Local Government Funding Settlement

Neil O'Brien Excerpts

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

First, I hope that the hon. Lady’s voice gets better quickly in time for Christmas. There will be a 75% business rates retention pilot in Newcastle in 2019-20, which will release additional funds to meet some of the pressures that she highlighted, and core spending power will increase further. We must also look at the devolution deals and all the support and investment being provided. I hope she sees the positive things in this statement that will address a number of the points that she highlighted.

[Neil O’Brien (Harborough) (Con)]

It is very welcome that Leicestershire will see a 4.4% increase in its core spending power next year, and it is extremely welcome that we will get a business rates retention pilot worth £13 million; I thank Ministers for meeting me to discuss that. However, the local government funding formula is opaque and unfair, and Leicestershire is unfairly under- funded. Can the Secretary of State assure me that he will continue to look at a fair funding formula and look closely at the Leicestershire model, for comprehensive reform?

[James Brokenshire]

I thank my hon. Friend for his active participation in our work on long-term funding and the fair funding review, and I thank Leicestershire for its participation in and support for that. He highlighted some of the announcements today, including the benefit of around £14 million for Leicestershire. He has been a good and active champion. We want people to be engaged in the fair funding review, to ensure that we learn from the evidence, so that we get this right.