Oral Answers to Questions

Debate between Michael Dugher and Lord Pickles

Monday 5th September 2011 Commons Chamber

[Mr Pickles]

LEPs are a partnership between local authorities and business, and we will be encouraging, though we will not be prescribing, local authorities to pool the business rates. I know that a number of authorities around Greater Manchester, west Yorkshire and particularly London are actively considering pooling arrangements, which has the advantage that poorer areas can benefit from richer areas.

[Michael Dugher (Barnsley East) (Lab)]

Barnsley council has estimated that, had the arrangements been in place last year, it would have seen a cut of more than £40 million last year. Does the Secretary of State think it is fair that poorer areas such as Barnsley may face pressures in delivering vital local public services, whereas wealthier areas may see their business rates receipts go through the roof?

[Mr Pickles]

If business rates go through the roof, they will be caught by the “disproportionate” rule and those sums will be taken away and distributed to poorer areas. This was designed to help councils such as Barnsley to retain local growth. The figures that I have seen—we received some figures from Barnsley during the recent settlement—did not appear to be entirely accurate. I am happy to work with the hon. Gentleman to get the best possible deal for Barnsley.

Local Government Finance

Debate between Michael Dugher and Lord Pickles

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

It has been a most dreadful experience, with the moves from the districts to the counties. One of the principal problems has been that a number of district authorities put in more money than the Government were actually giving them. At some point, some of that money was passported across to the counties, so that the districts registered a loss. I have tried to help by adopting a broad-brush approach of putting additional money into districts that are faced with a big loss in their spending power, but this is only a provisional assessment, and I will be listening carefully to what local authorities have to say on this issue.

[Michael Dugher (Barnsley East) (Lab)]

Does the Secretary of State think that Mr David Shakespeare should remain as leader of the Conservative group on the Local Government Association after his offensive remark last week, which has been reported in today’s newspapers, that constituents from poorer parts of the north—including areas such as my own—should

“replace the Romanians in the cherry orchards”?

[Mr Pickles]

I was not aware of Councillor Shakespeare’s remarks until the hon. Gentleman mentioned them. I will be seeing him first thing on Wednesday morning, and I shall ask him precisely what he meant by that.