Oral Answers to Questions

Debate between James Heappey and Sajid Javid

Monday 27th February 2017 Commons Chamber

[James Heappey (Wells) (Con)]

15. What plans he has to revise the needs-based funding formula for local government finance.

[The Secretary of State for Communities and Local Government (Sajid Javid)]

As it is nearly a decade since the current needs assessment formula was looked at thoroughly, we are currently undertaking a fair funding review to consider how to introduce a more up-to-date, more transparent and fairer formula.

[James Heappey]

I warmly welcome the review that the Secretary of State has announced. I share his enthusiasm for it, and that of councils in Somerset. What will be its likely structure, and what is the minimum time that it may take to complete?

[Sajid Javid]

As my hon. Friend will know, I was in Somerset only last week, helping to launch the excellent election manifesto for that great county, and fair funding was one of the issues that came up. Our plan is that the new formula will determine the baseline funding allocations as we implement the 100% business rates retention programme planned for 2019-20.

Local Government Finance

Debate between James Heappey and Sajid Javid

Wednesday 22nd February 2017 Commons Chamber

[Sajid Javid]

The hon. Gentleman may not be aware that although the better care fund picks up over time, it has already kicked in. I think it represents £105 million this year, and it rises next year and in the following years. However, he makes an important point; I listen carefully to what he says, especially given that he is Chair of the Select Committee that oversees my Department. I hope he will agree that as the better care fund comes in and builds up, it will start to make a bigger difference.

[James Heappey (Wells) (Con)]

Will the Secretary of State confirm that all additional funds that have been and will be committed for the purposes of adult social care will be allocated according to the needs-based formula, not the existing local government formula, so that things such as sparsity of population and a deteriorating demographic will truly be taken into account?

[Sajid Javid]

I can confirm that the way in which the funding has been allocated overall is based on relative needs. I have mentioned, for example, the new £240 million fund that the settlement sets up for adult social care. That is all based on need as well.

My hon. Friend has been a passionate advocate of ensuring that we think of all parts of our country, including the more rural parts, that face particular challenges. I have had many constructive discussions with him and will continue to do so. He has often highlighted that we must make sure that those needs-based formulae, whether for adult social care or for funding for local authorities more generally, are updated and modern. That is something that I am attempting to do.

--- Later in debate ---

[Sajid Javid]

I can confirm that that is exactly the kind of thing that we need to look at more closely. If my hon. Friend allows me to, I will give a bit more detail about the kinds of things that I am keen to ensure are covered by the review.

I have been privileged to hear the views of colleagues from across the House, many of whom have direct experience of service in local government. Various themes have emerged. Foremost among them is the need to ensure that the formula works for all local authorities, wherever they are. Rural councils in particular have unique needs that must be met, and councils have been clear that they want to see action sooner, rather than later. I am happy to confirm what we have previously said on the issue. We will make the changes to the fastest possible parliamentary timetable, and we aim to implement new baselines for every authority in 2019-20, following Royal Assent of the Local Government Finance Bill, the necessary secondary legislation and the completion of the fair funding review. I will update the House as soon as I have further details to share.

[James Heappey]

I acknowledge that my right hon. Friend said that this will happen in the fastest time that the parliamentary process will allow. May I invite him to be a little clearer on when he anticipates that means the review will have been completed and committed to?

[Sajid Javid]

Again, I thank my hon. Friend for the role he has played in making sure that this issue is looked at properly. As he will know, the commitment we have made on business rates retention, which we want to start in the financial year 2019-20, means that there will be a requirement to have the proper baseline set for all local authorities before that system can be properly brought in. I hope that that gives him some comfort on the timing that is necessary given that the two things—the fair funding review and the business rates retention plan—are very much interlinked. There will be various staging posts on the way. As always, I am more than happy to sit down with him to take him through those and discuss this further.

Trade Union Bill

Debate between James Heappey and Sajid Javid

Monday 14th September 2015 Commons Chamber

[Sajid Javid]

Then this will make it even more transparent. If the hon. Lady looks at the changes, she should be able to agree with them.

[James Heappey (Wells) (Con)]

Is it not an outrage that union officials can conduct union business on public time? Will the Secretary of State confirm that the first year of the Government’s controls on facility time in the civil service has seen a saving of £17 million?

[Sajid Javid]

I should emphasise that point: we are saving £17 million a year because of the transparency we have introduced into the civil service. It will no doubt have a similar impact on the rest of the public sector.

There are nurses, teachers and other public servants being paid a salary by the taxpayer while working for their union under the banner of facility time. There is no transparency around how much time they spend on union work and no controls in place to ensure that the taxpayer is getting value for money. It is a situation that most ordinary Britons, including many dedicated public servants I have spoken to, find absolutely baffling. That is why civil service Departments are already required to publish information about the use of facility time by their staff. The Bill allows the Government to make regulations extending that to all public sector employers. It will include information about an employer’s spending on trade union duties and activities and about how many of its union representatives spend a specified percentage of their time on their union role. We have already made considerable savings for the taxpayer by requiring Departments to publish this information, as we have just heard from my hon. Friend the Member for Wells (James Heappey). However, if transparency alone does not lead to further savings, the Bill also grants Ministers the power to set a cap on the time and money spent on facility time.