Local Government Finance

Joan Walley Excerpts

Wednesday 9th February 2011 Commons Chamber

[Mr Pickles]

I feel a certain degree of camaraderie and fraternal friendship with the hon. Gentleman, because unlike his party’s Front Benchers, he has said that Labour’s cuts would have been just slightly less than those that we are presenting. I think that is probably true, but the challenge facing local government means that just a couple of million quid would not make all the difference. There are very challenging circumstances.

[Joan Walley (Stoke-on-Trent North) (Lab)]

Will the Secretary of State give way?

[Mr Pickles]

In a moment—I need to respond to the hon. Member for Dudley North (Ian Austin) first.

Let us consider a number of local authorities. Some have been talking about thousands of redundancies. I do not want to appear partisan, but Sheffield is talking about 250. Sunderland, a Labour council, is not planning percentage cuts in its Supporting People provision. Walsall is not planning to make an overall cut in its voluntary sector funding. It is possible to deal with the situation.

[Joan Walley]

Will the Secretary of State give way?

[Mr Pickles]

In a moment.

The hon. Member for Dudley North has to understand that these are local decisions. We have ensured that there are sufficient funds to protect the vulnerable, but ultimately local councils have to make local decisions.

--- Later in debate ---

[Mr Pickles]

We have done three significant things. First, we moved the relative needs threshold to 83% from 73%, which makes a considerable difference and is far more than the Labour Government ever offered poorer communities. We then divided up authorities based on their level of funding, from the most dependent on grant to the least dependent, and ensured that the most dependent received smaller cuts. Then we managed to find an additional transitional amount to ensure that no authority loses more than 8.9%. I will have a further announcement to make about that.

[Joan Walley]

My constituents do not want the House to make politics of what is happening. Everybody understands the situation in respect of the cuts as a whole, but in areas such as Stoke-on-Trent, where we have deprivation and people out of work, we have made representations to the Secretary of State and his Ministers to say that we want time: we want time to plan how we can keep what is most important. This finance settlement gives us no encouragement whatever that this is anything other than the Government blaming local councils for what is happening.

[Mr Pickles]

The hon. Lady and her councils were given quite a lot of time. The former Chancellor, the right hon. Member for Edinburgh South West, made it clear that changes were going to be made, and a number of the most vulnerable areas were hit by the fact that it was made clear that the working neighbourhoods fund was going to end in March this year. It seems to me that a number of councils did not make any provision for that and blithely assumed that the money would continue, despite the fact that the Labour Chancellor made it perfectly clear that it was ending. Ladies and gentlemen on the Labour Benches who cheered his Budget announcement did not raise any objection at the time.