Oral Answers to Questions

Luke Hall Excerpts

Monday 11th January 2021 Commons Chamber

[Joy Morrissey (Beaconsfield) (Con)]

What plans the Government have to increase funding for local authorities in 2021.

[The Minister for Regional Growth and Local Government (Luke Hall)]

We are increasing funding for councils in 2021-22. Through the local government finance settlement, we are making an extra £2.2 billion available to councils, with an average cash increase of 4.5%—a real-terms increase. We have also announced £3 billion of covid-19 support for next year, taking our total direct support for local government in responding to the pandemic to more than £10 billion.

[Dr Evans [V]]

I am grateful to the Minister for the announcement of the extra cash, particularly the covid cash, in these difficult times. He will know from our many meetings in the year since I was elected about my concern on fairer funding for Leicestershire. If Leicestershire were funded at the same level as London, it would receive an extra £374 per resident. Will he update me on the formula that underpins the structure and whether there will be a review? Is this likely to change? If so, when?

[Luke Hall]

I thank my hon. Friend for his question and the way in which he has consistently and constructively raised this issue with me and Ministers in our Department. Leicestershire will see an increase of 5.5% in its core spending power next year and receive more than £11.5 million to deal with covid pressures. The Government certainly agree that we need an updated and fairer method for distributing funds within local government. I hope he understands that this year we have had to focus on supporting councils through the pandemic, but once this is over we will revisit our shared priority of funding reform. In the meantime, we have substantially increased the rural services delivery grant to £85 million, its highest level ever, which will support the delivery of services in places such as Leicestershire. I am, of course, happy to continue meeting him in the weeks ahead.

[Joy Morrissey [V]]

May I thank the Minister for his covid cash for councils? Will he confirm that the Government will ensure that councils have the financial support they need to respond to covid-19 and support their local communities? In places such as Bucks, particularly, our council is doing a fantastic job but there is a lot of concern about whether it will have the financial support to carry on throughout the pandemic and make sure that care is taken of all the residents.

[Luke Hall]

I thank my hon. Friend for her question. She is right to say that councils have done an incredible job in responding to the pandemic. We have provided an unprecedented package of covid-related support for councils, which is now worth £10 billion over this year and next year. It includes £1 billion of unring-fenced funding, as well as support with lost income from tax, sales, fees and charges. Buckinghamshire will benefit from more than £54 million of covid support this year and £11 million for next year. Councils are the unsung heroes of the response to this pandemic and we are standing squarely behind them.

[Steve Reed (Croydon North) (Lab/Co-op)]

May I take this opportunity to congratulate Christina McAnea on being elected the general secretary of Unison? It is Britain’s biggest trade union and of course has many members who work in local government.

Let me turn to the Minister. How is it fair to force councils to choose between hiking up council tax for hard-working families during the worst recession in 300 years, or cutting social care for older parents and grandparents during an unprecedented global health pandemic?

[Luke Hall]

It is hard to take lectures from the Labour party about raising council tax when Labour doubled council tax while in office and has trebled council tax in Wales. If the hon. Gentleman wants to speak about raising council tax, he should start by speaking to the Mayor of London, who is proposing a 9.5% increase in council tax for next year. We are ensuring that local government has the resources it needs to emerge stronger from the pandemic. That is why we are putting in an extra £2.2 billion next year. We are also giving councils the flexibility to defer any increases in council tax next year if they believe that is right for their community. If the Opposition Front-Bench team looked at the detail of what we are proposing, they would see that we have provided £670 million to help councils to support people who are least able to pay council tax. There is of course one council that will definitely be raising council tax next year, and that is Croydon, because of its completely disastrous management of its finances.

[James Sunderland (Bracknell) (Con)]

What plans he has to support the regeneration of high streets.

--- Later in debate ---

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

What support the Government are providing to help local authorities experiencing a reduction in income as a result of the covid-19 outbreak.

[The Minister for Regional Growth and Local Government (Luke Hall)]

We are providing councils with comprehensive support for income lost due to the pandemic. We are extending the existing compensation scheme for lost sales, fees and charges income into 2021-22, and we have already paid councils £528 million under this scheme. We have introduced a local tax guarantee scheme for this financial year that provides 75% of irrecoverable losses in business rates and council tax, worth an estimated £800 million. We are also allowing councils to phase recovery of collection fund deficits over three years.

[Dr Spencer]

I very much welcome the incredible financial support provided to local authorities, particularly through the national leisure recovery fund. Does my hon. Friend agree that supporting council provision of health and leisure centres is vital in helping us to keep healthy and to support our mental wellbeing? Will he look at the situation in my local authorities, Runnymede and Elmbridge borough councils, and their individual leisure operator contracts and according liabilities, where those are in excess of the support provided by the scheme?

[Luke Hall]

My hon. Friend is absolutely right. Leisure services play a vital role in helping people to be active, supporting physical and mental health, and bringing a wider range of community and wellbeing benefits. I can confirm that Runnymede and Elmbridge have each lodged an expression of interest as the first necessary step in the application process for the national leisure recovery fund; I believe that they will have submitted their completed applications before the deadline of 15 January. It is also worth noting that councils may be eligible for support from the sales, fees and charges scheme, which was recently extended into the first three months of 2021-22, but I am always more than happy to meet him to discuss this matter in more detail.

--- Later in debate ---

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

What steps he is taking to deliver more powers to local government bodies.

[The Minister for Regional Growth and Local Government (Luke Hall)]

We are committed to levelling up across the United Kingdom by devolving directly to local areas, which understand the needs in their community and are best placed to take decisions over investments to drive economic growth and deliver services for their communities. From May this year, 41% of people in England will be living in areas with directly elected regional mayors, and we intend to bring forward the devolution and local recovery White Paper in due course.

[John Lamont]

I welcome the answer from the Minister. It is important that local government has the powers to deliver quality services, but unfortunately in Scotland the SNP Scottish Government have been grabbing powers back from local authorities for years. Does the Minister agree that we need to see Governments of all levels working together to ensure that British people get access to the services they deserve?

[Luke Hall]

My hon. Friend is absolutely right that devolution should be about delivering services that work for local people, which is why we are committed to devolution. We will need, at all levels of government across the country, to work together to achieve that and the best possible services for residents. We intend to bring forward the devolution and local recovery White Paper in due course, which will detail how we will partner with places across the UK to build a sustainable recovery. I can absolutely assure him that this Conservative Government will continue to set the pace on devolution.