Local Government Finance Settlement

Richard Burden Excerpts

Tuesday 19th December 2017 Commons Chamber

[Sajid Javid]

I am pleased that my hon. Friend has raised this issue. I recognise the good work that so many councils do to look after unaccompanied asylum seeking children, who are some of the most vulnerable people in our society. One thing I am doing today is making an additional £19 million available for next year to help the local authorities most affected to help some of the most vulnerable people.

[Richard Burden (Birmingham, Northfield) (Lab)]

The modification of the 2016-17 allocation formula to take account of councils’ ability to raise council tax was at least the start of an acknowledgement that councils with the highest levels of deprivation should not face the biggest cuts. Nevertheless, will the Secretary of State take it from me that the failure to address that issue in the previous two years has meant that Birmingham is now being short-changed to the tune of £100 million? What is there in his statement to address that and avoid even more swingeing cuts hitting children’s services and adult social care in my city?

[Sajid Javid]

The hon. Gentleman’s central point is that there has to be a recognition that different councils have a different council tax base, and so are affected in different ways when they make a percentage change to that council tax. In the case of Birmingham and many other local authorities in which the council tax base might be relatively low, that is recognised so that with respect to, for example, adult social care, when new funding is allocated, including the additional £2 billion announced earlier this year, the improved better care fund makes sure that the fundraising powers that exist locally are taken into account.