Oral Answers to Questions

Peter Dowd Excerpts

Tuesday 11th February 2020 Commons Chamber

[Rishi Sunak]

I am pleased to say that the Ministry of Housing, Communities and Local Government is undertaking a review of the funding formula for local government, and I am sure that Enfield Council has participated in that. There will be a formal consultation later this year, and I encourage the council to input its particular needs if those are not adequately captured by today’s formula. In the forthcoming financial year, Enfield can look forward to an almost 6% cash increase in the spending power it has available for its residents and communities.

[Peter Dowd (Bootle) (Lab)]

In addition to the Secretary of State for Housing, Communities and Local Government, has the Chief Secretary had any discussions with the representatives of Hyndburn, Burnley, Leigh, Blackpool South, Colne Valley, Durham North, Keighley, Stoke-on-Trent Central and North or Workington concerning the adequacy of the funding for the councils covering their constituencies?

[Rishi Sunak]

In my previous role I had many conversations with councils up and down the country. Indeed, in this job I take representations from the Local Government Association, the District Councils’ Network and the Core Cities consortium, among others. The point is that this will be an evidence-based formula that looks at the various needs of all authorities up and down the country. It is being done in partnership with independent academics to help us arrive at a formula that is fair for every part of the country and every local authority.

[Peter Dowd]

Clearly those discussions were not very productive, were they? I can tell hon. Members that, according to the LGA, the likely outcome is 6.6, 6.6, 6.5, 6.4, 6.2, 10, 10, 9 and 4. I am referring not to Olympic ice skating marks, but to the additional millions that will be lost respectively by the councils of the hon. Members I listed. In all, 37 councils of the 50 new Tory MPs—that is 70%—are set to lose millions under the Government’s so-called fair funding formula. Did the Chief Secretary mention that to his new colleagues, or has he been too busy keeping an eye on the potential job vacancies?

[Rishi Sunak]

The figures the hon. Gentleman refers to are pure speculation. The formula has not been concluded yet, so it is a bit difficult to talk about the conclusions in advance of that. There will be a consultation. Regardless of the type of area that any Member in this Parliament represents—rural or urban, north or south—it will be an evidence-based formula. All the various criteria that drive local government spend, whether it is rurality or deprivation, will be taken into account. All Members can have input into that process and can have confidence that the final formula will be fair and, importantly, evidence-based.