Local Government Finance

Kevin Hollinrake Excerpts

Wednesday 7th February 2018 Commons Chamber

[Sajid Javid]

The hon. Gentleman is obviously familiar with the numbers for his own council, which is good to see, and his council is getting an increase. As I have said, and this will be a theme throughout the settlement, we have to always make sure that we are striking the right balance between providing increased resources and keeping any burden on taxpayers to an absolute minimum. I hope that the hon. Gentleman would support that.

We are creating a whole system of local government that is fit for the future. The current formula for financial allocations has served local areas well over the years.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

North Yorkshire is doing its best to make ends meet despite a difficult and tight spending round. Can it be right that spending power in North Yorkshire is £770 a head, when in many other areas, especially in London, it is around £1,100 a head per year? Does my right hon. Friend agree that we need a fairer funding review that delivers fairness for North Yorkshire and other rural areas?

[Sajid Javid]

I very much agree with the point that my hon. Friend makes about looking at the fairness of the distribution, and I know that he has spoken powerfully about that in the past. We are looking at it, and I will come to it shortly in my speech.

A world of constant change, involving big shifts in demographics, lifestyles and technology, demands an updated and more responsive way of distributing funding. That means that we have to question the fairness of the current system, which is why I was pleased to launch a formal consultation on a review of councils’ relative needs and resources in December. This is not just a paper exercise. We have an unparalleled opportunity to be really bold and ambitious, and to consider with the sector where the most up-to-date evidence and data lead on drivers of local authority costs and to create a whole new system that gives councils the confidence to face the opportunities and challenges of the future.