Finance Bill

Lord Greaves Excerpts

2nd reading & Committee negatived & 3rd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard) & Committee negatived (Hansard): House of Lords
Friday 17th July 2020 Lords Chamber

[Lord Greaves (LD)]

What a lot of good sense, my Lords.

The noble Baroness, Lady Verma, is in Leicester, which is having difficulties, and asked if there is any money left in the local authority coffers. I rise to tell her that there is not, and to talk about local government. I declare my interests, having been a local councillor in the Pendle area for most of the last half-century. Pendle is now working hard to avoid imposing a Leicester-type lockdown.

The Local Government Association estimates that the cost to local government of coronavirus will be about £7 billion. That is the shortfall after all the grants so far announced by the Government. One of the real problems is that the Government are not fully funding lost income. For the council in Pendle, of which I am a member, the overall cost for that small district is about £3 million, of which the Government have so far provided about £1 million, leaving a shortfall of £2 million. That may not sound a lot, but that is on this year’s budget of about £13.5 million, and so is a very substantial amount on top of all the cuts made in the last few years, which have cut council finances to the bone.

There are two specific grouses as far as we are concerned. The test and trace funding is going only to upper-tier local authorities in a shire county such as ours, whereas a lot of the hard work has to be done by the people on the ground: the district council environmental health officers and the public health staff, with the expertise and the local knowledge. In Lancashire, the money for the hubs which were set up to help people who could not afford food and other essentials during the worst of the lockdown goes to the county but is being spent by the district.

Finally, the cost to parish and town councils, particularly the big ones that provide leisure services and so on, has been very substantial. They are being left out altogether. Local government needs the shortfall of £7 billion to be addressed. The Government promised that they would provide whatever was needed. We are still waiting.

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

I am sure the House will join me in wishing a very happy birthday to the next speaker, the noble Baroness, Lady Gardner of Parkes.