Council Tax

Debate between Lord Grocott and Baroness Taylor of Stevenage

Monday 3rd February 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

Absolutely not. The range of legislation we have brought forward has shown just how progressive this Government are being in both fiscal and social policy.

[Lord Grocott (Lab)]

My noble friend, with her long experience in local government, knows well enough that, when there are major reorganisations in local government, you can be absolutely certain they will cost a lot of money, whatever the savings in the long term may be. Can she assure us that in the plans being considered, which are already costing local authorities preparation money to defend themselves or to decide which groups to join, the cost of this will not fall on the council tax payer?

[Baroness Taylor of Stevenage (Lab)]

My noble friend makes a very important point about the cost of devolution. We want to see all of England accessing that devolved power, and efficiencies will be generated in the long term. My honourable friend the Minister will be setting out the local government finance settlement later today, and I am sure he will include the details then.

Local Government Reorganisation

Debate between Lord Grocott and Baroness Taylor of Stevenage

Thursday 16th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I disagree with the noble Lord. I believe that creating councils that can deliver good public services at local level is vital. We have seen from the areas that already have mayors that they have been able to take a strategic approach to delivering vital strategic assets that drive the local economy in their area, which will improve the lives of their residents. On the question he raised about funding, PricewaterhouseCoopers estimated that there would be a one-off reorganisation cost of around £400 million, but that there would be billions of pounds-worth of savings to the public purse over subsequent years, which could be reinvested in delivering the services that people are looking for.

[Lord Grocott (Lab)]

As my noble friend knows, the White Paper suggests that the optimum size for a unitary authority is a population of about 500,000. Can I get her assurance that those unitary authorities that are working effectively and efficiently, and providing good local services, and which may be short of 500,000 in their population, will not be unnecessarily disrupted? Furthermore, over the years I have seen so many different optimum sizes being recommended for the provision of local government services. Will she place in the Library the basis of the calculation that the Government have made that leads them to the conclusion that 500,000 is the right figure?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for his important question. It gives me an opportunity to clarify some of the misunderstanding around the number that has been given. It was in our manifesto that we would pursue a devolution agenda, and for many months after the Government were elected we were pushed to give an optimum number for the size of a council. Of course, when we did so, everyone said, “Not that number; that’s not the right number.” There is some flexibility around it. The important thing in the whole of this process is that the size, geography and demography of the units created make sense for people. We can be flexible around the numbers, but the number of 500,000 was intended to set out what we feel would be around the right size for the economies of scale and to deliver effective services at local level in a way that gives value for money.