Comprehensive Spending Review Debate

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Department: HM Treasury

Comprehensive Spending Review

Liz Kendall Excerpts
Wednesday 20th October 2010

(14 years, 1 month ago)

Commons Chamber
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George Osborne Portrait Mr Osborne
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I agree with my hon. Friend.

Liz Kendall Portrait Liz Kendall (Leicester West) (Lab)
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Cutting funds for local councils by 28.4% over four years will decimate services in Leicester West, and allowing councils to borrow against business rates will further widen inequalities, as areas with more private businesses can borrow more to improve services. Can the Chancellor explain to me, and to my constituents, how that is fair?

George Osborne Portrait Mr Osborne
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I am sorry that the hon. Lady is opposed to more freedom for local government—[Interruption.] Well, that is what my increment financing proposal means. Along with our other decisions about grants, it means more freedom for local government. As I have said, this is a challenging settlement for local government. [Interruption.] Let me repeat that the Labour party created the budget deficit, and if the Labour party does not have a plan, it is in no position to criticise those who are trying to sort out this mess.