Local Government Finance (England)

Debate between Steve Rotheram and Hilary Benn

Wednesday 13th February 2013 Commons Chamber

[Hilary Benn]

My hon. Friend makes the point about the circumstances his local authorities face extremely forcefully.

What does all this mean for the future financial sustainability of local government? The National Audit Office recently published a report that makes it clear that cuts to councils budgets are having a direct impact on front-line services, even though the former housing Minister went before the Select Committee, I think in 2010, and said that there should not need to be any cuts in front-line services. The Chair of the Public Accounts Committee, my right hon. Friend the Member for Barking (Margaret Hodge) was very direct in her response. She said of the findings from the National Audit Office on local authorities:

“I am alarmed to hear that 12% are now at risk of being unable to balance their books in the future, according to local auditors, with potentially disastrous consequences.”

It is worth reflecting on those words: more than one in ten councils are now at risk of being unable to balance their books in the future—that is what the NAO says. The Secretary of State may say that the graph of doom is scaremongering on the part of the LGA. Will he also say that this is scaremongering on the part of the NAO? If he does not say that, what is the Government’s answer to the picture unveiled by the NAO?

[Steve Rotheram (Liverpool, Walton) (Lab)]

The mayor of Liverpool has invited the Secretary of State to our city to have a look at the books for himself, so that he can point to where the city council is not making the efficiency savings the Government believe it should be making. Does my right hon. Friend believe that the Secretary of State should take up that challenge?

[Hilary Benn]

I very much hope that the Secretary of State is willing to accept that challenge; it would be good for him to see impact of the cuts.