Local Government: Funding

Lord Watts Excerpts

Monday 27th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I have to say that it is very difficult to take lessons from the Benches opposite about local government funding, particularly in relation to council house building. The noble Lord will be well aware of the steps we have already taken to increase overall funding for local government but also that we have taken big steps to alter right to buy so that local authorities can keep 100% of the receipts they get from right-to-buy properties. We are changing the position on new properties built by local councils so they do not have to sell them at less than they built them for. We are fixing the foundations of a very broken system that we inherited from 14 years of the noble Lord’s Government.

[Lord Watts (Lab)]

My Lords, the last Tory Government spent 14 years taking money from the poorest local authorities and giving it to the richest ones. Will the Minister guarantee that the system that comes forward will be fair and be based on the need to spend?

[Baroness Taylor of Stevenage (Lab)]

My noble friend is absolutely right. The review that we are undertaking as part of the spending review in the spring will do just that. We made some steps forward in this year’s settlement; we need to take further steps in that regard, and the local government funding formula will be reset to take account of need.