Local Government Finance Debate

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Mark Pawsey

Main Page: Mark Pawsey (Conservative - Rugby)

Local Government Finance

Mark Pawsey Excerpts
Wednesday 9th February 2011

(13 years, 3 months ago)

Commons Chamber
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Lord Pickles Portrait Mr Pickles
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Yes, I can—Reading and Ribble Valley have done so. We have a list, but the hon. Gentleman is ascribing words to me that I did not say. I said that before authorities touch front-line services, they should look at sharing back offices, chief executives and top offices, move back services and improve procurement. That is what I said. There is a very big difference—right across the country—between councils that have attempted those things and those that have decided to cut deep into public services.

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Lord Pickles Portrait Mr Pickles
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It appears that there are two kinds of authority. There are Conservative and Liberal Democrat authorities that seem to be making a genuine attempt to protect the front line, as are a significant number of Labour authorities, but there are several that are simply grandstanding. They have perhaps made one or two financial mistakes in the past and are seeking to hide them by claiming that the financial settlement is the problem.

Mark Pawsey Portrait Mark Pawsey
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My right hon. Friend spoke about the need for councils to control executive salaries. Does he have some words of comfort for Rugby borough council, which has chosen to save £100,000 by not replacing its chief executive and devolving the responsibilities to deputies and the elected leader of the council?

Lord Pickles Portrait Mr Pickles
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Hammersmith and Fulham is obviously the apple of my eye in London, but the decision taken by my hon. Friend’s council is a very sensible one. I am delighted that chief executives have taken a cut in salary, and I am even more delighted that the salaries advertised for chief executives have gone down considerably.

It is only right for hard-working families to be given a helping hand. We are providing an extra £650 million so that local authorities can freeze council tax for a year from April without local services losing out. We give each council that freezes or reduces council tax the equivalent of a 2.5% increase instead. More than 130 councils have already said that they will take this offer and more will follow as they finalise their budgets. No council should think that it can get away with squeezing its residents.

In the long term, local people should have the power to veto excessive council tax rises, but for the time being the Government will use their capping powers to protect them. Today I have laid before the House a written statement explaining the principles that we are using to define what excessive council tax means. An authority will be liable to be capped if it couples an increase in council tax of more than 3.5% with a reduction in its budget requirement of less than 7.5%. However, for most council tax payers, I very much expect this to be largely an academic exercise, because I believe that every local authority will freeze council tax in this difficult period.

The public will be helped in that process by increased transparency. I am pleased to announce to the House that every council in the country has now agreed to publish every amount over £500, so that their council tax payers can judge whether cuts in services or decisions about those services are just. I say “every council in the country”, but I mean “every council in the country with the exception of Nottingham”. The Labour deputy leader in Nottingham says that the council has

“no intention of publishing the data unless it is forced to do so by law.”

He says:

“We have said that we will publish accounts over £500 if it becomes a legal requirement to do so,”

before adding, rather peculiarly:

“We are happy for information to be”

transparent. Well, information cannot be transparent unless it is published. How come every council tax payer in England can look on their council’s website and see how it is spending their money except for those in Nottingham? Is there something peculiar about people in Nottingham that means that they cannot be trusted with that information?