Local Government Funding

Tom Pursglove Excerpts

Wednesday 28th March 2018 Commons Chamber

[Sajid Javid]

We recognise that our support to councils means nothing without the right funding and resources. To that end, we published the final settlement for funding local authorities in England a month ago. The settlement equates to a real-terms increase in resources to local government over the next two years—once again, it is worth reminding the House that it was a real-terms increase that the Labour party voted against. This settlement forms part of a four-year settlement that gives English councils access to more than £200 billion in funding in the five years to 2020. That gives councils greater freedom and flexibility over the money they raise, in recognition of the fact that no one knows their local areas—the opportunities, challenges and pressures there—better. This settlement strikes a balance between relieving growing pressure on local government and ensuring that hard-pressed taxpayers do not face ever-increasing bills.

[Tom Pursglove (Corby) (Con)]

Does my right hon. Friend share my frustration that, as happens on police funding and the NHS, on local government Labour raises lots of concerns about a lack of funding and then votes against the solution? Does he think that in the upcoming local elections people should judge the Labour party on its deeds, not its words?

[Sajid Javid]

My hon. Friend makes an excellent point. We saw the same again recently on the cut in stamp duty; Labour talks about helping people to buy their first home, yet it voted against a cut in stamp duty. There are many such examples and it is incumbent on all of us in this House to make sure we know what Labour really stands for.

The settlement comes in the third year of a four-year deal that was accepted by 97% of councils in return for publishing efficiency plans. As I said earlier, many councils have made the most of the certainty and stability this offers to plan ahead and drive commendable efficiencies. We will continue to work with the sector to not just deliver better value for money, but really transform services. In all, this settlement answers calls from councils, over many years, for greater control over the money they raise and the tools to make this money go further. This is the approach we have taken across the board: listening to local authorities and responding to what we hear.