Oral Answers to Questions
Debate between Mike Kane and Kris Hopkins
Mike Kane (Wythenshawe and Sale East) (Lab)
3. What assessment he has made of the effect of local government funding changes on services since May 2010.
The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)
Since 2010 councils have set balanced budgets and council tax has fallen by 11% in real terms. Public satisfaction with local services has been maintained and we have increased transparency so that residents can hold councils to account.
Mike Kane
The Public Accounts Committee report in January looking into the sustainability of local government finance clearly stated that the 10 most deprived areas in England and Wales have had cuts 10 times greater than those of the 10 wealthiest areas. Does that prove that we are not all in this together?
Kris Hopkins
Both the National Audit Office and the PAC report noted that all councils had managed to balance their budgets, and we should note that the 10% most deprived councils in the country receive 40% more than the most wealthy councils.
Oral Answers to Questions
Debate between Mike Kane and Kris Hopkins
Toby Perkins (Chesterfield) (Lab)
16. What assessment he has made of the effect of real-terms cumulative changes in local authority spending power on services in communities with the greatest needs since 2010-11.
The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)
Since 2010, we have delivered fair local government finance settlements to every part of the country. All councils have balanced their budgets, and most have reduced council tax in real terms and maintained public satisfaction with services. Councils facing the highest demand for services continue to receive more funding and have higher spending than less deprived authorities.
Mike Kane
According to the BBC, Greater Manchester councils are preparing for another cut of £250 million this year, which is in addition to the £1.2 billion taken out of their budgets since 2010. Given the Public Accounts Committee’s conclusion that the Department for Communities and Local Government had limited understanding of the impact of the cuts on services, are Ministers not out of touch?
Kris Hopkins
Every part of Government has had to respond to the challenges left by the previous Administration. It should be noted that now each authority does not have to rely just on its grant; it has the ability to raise money itself. Manchester has been very successful at that, securing many millions of pounds through its business tax retention and the new homes bonus. Manchester has also been very successful in securing a multi-million-pound growth deal.