Council Tax (Benefit Claimants)

Debate between Steve McCabe and Roger Gale

Tuesday 29th January 2013 Westminster Hall

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

The hon. Gentleman’s words may come back to haunt him. Most people in Birmingham expect their MPs to stand up for them. If I have understood the hon. Gentleman’s position, he is trying to suggest that Birmingham council is deliberately over-charging the poor. In doing that, he is managing completely to ignore the fact that it his Government who are cutting council tax support.

The hon. Gentleman seems to be advocating that Birmingham should accept the transitional grant. I have just read the Institute for Fiscal Studies report. Will he tell me whether he accepts that this is a one-off, one-year grant that is designed to persuade councils not to cut council tax support by as much as the Government are cutting council tax funding? Despite his maverick use of figures, does not it ultimately mean that further services will be cut to make up the shortfall? If that is his position, why does not he tell people?

[Sir Roger Gale (in the Chair)]

Order. There is a limit to what I am prepared to permit.

[John Hemming]

I thank the hon. Gentleman for his questions. On the first one, which is fighting for the city, the right hon. Member for Wentworth and Dearne (John Healey) and I campaigned considerably, including in this Chamber, for an increase in fire funding, because the proposals from the Government were unfair. The Government indeed changed those proposals, and it is now accepted that the new proposals on fire funding are completely fair. However, when the city does relatively well out of the funding settlement, I will have no credibility at all if I go around whinging about it, which is what Sir Albert Bore does whatever happens. On the first point, of course I will fight for the city, but when we get a reasonably good deal I will say just that, because it is foolish to complain about things when we are actually doing quite well.

I accept that I have gone through a lot of figures. I can give hon. Members the spreadsheets if they want to see them. If the Government grant is £2.1 million, it is true that £1.3 million is needed from the general fund. However, if houses are built and people move into the city, there is more council tax. The estimated figure for next year is £1.4 million more. The Government grant leaves a shortfall of £1.3 million. If we then use the £1.4 million of extra council tax to prevent ourselves from having to pay the poor, we are far better off.