Local Government Finance

Rory Stewart Excerpts

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

I made a very pleasant visit to Liverpool earlier this year and had the opportunity to meet and spend time with Councillor Joe Anderson. He told me that he felt that his chief executive and senior staff were overpaid. I commend to the hon. Lady the very brave decision that he has taken today to reduce his top management of 74 by 48. By just removing 48 staff and those among the top officers taking pay cuts, £4.25 million has been saved. That is an indication of the determination of Liverpool. I am delighted to tell her that giving a new damping grant to Liverpool has meant that we have saved an extra £15 million on top of that.

[Rory Stewart (Penrith and The Border) (Con)]

Given the unique problems faced by rural areas and the incredible creativity and energy with which the Eden valley and other communities are overcoming their problems, will the Secretary of State please reassure us about the impact that these decisions will have on rural communities?

[Mr Pickles]

One of the great difficulties that I have alluded to is trying to balance relative need with sparsity, which is extremely difficult. I was very keen to pass the additional money available for adult social care into those communities. That has meant that some district councils—by their nature, because they are not social services departments—have faced a quite considerable reduction. That is why we have moved additional money across from my Department to ensure that those communities are not put at a disadvantage. I admit to my hon. Friend that this is a stop-gap, but I hope that within two years we will be producing a much fairer, much more transparent and much more honest policy. We are operating on the basis of an inherited policy, but frankly it was not worth the candle to dismantle it just for two years.