Local Government Finance

Lord True Excerpts

Thursday 17th December 2015 Lords Chamber

[Baroness Williams of Trafford]

My Lords, in answer to the second part of the noble Baroness’s question, that will be determined in due course. As I said to the noble Lord, Lord Shipley, the Government will not let the councils that will really struggle in that area fall beneath a certain level. Regarding the rural services delivery grant, this is not a false dawn. The increase is a quadrupling, so the Government recognise some of the problems rural areas face. The more sparsely populated they are, clearly, the more money they need per head to provide basic services.

[Lord True (Con)]

My Lords, I fear this is perhaps not the settlement local authority leaders have “yearned for”, to repeat the slightly gushy phrase used in the Secretary of State’s Statement. However, it would be extremely churlish not to welcome the four-year settlement proposal. Whatever sort of certainty it is, it is important that we have that basis, and I thank my noble friend for that.

I also thank her for recognising the efforts that local authorities, of all stamps, have made. We have made huge economies—ahead of the Government in many respects—and we will carry on doing so. However, I hope the Minister will be prepared—my honourable friend Tania Mathias made the same point in the Commons—to recognise the position of anomalous authorities. At first blush, our area stands to lose nearly 40% of our RSG at a stroke in one year, and we have more over-65s than other authorities in London that are twice the size, so there is a need for dialogue here.

I also ask my noble friend to be cautious about devolution. Some of it is genuine and welcome, but too much is illusion and some of it is an instrument of control. It would be good if, in the dialogue over the next few months, local government and central government between them could disentangle what devolution means.

[Baroness Williams of Trafford]

I thank my noble friend for, as always, his very sensible words. I said in my previous answer that I wish that when I had been a local authority leader I had had some sort of certainty as we lurched from year to year with local government settlements. I thank him for making the observation that the certainty is welcome. It also encourages councils to look at their reserve position. By their nature, reserves are for one-off, planned spending and are never intended to prop up revenue spending. However, if you know what your four-year position is, you can use reserves for one-off measures.

My noble friend talked about the reduction in RSG and—I presume by inference—the changeover to business rates. The Government will be consulting widely on that. I hope to see people like my noble friend coming to discuss with my department how some of the anomalous situations that might arise, particularly with an older population, can be dealt with through this process.

I take his point about devolution, but he will not be surprised to hear that, as a former Greater Manchester councillor, I do not perhaps share so much of his pessimism about it.