Local Government Finance (England)

Debate between Liz Kendall and Robert Neill

Wednesday 10th February 2016 Commons Chamber

[Robert Neill]

I had better not because I need to save time.

Very often, the greatest driver of adult social care is not purely deprivation; it is age profile, as much as anything else. We need to build that sort of thing into the equation. We also need to make sure that where local authorities—

[Liz Kendall]

Will the hon. Gentleman give way?

[Robert Neill]

I am sorry. I have been generous and time is short.

We need to make sure, going forward, that where local authorities can demonstrate long-term efficiency and a record of reinvesting in improved services, that is given as much weighting in the calculation of a formula as a purely formulaic needs ratio matrix that has been established in the past. That will drive behavioural change. Those of us who call ourselves localists want to give local authorities the tools, the means and the incentive to change behaviour and to be more efficient and more self-reliant. We are part-way down the track on that.

The return of business rates to the localities is a huge step forward. It was an error that my party made in government, but we have rectified it and that is a good thing. The next step that I hope the Secretary of State will take in the succeeding years of this settlement is to entrench efficiency as something that should be rewarded, just as much as ticking boxes on the needs indices are. Then we will get genuine fairness in local government, something that is genuinely responsive to local needs, and gives local representatives the ability to shape their policies and financing to the needs, concerns and aspirations of their communities. If we achieve that, this settlement will be worth a very great deal indeed. I commend it to the House.