Local Government Finance

Sarah Olney Excerpts

Wednesday 17th December 2025 Commons Chamber

[Alison McGovern]

I most certainly agree. Having visited Hartlepool before—I hope to do so again—I know not just what it has been through, but what it has to offer. It has a fine champion in my hon. Friend as its MP, and I look forward to working with him and all my friends in Hartlepool to make good on the promise of the next generation in Hartlepool.

[Sarah Olney (Richmond Park) (LD)]

I am really concerned that the Government’s fair funding formula sells many London councils short, such as Richmond and Kingston in the area that I represent. The majority of London boroughs already have lower core spending power per capita than the England average, and several are among the lowest funded councils per capita in the country; additional cuts will impact those councils significantly. London has the highest rate of poverty in the country once housing costs are factored in. According to the Department for Work and Pensions, one in four Londoners lives in poverty, and rising council tax bills will impact those who are struggling the most. With that in mind, what assessment has the Minister made of the impact that rising council tax bills and cuts to services will have on those already living in poverty in London?

[Alison McGovern]

I thank the hon. Lady for her question. I might be a proud northerner, but I was once a councillor in a London borough, so I do not need to be told what poverty in London looks like. In my statement, I mentioned the possibilities for raising income that some councils have access to, and we want to work with local authorities on that. I am determined that we will not make this about geographical division in our country; we will make it a journey for all councils back towards financial sustainability. That is the objective, and I will happily work with the hon. Lady on that if that is what she wants to do.