Local Government Finance Bill

Mike Freer Excerpts

Wednesday 31st October 2012 Commons Chamber

Those councils are caught in a dilemma once again. If they adopt the Secretary of State’s scheme, there will still be a huge funding gap, and how will it be met? It would be difficult under the Government’s scheme to meet it through cuts to council tax benefits for other claimants of working age, pensioners are protected and there is a limit on the council tax rises that local authorities can introduce, so the only alternative is cuts in services. Yet local authorities that are already managing to fund the shortfall will now get a windfall. Westminster will get £318,000 and West Oxfordshire £116,000. That is not transitional relief for local councils, it is emergency relief for Conservative councillors facing the electorate next May.

[Mike Freer (Finchley and Golders Green) (Con)]

May I help the shadow Minister? The way that Tameside could fund the shortfall is perhaps to dip into the £45 million increase in its reserves for the financial year 2011-12.