Local Government Finance

Debate between Kris Hopkins and John Healey

Tuesday 10th February 2015 Commons Chamber

[Kris Hopkins]

We need to recognise—I have said this before—that the 10% most deprived authorities receive on average 40% more than the most wealthy authorities. It is right that we create a formula to ensure the more vulnerable and deprived areas get that response, but we should not just measure on the basis of what moneys have been allocated. Local authorities now have the ability to raise money and are rewarded for building houses. I would also point out that the growth deals associated with Liverpool are significant and are led by local leaders.

With the addition of these extra resources, the overall reduction in local authority spending power in 2015-16 is 1.7%. That is lower than that proposed in our provisional settlement. Taking into account the funds we are providing to support local transformation, the overall reduction is still lower, at 1.5%. Once again, the settlement ensures that councils facing the highest demand for services will continue to receive substantially more funding, and we continue to ensure that no council will face a loss of more than 6.4% in spending power in 2015-16.

[John Healey (Wentworth and Dearne) (Lab)]

Does the Minister accept that spending power disguises the real pressure on many councils, and that the money allocated does matter? Barnsley, which covers part of my constituency, is facing eye-watering cuts: a 26.9% cut in the revenue support grant next year, it tells me, and an overall cut in its settlement of 13.6%. It is absolutely nothing like the smaller figures he is giving the House.

[Kris Hopkins]

I hope, then, that the right hon. Gentleman has apologised to his constituents for the financial nightmare this country faced in 2010. The Government are not making these decisions out of a desire to reduce funding for the sake of it; we are responding to the appalling economy that Labour left.

Oral Answers to Questions

Debate between Kris Hopkins and John Healey

Monday 15th December 2014 Commons Chamber

[Kris Hopkins]

I recognise the work of local councils in helping individuals who are in very vulnerable situations. There will be an announcement on the local government finance settlement. We will take into account what the hon. Gentleman says, but I point out that there is a £94 billion welfare safety net. We have given local authorities the opportunity to use their resources in whichever way they think is appropriate.

[John Healey (Wentworth and Dearne) (Lab)]

When the Minister makes the announcement, will he recognise that many of the most severely disabled people, who depend on the independent living fund, flourish with the independence it gives them? The fund is being wound up in March and they are very frightened that they will lose that independence. Will he review the protection available, even at this eleventh hour, and ensure that councils can continue ILF provision in full?

Oral Answers to Questions

Debate between Kris Hopkins and John Healey

Monday 20th January 2014 Commons Chamber

[John Healey (Wentworth and Dearne) (Lab)]

12. What steps he is taking to ensure that claimants of housing benefit are able to access accommodation in the private rented sector.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)]

The key to making the private rented sector accessible to all is to build more homes for rent. That is why we are investing in the private rented sector through the £1 billion Build to Rent fund and giving £3.5 billion in guarantees to get builders building—and we will deliver 170,000 new affordable homes by 2015 through this process.

[John Healey]

I came across the case of Christina last week. She is a homeless young woman, helped by Centrepoint, the charity. She wants to finish her college course, she wants to get a job, and she wants to move on with her life, but she cannot because no private landlord will take her while she is on housing benefit. Will the Minister now admit that the housing benefit changes are locking people on low incomes, including those who are in work, out of private housing altogether?

[Kris Hopkins]

If the right hon. Gentleman wants to write to me about the specific individual concerned, I will attempt to address that case, but I reassure the House that we take seriously the need to deliver affordable housing. That is why the Government have clearly laid out that our principal priority in house building is supporting the affordable sector. Indeed, 170,000 new houses will be delivered by 2015, and we will soon announce a prospectus that will deliver 160,000 new homes by 2018. That is our commitment to people such as the one he mentioned.