Local Government Funding Settlement

Robert Neill Excerpts

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

I am grateful to the hon. Gentleman for his comments. I am pleased that he recognises the contribution that city deals have made in Scotland, the contribution that the UK Government are making in Scotland to ensure that that sense of growth and opportunity is felt very firmly, and how we contribute in that way to see that that is felt throughout our United Kingdom. I am sorry that, in some way, he does not fully appreciate and recognise the contribution that we are making. On the point that he makes more broadly in relation to universal credit, obviously, care and attention has been given to this matter by my colleagues, who I am sure will listen to the points that he makes. However, I say to him that the Scottish Government themselves have flexibility over welfare policy and over what they can do to deal with some of the issues and concerns that he has highlighted, and therefore that they have responsibility in that regard.

[Robert Neill (Bromley and Chislehurst) (Con)]

I welcome the change and elimination of negative revenue support grant; that is most important. Will the Secretary of State confirm also that outer London boroughs such as Bromley will in fact profit as a result of the increases that he has announced, but, when the former is revised, will he also bear in mind the need to take into account those authorities that have a track record of historical efficiency and low cost?

[James Brokenshire]

As my hon. Friend has highlighted, we do intend to directly eliminate the £152.9 million negative revenue support grant using forgone business rates. That will prevent any local authority from being subject to a downward adjustment to its business rates tariffs and top-ups that could act as a disincentive for growth. I am sure that he will look at the detail of this. Obviously, we have the business rates retention pilots of 75% for London and that long-term sustainable funding arrangement for local government.