Local Government Finance

Karin Smyth Excerpts

Thursday 17th December 2015 Commons Chamber

[Greg Clark]

I will certainly consider the case that my hon. Friend has made. However, one of the advantages of a four-year settlement is that local authorities can prepare for the future and manage their resources well, rather than being subject to occasional year-to-year variations in the national Government income. It gives them a greater proof against the uncertainty that they have experienced for a long time about what is coming each year.

[Karin Smyth (Bristol South) (Lab)]

I am pleased that the Secretary of State has noted the criticism by the Public Accounts Committee of the handling of the better care fund and the public health grant. However, a year ago the National Audit Office reported that his Department had

“a limited understanding of the financial stability of local authorities”,

and the position is being made worse by the complexity of devolution.

The Public Accounts Committee, of which I am a member, considered city deals, the Care Act 2014, and—as was mentioned by my hon. Friend the Member for Sheffield South East (Mr Betts)—the new burdens that are being imposed. Bristol’s people service was already £6.3 million overspent by November. What assurance can the Secretary of State give us that he is heeding the Committee’s recommendations, and that, given the various announcements about policy and cuts, he really understands and has a grip on the financial sustainability of local authorities?

[Greg Clark]

The hon. Lady suggests that uncertainty is a source of concern in local government. That is exactly why we heeded the calls of local government for us to provide the certainty of four-year budgets.