Local Government Finance

Louise Ellman Excerpts

Wednesday 19th December 2012 Commons Chamber

[Mr Pickles]

That is certainly the case. We are talking about a 2% trigger for a referendum. Local authorities can go for whatever figure they want, but they will have to face the people. We are offering 1% to local authorities, if they can get it down to that. Essentially, for those that want to increase council tax below 2%, we are talking about less than 1%. That seems to be a very dubious case, given that we are making it absolutely clear that this money is in the base.

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

Liverpool is the most deprived area in the country. Liverpool city council works closely with local businesses to support investment, but the cuts announced today are an added blow to a city already reeling from cuts in local public services as a consequence of Government decisions. Indeed, people in Liverpool have already suffered cuts of £252 per head, compared with an average of £61 per head in England as a whole. Why does the Secretary of State show such contempt for the people of Liverpool?

[Mr Pickles]

The hon. Lady makes an extraordinary point. Let us be absolutely clear: Liverpool receives the enormous amount of £2,836 per household and its cut is on the average. The hon. Lady has made a point that I have often heard in this Chamber, namely: why are other parts of the country not receiving a bigger cut? Let us put this in context. I have the figures for Liverpool. In terms of the old formula grant—the start-up funding allocation—Liverpool receives £386 million, Manchester £391 million, Birmingham £783 million. Windsor and Maidenhead, however, receives £28 million, Wokingham £31 million and West Oxfordshire £5 million. Essentially, the hon. Lady is asking those authorities, which already contribute to the national pool, to increase their council tax by somewhere in the region of 60%. That does not seem like a sensible thing to do.