Oral Answers to Questions

Debate between Kris Hopkins and Toby Perkins

Monday 2nd February 2015 Commons Chamber

[Toby Perkins (Chesterfield) (Lab)]

16. What assessment he has made of the effect of real-terms cumulative changes in local authority spending power on services in communities with the greatest needs since 2010-11.

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

Since 2010, we have delivered fair local government finance settlements to every part of the country. All councils have balanced their budgets, and most have reduced council tax in real terms and maintained public satisfaction with services. Councils facing the highest demand for services continue to receive more funding and have higher spending than less deprived authorities.

[Kris Hopkins]

Every part of Government has had to respond to the challenges left by the previous Administration. It should be noted that now each authority does not have to rely just on its grant; it has the ability to raise money itself. Manchester has been very successful at that, securing many millions of pounds through its business tax retention and the new homes bonus. Manchester has also been very successful in securing a multi-million-pound growth deal.

[Toby Perkins]

The PAC report made it clear that councils with the greatest spending needs—the most deprived authorities—receive the largest reductions. The Minister talks about the challenges facing them. He will know that the challenges facing the local authority in Chesterfield are twice those facing the local authority that the Secretary of State is responsible for.

Is it not true that the reason why the areas with the greatest deprivation are facing the biggest cuts is that Tory Governments always redistribute money from the poorest people to the richest? If the disabled, the elderly and the vulnerable in my constituency want to do something about the situation, they should not complain to this Government—they should chuck them out in May.

[Kris Hopkins]

The most deprived authorities receive 40% more than the least deprived. The PAC and the NAO recognised that, on the whole, local authorities have responded well to the cuts and that every single authority has managed to balance its budgets. It should be noted that local authorities have significantly increased their reserves during this period. The reason why each part of Government is having to respond to these financial challenges is the economic incompetence of the previous Government. I am sure that the public out there will not want to give the Labour party the reins of power again.