Oral Answers to Questions

Debate between Kate Hollern and Simon Hoare

Monday 4th December 2023 Commons Chamber

[Kate Hollern (Blackburn) (Lab)]

18. What recent assessment he has made of the effectiveness of assessments of relative needs at ensuring the adequacy of council funding.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

We are in close and regular contact with sector representative bodies and councils from across the local government family to monitor budgets and service delivery. I have had many discussions with those bodies and organisations since my appointment. As hon. Members will know, the final local government finance settlement for 2023-24 made available up to £59.7 billion for local government in England, an increase in core spending power of up to £5.1 billion, or 9.4%, in cash terms on 2022-23. The Government will continue to look in the round at local government spending ahead of fiscal events, and we will be announcing funding for next year’s finance settlement later this month.

--- Later in debate ---

[Simon Hoare]

The hon. Lady, who is my constituency neighbour in some respects, makes an important point in a serious way. I concur very much on the seriousness of the issue and the challenge that it is presenting to our upper-tier authorities. As I said, we will of course look in the round at all the pressures being placed on local government to see what we can do to help. She rightly mentions the rural services delivery grant, which I have championed. It is very much in my mind to see what we can do during the settlement to address the issue that she raises of the cost disparity of delivering quality services in rural settings, particularly where populations are sparse.

[Kate Hollern]

Under the current relative needs assessment formula, the poorest fifth of councils receive about 10% below their assessed needs, while the richest fifth get 15% above them. That is hardly levelling up, is it, Minister? A review of the current formula, which is over 10 years old, has been repeatedly postponed. Meanwhile, local authorities such as Blackburn with Darwen Borough Council could be missing out on thousands or perhaps millions of pounds, which could deliver much-needed services in our town. When will the review finally take place?

[Simon Hoare]

The hon. Lady raises an important point about the formula. I am tempted to say that if the spectre of covid had not, quite rightly, taken up a huge amount of bandwidth in both central Government and local government, we might have been in a different place. We can spend an awful lot of time discussing the minutiae of the formula, and there will be a time when that needs to be done. The crucial task that we have in hand at the current time is to play the cards that we have been dealt, to deliver a settlement that works for local government and to deliver the quality and range of services that all our communities, irrespective of where they are in the country, have a legitimate expectation to receive.