Local Government Finance Settlement

Debate between Lord Swire and Sajid Javid

Thursday 15th December 2016 Commons Chamber

[Sajid Javid]

Hull, the area the hon. Lady mentioned, will benefit from these changes. She mentioned the change in the precept, which is important; I do not have the exact number for Hull at hand, but it will help. I notice that she did not mention the money going into the new homes bonus. The new homes bonus is allocated on the basis of relative need and takes into account the ability of local areas to raise money through taxes. As it is based on relative need, it will benefit places such as Hull.

[Sir Hugo Swire (East Devon) (Con)]

I agree with my right hon. Friend that this is an opportunity to be bold and to use bottom-up thinking. I welcome the fair funding review, but does he not agree that until that review is completed and we have a fuller picture of what local authorities can afford and what central Government are prepared to provide—taking into account the demographic pressures in various parts of the country, such as mine in Devon—there should be a moratorium on the loss of community hospital beds?

[Sajid Javid]

My right hon. Friend highlights the need for the fair funding review. I hope he agrees with me that it is about time we looked carefully at the needs of every local area, including the more rural areas, and made sure that the way funding is distributed takes into account all the challenges that those areas face. For example, in rural areas, sparsity creates more challenges and funding pressures. He will be aware that my predecessor listened to such arguments and, despite his limited flexibility, took action where he could, with a £65 million rural services delivery grant for 2017-18. My right hon. Friend is absolutely right to highlight that in the fair funding review, we will need to look carefully at the pressures, particularly in rural areas, and make sure that we act on them.