Council Tax

Lord Clark of Windermere Excerpts

Wednesday 15th September 2021 Lords Chamber

[Viscount Younger of Leckie (Con)]

The Government recognise that authorities have differing abilities to generate income from council tax, and the settlement methodology takes these into account when allocating funding. The Government have used grant funding to equalise against the adult social care precept since its introduction. Funding baselines for every authority, whether up north or down south, are determined by an assessment of the relative needs of areas, including measures of deprivation. Indeed, councils in the most deprived areas of the country receive 16% more in core spending power than in the least deprived areas.

[Lord Clark of Windermere (Lab)]

My Lords, throughout Cumbria, whether in Barrow, Carlisle, Kendal or the many households in the villages in between, householders feel aggrieved that because of the national framework they are forced to pay more council tax than luxury houses in London. Even the Government must accept that it is grossly unfair. When do they intend to take one small step towards alleviating the problem and help levelling up in Britain?

[Viscount Younger of Leckie (Con)]

I am sure the noble Lord is aware of the support that is given. Following the spending review in 2020, local authorities’ core spending power is estimated to have increased by 4.6% in cash terms in 2021-22. This follows the largest real-terms increase in core spending power for a decade at the spending review in 2019. Local authorities, including the ones he mentioned, will have access to £2.2 billion of additional funding in 2021-22 to invest in public services.