Local Government Finance
Debate between Baroness Williams of Trafford and Baroness Scott of Bybrook
Baroness Scott of Bybrook (Con)
My Lords, I thank the Minister for all the work that has been done on behalf of local government. I have been in local government for 20 years and cannot remember a time when a Government have actually listened to local government, as far as the settlement goes, and changed their mind—so my thanks goes to the team for doing that.
The transitional grant was critical to councils, particularly those with social care responsibility. They needed that transitional fund to plan for the future. Together with the undertaking to review what the needs assessment formula will look like as we move from government grant to local resourcing of councils, this, too, is extremely welcome.
For me and for many others in rural authorities, we have won the argument over the costs of providing, in particular, social care services in large, sparse rural areas, and I thank the Minister for that. A lot of work has been done in both Houses to lobby the Government for this settlement and I thank them and the Local Government Association. I also assure the Minister that, as ever, local government will continue to be as efficient a part of government as it is now and will always be there to deliver those important services to the residents we represent.
What is meant by the “most economical” authorities? These are the authorities that will be allowed to make a de minimis charge of £5 on council tax without a referendum, but it is not made clear what the most economical authorities are.
Baroness Williams of Trafford
I thank my noble friend for making some very constructive points, particularly about the issues that rural authorities face with things such as the delivery of social care in sparsely populated areas. The rural services delivery grant will be £60.5 million this year and £30 million next year, compared to the provisional settlement. That will be for all councils where 2% is less than £5—whatever is the greater—and will apply to all shire districts.