Local Authorities: Budgets

Lord Hannan of Kingsclere Excerpts

Tuesday 19th September 2023 Lords Chamber

[Baroness Penn (Con)]

I do not agree with the noble Lord’s analysis but, as I said to the noble Baroness in my Answer, our approach takes councils’ relative needs into account. We recognise that this may need to be looked at again but, to provide councils with certainty, that will not be done during this spending review period; it will be looked at after the next Parliament.

[Lord Hannan of Kingsclere (Con)]

My Lords, we currently give three-quarters of local councils their grants from the centre. It is a higher figure than for anywhere in Europe, except tiny Malta, hence the assumption on all sides is that the solvency of local authorities is ultimately for central government. Does the Minister not agree that it would be healthier for democracy if local councils raised a higher proportion of their own budgets, so that there was a proper link between taxation, representation and expenditure?

[Baroness Penn (Con)]

My Lords, the Government are moving towards such steps—for example, through mayoral combined authorities and other areas where we are devolving both greater control of funding and powers to those areas to act. With that comes greater accountability.