Oral Answers to Questions

Debate between Steve Reed and Greg Clark

Monday 21st March 2016 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point. One of the reasons for the 100% retention of business rates is so that there is a direct connection between local authorities and their businesses. Of course, the best authorities, including his own, have always seen it as their duty and responsibility to promote and attract businesses. This approach means that they will get their reward for it.

[Mr Steve Reed (Croydon North) (Lab)]

With a former Cabinet Minister openly admitting that the Government are dividing Britain with unfair cuts, will the Secretary of State reconsider his divisive decision to cut the 10 poorest councils 23 times harder than the 10 richest?

[Greg Clark]

The hon. Gentleman is wrong. The decisions we have made to reduce spending would have been made by any party that came into power after the election. The difference is that our party has devolved powers so that local authorities can have greater concern for their own future. On the change we have made to the methodology, the Institute for Fiscal Studies has said that it is an improvement and that the system is fairer than that in previous years.

Local Government Finance (England)

Debate between Steve Reed and Greg Clark

Wednesday 10th February 2016 Commons Chamber

[Mr Reed]

My hon. Friend makes an important point. Actually, Surrey got more than £12 million. Surrey, which of course is where the Secretary of State just happens to be an MP, gets the most of any council. [Interruption.] The council next door to where the right hon. Gentleman happens to be an MP gets the most, with £24 million. Hampshire gets £19 million, Hertfordshire gets £14 million and the Prime Minister’s campaigning mum—admirable woman that she is—will be very pleased to see that Oxfordshire gets £9 million.

I am not criticising what those councils are getting. They did not deserve the scale of the cuts the Government had lined up for them, but then neither do Middlesbrough, Knowsley, Hull, Liverpool, Manchester, Birmingham, Darlington and all the other more deprived areas that have suffered far deeper cuts in the past six years but have been offered absolutely no help whatever.

[Greg Clark]

I suggest gently to the hon. Gentleman that if he aspires to be a Local Government Minister, a little geography might help. He is welcome to come to Tunbridge Wells. I would be happy to show him that delightful place. Since we are talking about geography, I am sure he is familiar with Durham County Council. In its submission to the consultation, it said:

“In our view, no authority can now claim that this approach is ‘unfair’”.

Does the hon. Gentleman agree?

[Mr Reed]

I spoke to at least 20 or 30 council leaders over the weekend, at the Labour party’s local government conference, and not a single one thought the right hon. Gentleman’s approach was fair, and I am afraid that leaders of Tory councils agree with me, not him.

--- Later in debate ---

[Mr Reed]

My hon. Friend makes my point for me. The distribution of the money is desperately unfair.

[Greg Clark]

The hon. Member for City of Durham (Dr Blackman-Woods) asked a very reasonable question. The quote came from a document headed: “Durham County Council response to the 2016/17 Local Government Finance Settlement Consultation.” It states:

“The new approach is fairer and should never be reversed.”

[Mr Reed]

That is a misinterpretation of what Labour council leaders are saying. However much the Conservatives think this pre-council elections sweetener will work, the Rural Services Network is clear that this political bung will not change the dire financial crisis facing even rural councils over the next four years.

--- Later in debate ---

[Mr Reed]

I want to make some progress, because we are short of time.

[Greg Clark]

rose—

[Mr Reed]

No, I will not give way again. I will continue.

Some areas represented by Tory MPs, such as Stockton on Tees and Nuneaton, get nothing from the additional money. Those MPs need to ask themselves what their voters will think of MPs who vote for deep cuts and council tax rises for their own areas but throw millions at wealthier areas such as Tunbridge Wells.

[Greg Clark]

rose—

[Mr Reed]

I will make some progress.

[Greg Clark]

rose—

[Mr Reed]

I have given way to the Secretary of State twice, and now I am going to continue.

I turn now to council tax. On Monday, the Secretary of State denied he had written to councils, telling them to put up council tax. Indeed, it was not the Secretary of State who wrote that; it was the Under-Secretary of State for Communities and Local Government, the hon. Member for Nuneaton (Mr Jones). [Interruption.]

Oral Answers to Questions

Debate between Steve Reed and Greg Clark

Monday 8th February 2016 Commons Chamber

[Greg Clark]

My hon. Friend knows that we are moving to a world in which councils will be funded by council tax and business rates. It is essential that the formula underpinning that is fair to all types of authority. That has been very clear in representations that he and others have made.

[Mr Steve Reed (Croydon North) (Lab)]

The Tory election manifesto promised to keep council tax low, so will the Secretary of State explain to the House why he has just written to town halls up and down the country saying that he expects them to force council tax up by more than 20% over the next four years?

[Greg Clark]

I have written no such letter. I remind the hon. Gentleman that council tax doubled under the previous Government. On all the forecasts that we have made, it will be lower in real terms than it was at the beginning of the last Parliament.

Oral Answers to Questions

Debate between Steve Reed and Greg Clark

Monday 14th December 2015 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. In advance of the spending review I had a communication from the Local Government Association estimating that the gap, if unaddressed, would be £2.9 billion. In the spending review settlement the Chancellor allocated £3.5 billion, to reflect the need to help our elderly population. That was a significant result for local government. As we come to make the settlement for individual authorities, we will ensure that that is in the hands of local people.

[Mr Steve Reed (Croydon North) (Lab)]

At least 340 unaccompanied child asylum seekers disappeared in this country between January and September, which is twice as many as did so in the calendar year before. That leaves them at terrifying risk of abuse, sexual exploitation and radicalisation. Councils say that funding cuts mean they do not have the resources properly to protect these incredibly vulnerable children, so why are the Government going ahead with a further cut to the unaccompanied child asylum seeker grant?

[Greg Clark]

These are important statutory responsibilities of local authorities and it is vital that they discharge them. Through the spending review settlement, the Chancellor has made available funds to local government that make sure that the cash settlement by the end of the spending review period is the same as it is at the beginning. That is a positive result for local government.