Spending Commitments to Local Councils

Lord Young of Cookham Excerpts

Monday 22nd July 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, neither I nor this Government are under any illusion about the scale of the pressures that local authorities are facing. Successive years of underfunding and increasing demand for services have left councils experiencing significant budget pressures and vulnerable to shocks, impacting the services that they provide to local people—these are key services, as the noble Lord set out. These will all have to be considered as part of the next spending review and I am sure that key adult care and children’s services will be very high on the list. I will look at the report with great interest.

[Lord Young of Cookham (Con)]

My Lords, I welcome the noble Baroness to her post. Further to the question about spending commitments, can she confirm that the firm commitment in the Labour manifesto,

“Labour will not increase taxes on working people”,


applies to council tax?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord for his question. Council tax increases, of course, are ultimately decided by local authorities, but the Government are committed to keeping taxes on working people and households as low as possible. We will carefully consider the impact on councils and taxpayers before making any decisions on taxes. Decisions on referendum principles will be part of the next spending review process and of course we will seek the views of local government before we take any decisions on those.