Local Government Finance

Roberta Blackman-Woods Excerpts

Monday 18th July 2011 Commons Chamber

[Mr Pickles]

My hon. Friend raises an important point. She will find waiting for her in the Vote Office a consultation document dealing exactly and precisely with the questions that she raises. It is important to understand that there will be no cliff edge in year two. We need to get away from the idea of dependency and the continuous search for the bottom—whereby local authorities try to outdo each other in saying how bad things are. We should be able to celebrate the places we live in, show things off with pride and give local communities the benefits of growth.

[Roberta Blackman-Woods (City of Durham) (Lab)]

The Secretary of State will know that the current system of business rates ensures fairness by redistributing income, taking into account levels of need and the differing abilities of local authorities to raise council tax. Will he assure the House this afternoon that authorities such as County Durham that have high levels of need will not lose out under this proposals, beyond year one, to the tune of about £100 million?

[Mr Pickles]

I am delighted to report to the hon. Lady that County Durham and the north-east have enjoyed rates of growth in business rates above the English average. From what she said, one might think that somehow councils were in general agreement, but if she looks at some of the submissions that we have received she will see—I will take two as examples—that the Association of North East Councils argues that the north-east received a worse deal than the south-east and that deprivation had risen more in the north-east than in London, whereas Brighton and Hove city council disagrees with the area-cost adjustment for Cumbria, Wolverhampton, Wigan, Liverpool and Oldham, but not for its own area. We cannot have a situation where one part of the country is saying, “Give me more money, and take it from them.” What we need is a system of equality that rewards entrepreneurialism and gets local authorities off their knees.