Local Government Finance

John Bercow Excerpts

Wednesday 18th December 2013 Commons Chamber

[Brandon Lewis]

I am somewhat surprised; I had been expecting the right hon. Gentleman to outline for the first time these several years exactly where Labour’s promised £52 billion of cuts would come from.

In reality, we have heard nothing new this morning. This statement comes after last year’s statement set out a two-year settlement for local authorities. In fact, whereas more than 3% had been predicted, this year local authorities will get a 2.9% reduction, falling to below 2% next year. So it is a good news day for local government. [Interruption.] The right hon. Gentleman’s comments did not match up with the facts of life. The Audit Commission’s recent report outlined how local authorities were coping well with the changes. [Interruption.]

[Mr Speaker]

Order. Mr Ronnie Campbell—[Interruption.] Order. Your apprenticeship to become a statesman will never be completed at this rate. I know you are a bit over-ebullient, but you must calm yourself. [Interruption.] Calm yourself. I say two things, if I may: first, Members must not shout at the Minister, and secondly, I think the Minister was deploying a rhetorical device, but he will be aware that on these occasions, a question is put to Ministers; it is not an occasion for another party to set out policy. That is not the nature of the urgent question procedure, but I know, from his wry smile, that the Minister is well aware of that important fact.

[Brandon Lewis]

Thank you, Mr Speaker. Your point is well made. I think the hon. Member for Blyth Valley (Mr Campbell) must be excited about the local government settlement, as we all are today—it is an exciting day for local government.

If the right hon. Gentleman looks at the figures, he will see that we have gone even further this year to protect the most difficult areas and those councils left abandoned by the last Labour Government through their reduction in the working neighbourhood fund. I am thinking of councils such as my local authority of Great Yarmouth and others such as Pendle and Hastings, which they left with massive black holes that this Government have filled with the transitional grant. Those councils will be protected even further this year with a reduction of no more than 2.9%, which is good news for local authorities working hard to deliver good front-line services—services that Labour left hanging on a ledge.

The right hon. Gentleman referred to councils such as Liverpool. I gently remind him that Liverpool and Newcastle are similar in being among the best-supported councils in the country and having the highest spending power per dwelling. For example, Newcastle receives £2,400 per dwelling, which is about £900 more than areas such as Windsor and Maidenhead. I think that he and his colleagues should look at the figures. [Interruption.]

[Mr Speaker]

We will get through these matters. I call Mr Philip Hollobone.

[Mr Philip Hollobone (Kettering) (Con)]

Under the leadership of councillor Russell Roberts, Kettering borough council, of which I have the privilege to be a member, has for the past three years offered a policy of “triple zero”: no cuts to front-line services, no cuts to voluntary grants and no increase in council tax. The Minister will know, because he has twice visited Kettering borough council, that it is an exemplary local authority. Does the message not go out that if Kettering can do this, other councils, if they really want to, can also do it?

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[Mr Ronnie Campbell (Blyth Valley) (Lab)]

rose—

[Mr Speaker]

The hon. Member for Blyth Valley (Mr Campbell) has often been heard from his seat; it is now time that he was heard on his feet. I call Mr Ronnie Campbell.

[Mr Campbell]

Thank you, Mr Speaker, and a merry Christmas to you.

Is the Minister aware that in Northumberland, where I come from, we have had to cut £30 million this year and £60 million last year, and we are sacking workers and cutting social services, while education has been cut right down to the bone—and there is no money left? The Minister is living in cloud cuckoo land.

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[Neil Parish (Tiverton and Honiton) (Con)]

I very much back the rural fair share campaign and I welcome the money that has come forward. Given that it is Christmas, I would have liked it to be a little more generous, but can you outline exactly how much extra you are going to give to rural authorities that you would not have given otherwise?

[Mr Speaker]

I am giving nothing extra at all, but the Minister might do. We will see.

[Brandon Lewis]

My hon. Friend has participated in a strong and ongoing campaign with colleagues across the House—including at least one Opposition Front Bencher—about the gap between rural and urban areas. We listened last year and made a one-off payment. This year we have provided increases, which will be rolled into the baseline. My hon. Friend will see that from the figures in the Library.

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[Several hon. Members]

rose—

[Mr Speaker]

What an assortment of riches! I call Mr John Stevenson.

[John Stevenson (Carlisle) (Con)]

Cumbria has six district councils and one county council for half a million people. Many Cumbrians believe that the councils should merge in order to save money and improve local services. Were the councils to make such an approach to the Government, would it be favourably received?

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[Several hon. Members]

rose—

[Mr Speaker]

The hon. Member for Reading East (Mr Wilson) has only just started bobbing, but I am assuming that he was here at the start.

[Mr Rob Wilson (Reading East) (Con)]

Thank you, Mr Speaker. Labour councils such as Reading are again increasing the burden of council tax on families this year. Does the Minister agree that, during these challenging times, any rise in council tax should be put to a local authority referendum?

--- Later in debate ---

[Steve Rotheram]

I will pay for it.

[Mr Speaker]

Order. The financial generosity of the hon. Gentleman is duly noted, but it is somewhat unparliamentary for him to chunter from a sedentary position—[Interruption.] Order. His point has been heard—[Interruption.] Order. I was being good-humoured towards the hon. Gentleman, but I am sorry that he is not showing good humour in the festive season. [Interruption.] Order. I am not debating the point with the hon. Gentleman; I am simply telling him what the situation is. He has asked his question, and he must now have the courtesy to listen to the response. He can make his own evaluation of that response, of course.

[Brandon Lewis]

I am sure that the mayor of Liverpool will want to talk to us and make his case during the consultation procedure. I met representatives of the core cities last year, and I am happy to meet any individuals. I must also point out to the hon. Gentleman that Liverpool gets one of the highest amounts of spending power per dwelling in the country and that, on top of that, it gets regional growth fund money, growing places fund money and a city deal, all of which are helping Liverpool to be the town that it should be.

[Mr Jim Cunningham (Coventry South) (Lab)]

The Minister’s justifications for inflicting cuts on local government sound like something that we would expect to hear from the North Korean regime. When Ministers start talking about cutting back-room staff, we know right away that they have no answers. More importantly, Coventry will have to find between 15% and 20% cuts over the next three years. Translated one way, that means more than 1,000 jobs. Translated another way, it means that we would have to find £48 million.

[Mr Speaker]

I have to say politely to the hon. Gentleman that I have struggled to find the question mark at the end of his observation. Perhaps he was asking a rhetorical question. If the Minister wants to reply, he is welcome to do so, but he is under no obligation. No? Fair enough.

[Nic Dakin (Scunthorpe) (Lab)]

The Minister says that this is a really good day for local government, following previous good settlements. Will he explain why 64 Conservative councils have refused the offer of a freeze and are putting up their council tax?