Council Tax
Debate between Matthew Pennycook and Richard Holden(1 week ago)
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Matthew Pennycook
I am more than happy to commit the Local Government Minister to a meeting with my hon. Friend.
Mr Richard Holden (Basildon and Billericay) (Con)
During Prime Minister’s questions yesterday, the Government accepted that they were giving councils a maximum of £600 million, but the Local Government Association has said that there is £2.4 billion worth of pressure. Does the Minister accept that councils will have to increase their tax by about £1.8 billion to fill the gap between what the Government are offering them and what they need to provide local services?
Matthew Pennycook
As I have made clear, we do not recognise the £2.4 billion figure. It fails to take into account increases that I have already mentioned, such as the £300 million increase in business rates income and the £300 million increase in income from new, additional houses. The hon. Gentleman is absolutely right that we expect council tax to raise £1.8 billion in 2025-26, but that is in line with the previous Government’s spending plans and baked into the OBR forecast as of March 2024.
Oral Answers to Questions
Debate between Matthew Pennycook and Richard Holden(2 months, 2 weeks ago)
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Matthew Pennycook
My hon. Friend is correct. The Government have today published a formal response to that consultation, setting out precisely why we will not be taking those proposals forward. It is important that we allocate social housing fairly and efficiently. The proposals put forward by the previous Government were deeply flawed. As respondents to the consultation made clear, they would not only fail to improve how social housing is allocated, but cost taxpayers a fortune, swell the number of people in expensive temporary accommodation and increase the risk of harm to the public. The only way to meet the demand for genuinely affordable social rented homes is to build more of them, which is precisely what we intend to do.
Mr Richard Holden (Basildon and Billericay) (Con)
Obviously, social housing is important, and we want to see it in the right places across the country. I cannot understand why this Government are now proposing to reduce the number of new homes in London by 17,000 a year and in areas all around London—including counties such as Essex—by 18,000 a year. Surely one of the most important things that we need to do is increase that supply of social housing, particularly in London.
Matthew Pennycook
I think the hon. Gentleman is referring to the changes to the national planning policy framework rather than to social housing specifically. We have made those changes proposed to the standard method. They will give London a realistic, but achievable, new target. [Interruption.] Let me explain why. The way that the previous Government applied the urban uplift unfairly to London gave it an unrealistic, fantastical target that it could not meet. We will ensure that we are pushing the mayor on a realistic, but achievable one.