(3 months, 3 weeks ago)
Commons ChamberThank you, Madam Deputy Speaker, and good luck in your new role.
It is possible to have successful development, but from experience it has to be something done with people and not to people. This policy is the latter. These pernicious top-down targets have the practical effect at ground level of setting one town against another, one village against another and one local community against another; and given the Chancellor’s statement on public spending yesterday, who will pay for the tens of billions of pounds-worth of infrastructure that would be required to make all this work? All experience shows that, on development and house building, the man or woman in Whitehall really does not know best. Why then, is the Secretary of State going back to the old, failed way of doing it, which will not work?
(9 years, 2 months ago)
Commons Chamber14. What assessment he has made of the effectiveness of the local government grant formula in directing funding to areas of need.
Councils facing the highest demand for services receive substantially more funding, including through formula grant. With the introduction of business rates retention in 2013-14, there has been a deliberate shift away from keeping authorities dependent on grants and towards providing councils with the tools and incentives they need to grow their local economies.
The Minister’s implication that areas of need are being fairly treated by the local government grant formula is simply not proven by the evidence. Research by the Chartered Institute of Public Finance and Accountancy found that many councils serving the most in need have been worst hit by the cuts. Indeed, in the list of councils worst hit by the cuts, Bradford council came 353rd out of a possible 383. Surely he agrees this is not fair.
Bradford has an area spending power of £2,295 per dwelling, which is 10% above the national average, and Bradford council also has £136 million in its reserves. It might want to deploy part of those reserves to address some of the challenges it faces.