Local Government Finance (England)

Steve Baker Excerpts

Monday 24th February 2020 Commons Chamber

[Robert Jenrick]

I am not familiar with those figures, but I am sure that the hon. Gentleman will welcome the fact that through this settlement, we are providing a 4.4% real-terms increase in spending for councils, while keeping council tax as low as we can.

I am putting forward a controlled package of council tax referendum principles based around a core increase of 2%, with a flexibility of up to £5 for shire district councils. This strikes the right balance between giving local authorities flexibility to meet the needs of their local area and empowering local residents to veto excessive increases.

As we have heard in a number of interventions, we are also fundamentally changing how we allocate council funding, to deliver a fairer, more up-to-date, more transparent way of allocating taxpayers’ money. It must be right to explore how we can bring the increasingly convoluted and outdated funding formula into the 21st century, and how we can better link the funding of public services to the needs of individual local authorities. There is no question but that the fair funding review is a substantial piece of work. There are many different views on the way forward, which raise challenging questions that we will need to work through in the months ahead. We plan to consult widely on our proposals this spring, and to listen to the views that we receive. In that spirit, I hope that we in the House can work together to build consensus, and move forward to a better funding formula.

[Mr Steve Baker (Wycombe) (Con)]

I am grateful to my right hon. Friend for mentioning the pockets of deprivation in shire counties; I could certainly take him to some in High Wycombe. He talks about fair funding; those of us on the fringes of our major cities have additional pressures, as people who need additional services come to live in our area. Together with the Chancellor, will he consider how we can ensure that the fringes of not just London, but all our major cities, are equipped to deal with the extra pressures that they face?

[Robert Jenrick]

My hon. Friend makes an important point. Knowing something of his constituency, I think it is the perfect example of a part of the country where there is great affluence, but also significant pockets of deprivation. We need to ensure that funding for local authorities that provide public services is based on the actual needs of the community, not a formula dreamed up many years ago.