Local Government: Big Society

Lord Beecham Excerpts

Monday 28th February 2011 Lords Chamber

[Baroness Hanham]

My Lords, we are not really on the subject of local government spending at the moment. We have had several discussions on the finance settlement. All I can say is that that finance settlement was demonstrated against a formula, the relative-needs weighting was increased so that money followed socioeconomic indicators. Banded floors were put in place so that the most dependent authorities got the smallest cuts and social service authorities and shire district councils were grouped together in four bands reflecting their relative reliance on central government grant. The right reverend Prelate’s view would suggest that the Government have not taken the greatest possible care with the local government finance settlement in these very difficult circumstances, and that is not the situation.

[Lord Beecham]

My Lords, is the Minister aware that her right honourable friend the Minister for Decentralisation, in an article in the Local Government Chronicle last week, rightly called on local authorities considering cuts on the voluntary sector to discuss those matters? Which voluntary organisations did the Government consult when they abolished the working neighbourhoods fund, reduced the area-based grant and made massive cuts in local government funding that are inevitably going to impact on those very organisations?

[Baroness Hanham]

My Lords, the working neighbourhoods fund was not going to continue. Under the noble Lord’s Government, it was due to finish at the end of three years. The three years would have been up in this financial year, so I do not think that the accusation of getting rid of the working neighbourhoods fund can be levelled against this Government. Decisions have had to be made against the serious financial situation. There have been consultations with the voluntary sector during the course of these decisions. It has made its representations and has been listened to.