Local Government Responsibilities: Public Services

Debate between Luke Hall and Rachel Hopkins

Wednesday 18th March 2020 Commons Chamber

[Luke Hall]

I thank my right hon. Friend for those words. She is absolutely right: we should commend our public servants and local authorities hugely for the work they will be doing in the days and weeks ahead, and I would like again to put on the record my thanks to them. If the hon. Member for Warwick and Leamington (Matt Western) will bear with me, I will touch on his point a little later.

We have already outlined an extensive package of support to combat the effects of this crisis. A lot of the points made by the hon. Member for Worsley and Eccles South and other hon. Members were, rightly, about future funding for local authorities. I completely understand that, and perhaps it is worth addressing that at the start of my remarks.

The Chancellor announced last week that £5 billion would be made available for the public service response, with more to come if and when it is necessary. Let me say right from the start that we know that councils are under considerable financial pressure in responding to this crisis. We know that they will need more financial support from the Government, and we will give them that support. We are still having conversations with the sector—the Local Government Association and councils —to refine exactly what that might look like, but we will outline further steps we intend to take in this area very shortly.

[Rachel Hopkins (Luton South) (Lab)]

Local councils do not get their income only from business rates and council tax; we should recognise that, in the context of 10 years of austerity, many have used their trading opportunities to generate income. For example, Luton Council relies on passengers going through our airport to generate income that funds council services. With the massive changes to airlines, that income will drop off. Obviously, that will need to be taken into account in any support offered by the Government.

[Luke Hall]

I thank the hon. Lady for putting that point on the record. She is absolutely right to do so. I very much hope that we will outline imminently the steps that we are looking at taking to support councils further.

Yesterday, the Chancellor announced in the House a series of measures to support communities in response to the crisis. The funding he announced amounted to more than £330 billion of financial support, equivalent to 15% of UK GDP. The £10,000 grants to small businesses that are eligible for small business rate relief and the £25,000 grants to retail, hospitality and leisure businesses operating from smaller premises will no doubt help to alleviate pressure on local businesses across the country, but we understand the pressures that are about to come. The Secretary of State for Business, Energy and Industrial Strategy will write to all local authorities in the coming hours to set out how exactly those are to be delivered and the mechanisms by which they can be administered.