Local Government Finance Debate

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Local Government Finance

Simon Hughes Excerpts
Wednesday 19th December 2012

(11 years, 5 months ago)

Commons Chamber
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Lord Pickles Portrait Mr Pickles
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No, that has not happened. There has been a significant shift away from Conservative authorities and towards Labour authorities. I note that the loss of spending power in the hon. Gentleman’s area is 1.8%, which is not materially greater than the national average, and that it is getting £2,416 per household. That does not suggest that a significant amount of money has gone away from his authority.

Simon Hughes Portrait Simon Hughes (Bermondsey and Old Southwark) (LD)
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In the past, local government settlements have underestimated the population of many authorities, including mine. Will the Secretary of State assure me that the figures that he has announced reflect need, deprivation and the real number of people in each council?

Lord Pickles Portrait Mr Pickles
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We use the best available statistics. It is amazing that Opposition Members are suggesting that they are not, because they are based on the old system. The extra money that is available relates to the old system. As we move further away from that system, we will ensure that poorer authorities are safeguarded, but we will also ensure—because these are relative changes—that they will benefit when they start to bring in new jobs and enthusiasm.

I hope that my right hon. Friend will allow me at this point to address a question that the right hon. Member for Leeds Central (Hilary Benn) asked, but which I neglected to answer. There are always two things in these equations that one needs to be certain about: the population numbers and the income that is likely to be generated through business rates. In the bundle of documents, there will be an assessment of that, which I think offers good news for local authorities.