Budget Resolutions and Economic Situation

Debate between Jon Trickett and Kevin Hollinrake

Monday 21st March 2016 Commons Chamber

[Jon Trickett]

I shall make a little progress, if I may, as a lot of people want to speak in the debate.

I was talking about the unfair distribution of cuts. The three most affluent areas in the country have had the lowest amount of cuts to their Government support since 2010, yet lo and behold, the same three affluent councils then received an extra £33.5 million from the Secretary of State’s transitional grant. That £33.5 million was 10% of the entire amount of transitional grant that was given to the whole country, just focused on the three most affluent councils.

I will give way to my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) if she wishes. It seems she does not. I evidently made such a devastating point that she is still reflecting on it.

Let me draw a comparison between the three most affluent councils and the most deprived councils in the country. [Interruption.] This is an important point. I hope Government Members are not scoffing. Liverpool, Knowsley, Hackney and Manchester not only had the most severe cuts to their budgets since 2010, but they did not receive a single penny in transitional grant. There is no rational explanation for such a distribution of Government largesse. Perhaps the Secretary of State will consider publishing the criteria by which the civil service distributed that £300 million. We have had no luck so far in finding out how he managed to produce a distribution that favoured the richest councils and penalised the most deprived.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

How does the hon. Gentleman reconcile his comments that rural areas are getting a better deal? My local authority, North Yorkshire County Council, was facing a 39% reduction, compared to an average reduction of 20% to metropolitan areas.

[Jon Trickett]

I believe the hon. Gentleman said North Yorkshire. If I remember correctly, North Yorkshire got £10 million in transitional funds. West Yorkshire and south Yorkshire got not a single penny. Not a single council in the whole of west and south Yorkshire got a single penny, yet the cuts that west Yorkshire councils faced were much more acute than those that North Yorkshire had faced.