Oral Answers to Questions

Meg Hillier Excerpts

Monday 24th February 2020 Commons Chamber

[Luke Hall]

Of course, it is for local authorities to decide their individual local priorities, but my right hon. Friend is right to highlight the fact that the real-terms increase in core spending power for councils up and down the country means that money can be invested in the services that local authorities need the most.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

The Minister said that councils are responsible for their own decisions. He is right on one level, but many local authorities are increasingly over-exposing themselves to certain commercial sectors—the Public Accounts Committee has examined this in depth—putting at risk council tax payers and the fabric of local government in their areas. He will know that some councils are at risk right now, so what is his Department doing to ensure that we are protecting council tax payers where local government is not doing so well?

[Luke Hall]

The hon. Lady raises a serious point about the effectiveness of some types of spending. We are working with the Treasury to review the Public Works Loan Board rates and flexibilities that local authorities have, and we will ensure that we keep her updated in due course on the progress of that review.