Local Government Finance (England)

Paul Farrelly Excerpts

Wednesday 10th February 2016 Commons Chamber

[Greg Clark]

Indeed, and I pay tribute to my hon. Friend for the work that he does as MP for the Isle of Wight in bringing together all its leaders and councillors, regardless of party political affiliation, to promote its best interests. I look forward to visiting the island in his company to meet the councillors and officers.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

My county of Staffordshire makes the transitional grant list at No. 18, with just £5.6 million. Next door to me, deprived Stoke-on-Trent gets nothing, against £24.1 million for Surrey. Why, in this battle of the S’s, does the south, as ever, win out?

[Greg Clark]

It is very straightforward. The amount of transitional relief is in proportion to the reduction in revenue support grant, and so Staffordshire had less than Surrey. That is purely mathematical. I should have thought that the addition of nearly £3 million to the council’s budget would have been welcomed by council tax payers. In fact, I know that it has been.

--- Later in debate ---

[Mr Reed]

That is one of the many ways in which this settlement is deeply unfair to communities up and down the country.

[Paul Farrelly]

The situation regarding transitional help is even worse than my hon. Friend has described. The west midlands, Newcastle-under-Lyme, Stoke-on-Trent and Birmingham will all get nothing, but already well-rewarded Conservative counties and districts in the south, including St Albans, Sevenoaks and Surrey Heath—those are names to conjure with—are going to benefit. Does my hon. Friend think that that is right or fair?

[Mr Reed]

The figures speak for themselves: 85% to Tory councils and 5% to Labour councils. Everyone listening to this debate knows precisely what the Government are up to.

Turning back to the council tax rises that will be imposed over the next five years, what will people get for all the extra money the Tories will take off them? Will their streets will be swept more often? Will their bins be emptied more regularly? Will their library be saved, or will older people be looked after properly? No, because the Government have cut council funding so hard that the extra money they will take off people will not make up for what the Chancellor has cut.

Taxpayers will pay more, but they will get less in return. That is Tory value for money—tax hikes and service cuts, picking people’s pockets, while damaging the quality of life of every community up and down this country. That is the story of this funding settlement, which is why every Member should vote against it this evening: a 20% council tax hike designed in Downing Street; services cut to the bone; and £300 million hurled at a handful of wealthier areas in a desperate bid to buy off a Tory Back-Bench rebellion. People pay more but get less from these tax-hiking, pledge-breaking, self-serving Tories.