Local Government Finance

Jim Cunningham Excerpts

Wednesday 7th February 2018 Commons Chamber

[Sajid Javid]

The hon. Lady should be assured that Liverpool City Council, like almost every other council, is seeing an increase in its spending power from last year going into this year. She points out the challenges that the council has had in trying to bring about efficiencies. That, as I will come on to explain, has been a theme for many councils, but she should be assured that over the next two years there is a real increase in the core spending power of all councils, taken together.

[Mr Jim Cunningham (Coventry South) (Lab)]

Set against Coventry City Council’s needs, the so-called increase that the Secretary of State is talking about is delusional and derisory, to say the least. It does not meet the council’s needs.

[Sajid Javid]

Perhaps the hon. Gentleman can draw some comfort from my words in due course.

This work, with the feedback that we have received over the past few weeks, has informed the final settlement that we are unveiling today. It is part of a four-year settlement that gives English councils access to over £200 billion in funding in the five years to 2020. It gives them greater freedom and flexibility over the money that they raise, in recognition of the fact that no one knows their local areas, and the opportunities, challenges and pressures that they face, better than the councils who serve them. It strikes a balance between relieving growing pressure on local government while ensuring that hard-pressed taxpayers do not face ever-increasing bills.

--- Later in debate ---

[Jim McMahon]

Those figures are absolutely right. The analysis from Age UK shows that 1.2 million people who would have been entitled to social care in 2010 are no longer receiving social care because of cuts to the eligibility criteria by councils.

[Mr Jim Cunningham]

Coventry City Council has probably lost about £90 million over the past few years. The Government are playing a very clever game: they are shifting the cost of local government on to the local taxpayer, so that they can boast of keeping taxes low. It is really just a double-edged sword.

[Jim McMahon]

I agree with that. We are here debating work carried out by people outside this place—local councillors and local government workers—and it is right in this place to thank them for their hard work, their dedication and their grit and determination to make sure that services are provided in the face of severe austerity.