Local Government Finance

Stephen Gilbert Excerpts

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

The hon. Lady will be pleased to know that Lewisham faces a drop in spending of 6.5% this year and 4.3% the following year. That does not strike me as draconian by any stretch of the imagination. She has made her reputation on shroud waving in this Chamber, but she should be addressing the needs of the people of Lewisham, who will continue to receive a high level of support from the central state to ensure reasonable provision in Lewisham.

[Stephen Gilbert (St Austell and Newquay) (LD)]

Does the Secretary of State agree that the ending of ring fencing announced today and the introduction of the Localism Bill mark an historic turning point for local government in our country? After 13 years of the previous Government micro-managing every part of local government, today marks the day when the coalition takes Whitehall out of the town hall.

[Mr Pickles]

I entirely agree with my hon. Friend. I am delighted that the reductions in Cornwall will be 3.9% next year and 2.2% the following year. He is entirely correct. No matter what the Opposition say, we are passing real, substantial powers to local authorities. We have reduced the number ring-fenced from 90 to about 10. The only substantial ones to note are the school grant and the national health service grant that starts in 2013. We have given local authorities a great deal of leeway and discretion. Given that the Local Government Association said that it would be perfectly capable of dealing with a 9% reduction in spending and that the overwhelming majority of councils are well below 8%, I am very surprised—as, no doubt, he is—that there is not more celebration across the Chamber.