Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 14th December 2015 Commons Chamber

[James Wharton]

Discussions are already under way. Officials met local representatives on 2 December and will continue to work through the plans to ensure that they are robust, that they deliver what is needed, that they meet the requirements that we place on such deals and that they have the support they need to continue. We wish to see them progress positively. That is the strongest assurance I can give the hon. Gentleman at this time, because of course those things need to be done properly and thoroughly before plans are taken forward.

[Margaret Greenwood (Wirral West) (Lab)]

14. What steps he is taking to ensure that the funding model for local government is fair.

[The Secretary of State for Communities and Local Government (Greg Clark)]

I will shortly be presenting to the House the local government financial settlement for 2016-17. I will set out how we will deliver a sustainable settlement for that year and later years and pave the way for future reforms to fund vital services, promote growth and efficiency and devolve power and resources, just as local government has requested.

[Margaret Greenwood]

Research by the Joseph Rowntree Foundation shows that since 2010-11 the areas of greatest need in England have seen the largest cuts in local government funding, breaking the historic link between the amount that a local authority spends per head and local deprivation levels. Over the past five years, councils such as Wirral have had severe cuts to their funding, whereas other areas have seen an increase. Forecasts suggest that Wirral will lose at least £126 million by 2020. What will the Government do to ensure that funding for local authorities genuinely reflects the needs of the people who live in the area?

[Greg Clark]

The hon. Lady should wait to see what the settlement has in store, but she should know from the past few years that Wirral’s spending power, at £2,240 per dwelling, is 7% above the national average. Her council has reserves of £80 million, a third higher than they were in 2010. It is important that she bears that in mind.

--- Later in debate ---

[The Minister for Housing and Planning (Brandon Lewis)]

My hon. Friend has given a really good example of a local authority making good use of brownfield land to provide the housing that its local community needs. I congratulate him on thinking properly and locally in that way.

[Margaret Greenwood (Wirral West) (Lab)]

T7. In a hasty attempt to reverse the Office for National Statistics decision to reclassify housing associations as “public”, Ministers were recently reported to be considering the sale of £44 billion of Government grant on housing association balance sheets to private investors. Housing associations have made it clear that they would strongly oppose such a move and David Orr, the chief executive of the National Housing Federation, has called it an “unhelpful distraction”. Will the Secretary of State assure the House and the housing association sector that the sale of Government grant on housing association balance sheets to private investors is not under consideration?

[Greg Clark]

Yes.