Oral Answers to Questions

Rushanara Ali Excerpts

Tuesday 27th February 2018 Commons Chamber

The Chancellor of the Exchequer was asked—

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

1. What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on trends in the level of funding for local authorities since 2010.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

2. What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on trends in the level of funding for local authorities since 2010.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

It is right that more of our money that is spent locally is raised locally. In 2010, councils were 80% dependent on Government grants. By 2020, they will largely be funded by council tax and other local revenues.

[Rushanara Ali]

Local councils have faced devastating cuts. The Institute for Fiscal Studies estimates that, between 2010 and 2020, councils will have had their direct funding cut by 79%. In Tower Hamlets, we have lost £138 million through budget cuts since 2010. With one of the Conservative party’s own councils going bust, will the Minister now finally commit to funding local authorities properly, so that they can provide vital services to their communities?

[Elizabeth Truss]

As I have pointed out, it is right that we rebalance council spending from central Government grants to locally raised taxes, to help to keep councils accountable. We have seen councils up and down the country finding innovative ways of working, such as sharing back-office services and doing things such as installing wi-fi and improving waste collection. We have also seen Labour councils wasting money. For example, Momentum-supported Birmingham City Council bin strikes have cost the taxpayer £40,000 a day, and Reading—