Local Government Finance

Justin Tomlinson Excerpts

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

For Salford, the reduction in spending power will be 8.5% next year and 3.9% the following year. There is a misunderstanding from the right hon. Lady, although I do not mean that disrespectfully. The way to protect the poorest is to put money into the block grant, because that is the most distributive grant. That point is like the argument about the level of capitalisation. The more money that goes into the block grant, the more that vulnerable communities are protected.

[Justin Tomlinson (North Swindon) (Con)]

I support powers to veto excessive council tax rates, especially for those on fixed incomes. That will be welcomed in my constituency, where under the former Labour-controlled council, council tax rates rocketed by 42% in just three years. To protect residents, what levels can we expect for future capping rates?

[Mr Pickles]

Of course, I hope that it will not be necessary to cap any authority this year. I rather hope that they will all accept the council tax freeze. The beauty of the measure is that once we get through this year, there will be no more capping. A reasonable level will be suggested, and after that, local people can decide. If local authorities make a reasonable case for an increase, so be it. The measure will act as a break against excessive council tax rises.