Oral Answers to Questions

Luciana Berger Excerpts

Monday 15th December 2014 Commons Chamber

[John Pugh (Southport) (LD)]

3. What assessment he has made of the recommendations of the report by the National Audit Office entitled, “Financial Sustainability of Local Authorities 2014”, published in November 2014, HC 783.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

5. What assessment he has made of the implications for his policies of the report published by the National Audit Office entitled, “Financial Sustainability of Local Authorities 2014”, published in November 2014, HC 783; and if he will make a statement.

[Mr Clive Betts (Sheffield South East) (Lab)]

9. What assessment he has made of the implications for his policies of the report published by the National Audit Office entitled, “Financial Sustainability of Local Authorities 2014”, published in November 2014, HC 783; and if he will make a statement.

--- Later in debate ---

[Kris Hopkins]

The record shows that the vast majority of people believe that local authorities offer a good service, and local authorities have achieved significant outcomes despite the reductions. Furthermore, the Government have prioritised the ability of local authorities to grow their budgets by developing local businesses, which has brought in significant money to those establishments—£11 billion has been retained in business rates alone.

[Luciana Berger]

The NAO found that the Minister’s Department did not understand the impact of its cuts on local authority services. By 2017, Liverpool council will have had its budget cut by 58%, which is 20% more than the national average, and it has reserves of only £39 million—down from £125 million—so what is his assessment of the impact of his Department’s cuts on the city of Liverpool?

[Kris Hopkins]

The councils facing the most demands are receiving the most money and will continue to do so. It is exceptional that a great city such as Liverpool is standing up and recognising its potential and how it can get itself out of the financial difficulties it faces. The fact that it is confident about its city deal, which will result in 15,000 jobs and 16,000 houses, as a consequence of its leadership, and the fact that it is growing its business base and drawing down significant amounts of money to support local businesses, demonstrates that the community understands the direction to go in, even if the hon. Lady does not.