Local Government Finance

Louise Ellman Excerpts

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

I entirely agree with my hon. Friend. I am delighted that the reductions in Cornwall will be 3.9% next year and 2.2% the following year. He is entirely correct. No matter what the Opposition say, we are passing real, substantial powers to local authorities. We have reduced the number ring-fenced from 90 to about 10. The only substantial ones to note are the school grant and the national health service grant that starts in 2013. We have given local authorities a great deal of leeway and discretion. Given that the Local Government Association said that it would be perfectly capable of dealing with a 9% reduction in spending and that the overwhelming majority of councils are well below 8%, I am very surprised—as, no doubt, he is—that there is not more celebration across the Chamber.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Liverpool is the most deprived city in the country and 40% of 16 to 18-year-olds there are about to lose all their education maintenance allowances. Will the Secretary of State tell the House how much Liverpool will lose in cash terms, including the cuts already made this year?

[Mr Pickles]

I made a very pleasant visit to Liverpool earlier this year and had the opportunity to meet and spend time with Councillor Joe Anderson. He told me that he felt that his chief executive and senior staff were overpaid. I commend to the hon. Lady the very brave decision that he has taken today to reduce his top management of 74 by 48. By just removing 48 staff and those among the top officers taking pay cuts, £4.25 million has been saved. That is an indication of the determination of Liverpool. I am delighted to tell her that giving a new damping grant to Liverpool has meant that we have saved an extra £15 million on top of that.