensure that those particular ratepayers are satisfied.”––[Official Report, Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Public Bill Committee, 6 July 2021; c. 28, Q41.]

Heathrow, for example, had losses in 2020 exceeding £2 billion, including a business rates bill of £120 million— the biggest in the UK. It has been given £8 million in business rates relief. If the £1.5 billion pot is to support large airports too, it would appear to be inadequate. If not, what are larger airports supposed to do as an alternative to claiming for MCC, and will the Government come forward with further funding for large airports and critical infrastructure?

Even taking the airports and critical infrastructure out of the equation, there is serious concern about the £1.5 billion figure, which is shared by some of the experts we heard from at the evidence sessions earlier in the week. We have since had written evidence from the car parking sector, which is another one that has expressed real concerns. The consensus appears to be that we simply will not know whether it is enough or not until the Government publish the guidance for the scheme—something that businesses and local authorities are hoping happens urgently.

Even though it is usual for guidance to be published after the accompanying legislation has completed its passage through Parliament, there seems to be no reason why the Government could not publish draft guidance now and an indicative figure on the amount for each local authority immediately. The Opposition strongly urge the Government to do so, and given that the passing of the legislation is not actually required in order for the £1.5 billion to be released, we encourage the Government to get on with it quickly. There are businesses out there in real financial difficulty that are desperate for rapid help.

I also wonder whether the Minister can address concerns raised during the evidence sessions about the timing of the legislation and its impact on the release of funding. As we heard on Tuesday from Adrian Blaylock of the Chartered Institute of Public Finance and Accountancy and Sarah Pickup of the Local Government Association, there is a concern about timing related to section 47 of the Local Government Finance Act 1988. In essence, a local authority cannot take financial decisions more than six months after the financial year to which the decision relates. As we know, the majority of covid restrictions applied during financial year 2020-21 rather than 2021-22, so there is a question about whether a local authority can grant these reliefs to cover losses incurred during the 2020-21 financial year. Local authorities need reassurance that they can; otherwise, strictly speaking, all the local schemes will need to be set up and be running by the end of September.

As of this morning, we have the legislative timetable until the summer recess, and while the Government thought it appropriate to schedule two days for the Second Reading of the Nationality and Borders Bill, they could not find time for the remaining stages of the Bill we are discussing today. Given that there will be Lords consideration, as well as the conference recess, I do not see how the Bill will get through all its stages before the middle to end of October. If the Minister can correct me on the timescales, I will happily give way. If not, I hope that he will explain how this will affect the timescale for payments.

We have received supplementary evidence from the Institute of Revenues Rating and Valuation suggesting that a way around this problem might be to amend the Bill, effectively to exclude it from section 47 of the 1988 Act. I am interested to know whether the Government might consider such an amendment on Report to give local authorities and businesses reassurance.

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Jeff Smith Portrait Jeff Smith
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Does the Minister accept that there is absolutely no reason to wait for the Bill to pass to put the scheme in place? The Government could distribute the £1.5 billion today, if they wanted.

Luke Hall Portrait Luke Hall
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I thank the hon. Gentleman for that intervention. The point is that we are still working on the final points in the guidance. The LGA made the point that it desperately wants to be involved in the drawing up of the guidance and in setting the framework and parameters. That is what we are doing and going through now. As soon as we are ready to do that, of course that is what we will do. We are as keen as everybody for the support to be available to local authorities, so as soon as the Bill has passed, we will ensure that we get the support out to councils and businesses as soon as we can. It is a point that has been well made by the Opposition and by people who contributed written evidence and who participated in the session earlier this week and the Second Reading debate, so we are acutely aware of that point.

Another temporal question was raised on Tuesday that the hon. Gentleman asked me to clarify today—whether the legislation will prevent councils from awarding rate relief after the end of September. I want to offer some reassurance on that, and I will perhaps do so in writing after the Committee as well, just to provide some more detail. There is a requirement in primary legislation that certain decisions on the use of a discretionary rate relief scheme must be made by a local authority by the end of the September following the year in question. For the year 2021, that deadline is fast approaching. Given the scrutiny that a Bill of this nature deserves, we do not expect councils to be in a position to award the whole £1.5 billion relief scheme in respect of liabilities for 2020-21. Instead, we can simply ensure that the scheme will apply to 2021-22 liabilities, and local authorities have over a year until the deadline for that period. Ratepayers will still be receiving rate relief, which councils can award on the basis of how ratepayers have been affected by covid-19, but it will be against their liability for this year rather than last year, so we can still ensure that ratepayers quickly receive support against their rates bill once the Bill receives Royal Assent. As that is a slightly technical point, perhaps I will put that in writing before Report, so that it can be scrutinised properly by the Opposition and we can discuss the point further.

I appreciate that concerns have been raised about VOA funding. I agree that the Bill will help the VOA to focus on delivering its important functions, such as the wider 2023 revaluation. The Treasury is working closely with the VOA and HMRC to understand the resourcing requirements. We have provided the VOA with £22 million to update its IT systems, enabling it to become more flexible, more efficient and more resilient, and we have provided £31 million to support the revaluation in 2023. Of course, we will continue to assess the VOA’s funding in the spending review as well.

The hon. Gentleman rightly highlighted the pressures on local government and the new burdens that the Bill could create. It is right that when the Government ask councils to deliver new activity we consider new burdens. I assure the Committee that we will work closely with local government to consider, and assess the funding of, any new burdens in the administration of the relief as they arise. We have tried to do that in good faith throughout the pandemic, and will continue to ensure that that is the case.

I thank the hon. Gentleman again for his contribution. I am happy to try to clarify any further points that he wants to raise between now and Report. I look forward to continuing discussions throughout the passage of the Bill.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2

Unfit directors of dissolved companies: Great Britain

Question proposed, That the clause stand part of the Bill.

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Jeff Smith Portrait Jeff Smith
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I thank the Minister. Obviously, this is a technical clause that we have no problem with. I just want to make this point again: the extent and the commencement are important, but the distribution of the £1.5 billion to businesses that desperately need help does not rest on the passing of the Bill and its clauses. The commencement of the help to businesses could start as soon as the guidance is ready.

Luke Hall Portrait Luke Hall
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I thank the hon. Gentleman. That is why we are so keen that we work at pace with the LGA and others to make sure that the guidance is in the right place to distribute so that we can get the support out as quickly as possible.

Question put and agreed to.

Clause 4 accordingly ordered to stand part of the Bill.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill (Second sitting)

Debate between Jeff Smith and Luke Hall
Jeff Smith Portrait Jeff Smith
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Q Can I follow up on a specific question that follows from something you said earlier? I was interested to hear you say that the hospitality trading levels in London are 20% to 30% of what they would normally be, and in the rest of the country it is around 60% to 70%. That is partly down to international travel, and I am guessing that there might also be areas—maybe coastal towns—that might be similarly affected by lack of footfall. I am wondering whether there is an evidence base for those regional or city-based variations that the Government might take into account in guiding the allocations, or is that a little bit too sophisticated to get into?

Kate Nicholls: It is certainly challenging to be able to get into, and I am not sure it would drill down as closely as local authority by local authority level, but there are certainly indications. You can measure footfall drops by high street data: there is good data from Springboard about footfall in our high streets, towns and city centres, as well as shopping centres. They are measuring it for retailers, but that would also apply to hospitality businesses. It is not just the international tourists: it is the offices, the work from home, and it affects different city centres differently according to the demographic that uses them. It is less to do with our coastal towns—they are benefiting from more domestic tourism and domestic footfall—but you are seeing it in London, Edinburgh, Glasgow, Manchester, and to a lesser extent Leeds, Sheffield and Newcastle. They are seeing a drop, but London is particularly badly affected because 70% of London hospitality is inbound tourism, and we are not going to see any pick-up in inbound tourism any time soon.

I think there are broad regional differences that you can apply: it is a very rough and ready crude assessment that you can place on it, but there is a possibility of looking at footfall data. However, I would urge the Government to look at the areas of the country and the constituencies where you have a disproportionately dense population of hospitality and tourism businesses—many of which will be SMEs—and where you have the supply chain businesses that support them. They tend to be local supply chains and to be geographically co-located, so that would be a good indicator of where that support needs to be directed.

Luke Hall Portrait Luke Hall
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Q We are clearly moved to give 100% rate relief to many businesses with a £16 billion pot. Of course, I understand that some of the businesses you work with and represent will have been disappointed about where the line was drawn, so to speak. I just wonder, notwithstanding the point you made earlier in answer to the question about guidance, whether there is anything you would like local authorities to start thinking about as they start to draw up their own guidance schemes in response to some of the early challenges that have been faced by some of the businesses you will be working with.

Kate Nicholls: We would urge local authorities to work with us to identify themselves where the areas of greatest need are. One of the things that has frustrated a lot of our businesses is that there is a central message from Government, and it is not necessarily interpreted on the ground as fluidly as Government might have hoped. When you look at some of the local authority areas, we have had businesses that are clearly designed to be captured and covered by the support mechanisms that are available, but local authorities have often taken the view that if it is not directly specified in guidance and it is not a named company or a named type of business, they are precluded from using their discretion and being able to provide support to those businesses. That is the frustration that our businesses have had on the ground going forward.

It would be helpful if local authorities could be a bit more permissive in identifying the businesses that they know are hurting at a local level, rather than applying a prescriptive approach that says, “If your name’s not down, you’re not coming in,” or “Here’s a tick, you are covered.” That would help immeasurably in those businesses that tend to fall between the cracks because they are not clearcut: if you are a coach operator, are you a tourist business or are you not? A local authority should be able to understand its local area and know which ones are and therefore need to be helped, and which ones actually managed okay. Those are the kinds of areas in which we would like local authorities to use their own discretion, not wait to be told specifically by Government that they can help those businesses.

Oral Answers to Questions

Debate between Jeff Smith and Luke Hall
Monday 14th June 2021

(2 years, 9 months ago)

Commons Chamber
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Luke Hall Portrait Luke Hall
- Parliament Live - Hansard - - - Excerpts

I thank the hon. Gentleman for the way in which he has asked his question. There will be further opportunities for local authorities to submit bids into the fund through subsequent rounds, and we are publishing more details about how the levelling-up fund will operate from next year later in this year. I was pleased to understand that his local authority, which I believe is in category 1, will be submitting a bid by 18 June. I hope it will be making good use of the £125,000 capacity funding that we are providing it with, which I know will help it to work closely with us and build that strong relationship with the UK Government. I look forward to receiving its bid, and I am always happy to meet him to discuss it in more detail.

Jeff Smith Portrait Jeff Smith (Manchester, Withington) (Lab)
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It is now nearly two years since the Prime Minister announced the towns fund, yet 30 towns have only just received confirmation of what funding they will receive, 26 towns still have not received any response to their bid, and precious few projects that have been bid for have been completed. So will the Minister commit to publishing a report on which areas are receiving funding from the towns fund, the levelling-up fund and the community renewal fund, which have missed out, and the impact of any projects that have actually been delivered?

Luke Hall Portrait Luke Hall
- Hansard - - - Excerpts

I thank the hon. Gentleman for his question and welcome him to his place; representing local government on these Benches is the greatest privilege that any of us could ask for, and I look forward to working with him constructively. On the towns fund, the details are already in the public domain on all the towns we have supported and announced town deals for. He rightly says that a number are still awaiting the outcome of their deal, and their details are also in the public domain. We are still in the application process for the levelling-up fund and for the community renewal fund, so we have not got a definitive list of bids that are in, but I very much look forward to working with him. The levelling-up fund and the community renewal fund are important opportunities for our constituencies, right across the country, to invest in upgrading the critical infrastructure that is so important to our constituents.

Oral Answers to Questions

Debate between Jeff Smith and Luke Hall
Monday 13th January 2020

(4 years, 2 months ago)

Commons Chamber
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Judith Cummins Portrait Judith Cummins (Bradford South) (Lab)
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13. What recent assessment he has made of the adequacy of Government funding for local authorities in England.

Luke Hall Portrait The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Luke Hall)
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Next year’s settlement for local government responds to the pressures facing councils by providing access to the largest year-on-year increase in spending power for a decade. Core spending power is expected to rise from £46.2 billion to £49.1 billion in 2020-21—an estimated 4.4% real-terms increase.

Jeff Smith Portrait Jeff Smith
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Big-city authorities such as Manchester have been hit hardest by the cuts at the same time as they have had to deal with the extra costs of deprivation, such as high demand on social care budgets, poor health, and homelessness, with big cities being magnets for homeless people from the wider region. What guarantees can the Minister give that those pressures will be reflected properly in the new funding formula?

Luke Hall Portrait Luke Hall
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Manchester City Council will receive a £30.9 million increase in the provisional settlement—a 7% rise that includes 17.6% in additional adult social care grant. Decisions on the future funding formula are to be taken in the weeks ahead, but we will release some provisional figures in the coming weeks for working groups to look at.