Local Authorities: Fair Funding Review

Lord Blunkett Excerpts

Thursday 14th March 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is right about the importance of deprivation but she is wrong to say that we have not yet issued the policy. It was out for consultation until 21 February, as she will know, and we are now considering the responses. Even in that consultation we recognise the importance of deprivation in relation to, for example, adult social services, children’s social services, fire and rescue services, and public health. The noble Baroness makes a powerful point but it is recognised and the policy is still being considered.

[Lord Blunkett (Lab)]

Will the Minister, for whom I have a great deal of time, admit to the House that it is impossible to have a fair funding formula if you are dealing only with the specific grants that he outlined in his Answer and the business rate arrangements now being put in place? With the removal of the revenue support grant, it is impossible to have the distribution to which he has just referred.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lord very much for those kind comments. The redistributive element that he referenced will be done through the business rate retention scheme, which will become live at the same time in 2020. I very much agree with him about the need also to bear in mind government grants, of which there are many, in addition to the local government settlement and many programmes such as the Future High Streets Fund, the Coastal Communities Fund, the Stronger Towns Fund and so on that we have seen recently.