Oral Answers to Questions

Debate between Judith Cummins and Mark Francois

Monday 14th September 2015 Commons Chamber

[Julie Cooper (Burnley) (Lab)]

14. What assessment he has made of the effectiveness of the local government grant formula in directing funding to areas of need.

[The Minister for Communities and Resilience (Mr Mark Francois)]

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.

[Judith Cummins]

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.

[Mr Francois]

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.