Rehman Chishti
Main Page: Rehman Chishti (Conservative - Gillingham and Rainham)We will have the spending review in just a few weeks’ time, of course, but the hon. Lady needs to look at the starting point as well and understand that the amount of money spent per household in Liverpool was among the highest in the country. All authorities, however, should be making sure that they have got the right management cost structures and are spending money on front-line services, not back-office costs.
22. In this year’s budget Medway council is using half of its unallocated reserves for a new development fund to support future regeneration. What are the Government doing to encourage local authorities to use their reserves to support local communities?
My hon. Friend makes a good point. Authorities that are looking carefully at what to do with their reserves are doing the right thing. It is right that they should keep reasonable reserves, but they should not be at too high a level, as they are there to be used. It is absolutely right that authorities look at using their reserves to invest in their communities, to the benefit of their communities both now and in the future.