Economic Update

Lord Beamish Excerpts

Wednesday 8th July 2020 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

At the beginning of this crisis, the Chancellor said that the Government would do “whatever it takes”. Local government finance is in crisis, but it was not mentioned in his statement today. Durham County Council has spent £62 million on its covid response and it has had £33.2 million from the Government, leaving £28.8 million for the taxpayer locally to pick up. When will he bring forward a comprehensive settlement for local government, which is being called for by all political parties in local government? Without it services will be lost and jobs will also be cut.

[Rishi Sunak]

As a former Local Government Minister, I know at first hand what a great job our local authorities do, but I would say to the right hon. Gentleman that the last two years’ settlements for local government have involved record increases in core spending power—

[Mr Jones]

No, they haven’t!

[Rishi Sunak]

They absolutely have—the highest in over a decade, two years in a row. In this crisis, we have provided £3.7 billion for local authorities and an additional £600 million for infection control. Just last week, at the Local Government Association conference, my right hon. Friend the Local Government Secretary unveiled a new deal with local government to help provide some compensation for the losses through income that has gone, in a sharing arrangement, and it was warmly welcomed by the sector and at the LGA.