Thursday 14th November 2024

(2 days, 14 hours ago)

Commons Chamber
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Matthew Pennycook Portrait Matthew Pennycook
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I am more than happy to commit the Local Government Minister to a meeting with my hon. Friend.

Richard Holden Portrait Mr Richard Holden (Basildon and Billericay) (Con)
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During Prime Minister’s questions yesterday, the Government accepted that they were giving councils a maximum of £600 million, but the Local Government Association has said that there is £2.4 billion worth of pressure. Does the Minister accept that councils will have to increase their tax by about £1.8 billion to fill the gap between what the Government are offering them and what they need to provide local services?

Matthew Pennycook Portrait Matthew Pennycook
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As I have made clear, we do not recognise the £2.4 billion figure. It fails to take into account increases that I have already mentioned, such as the £300 million increase in business rates income and the £300 million increase in income from new, additional houses. The hon. Gentleman is absolutely right that we expect council tax to raise £1.8 billion in 2025-26, but that is in line with the previous Government’s spending plans and baked into the OBR forecast as of March 2024.