Local Government Financing

Clive Efford Excerpts

Tuesday 29th June 2010 Commons Chamber

[Mr Denham]

There is the true voice of the Tory shires. The truth is that the local government funding formula—widely debated, widely discussed, widely consulted on—does give a weighting towards those areas with the highest social need and the highest deprivation, because the challenge of delivering services in those areas and of bringing about the equality of outcomes that we should all seek is greatest there. I do defend that. I do defend programmes like the working neighbourhoods fund, which has been targeted by this coalition Government, and through which money has of course been spent in areas of higher worklessness. It is because of that that those areas saw more people coming off incapacity benefit as local authorities used that money to help get people off benefit and into work—something we hear so much cant about from Government Members. So I say to the hon. Gentleman, yes, I do defend that approach.

[Clive Efford (Eltham) (Lab)]

Is my right hon. Friend aware that during the opening of yesterday’s debate on the Budget, in an exchange about cutting benefit to the long-term unemployed who are seeking work, the Secretary of State for Work and Pensions referred to pensioners living in houses that were too big for them and that they were unable to look after. Does that not give away what is really behind these benefit changes—that the pensioners and the poorest in our communities are going to pay the price?

[Mr Denham]

That would fit with a Budget that increased VAT on everything pensioners buy with no attempt whatever to protect those pensioners from the increase in their living costs, so my hon. Friend indeed raises a good point.

--- Later in debate ---

[Grant Shapps]

I am grateful to my hon. Friend for clarifying that. I now understand that the note was in the right hon. Gentleman’s pigeonhole, and that the telephone call—[Interruption.]

[Clive Efford]

On a point of order, Mr. Speaker. I am not sure whether I heard it right, but I believe that we have just heard an announcement of a £1 billion fund. I wonder why that was not announced in a statement to the House.

[Mr Speaker]

Before I respond to the point of order, I shall be happy to hear a statement or clarification from the Minister, from whose lips I think the words came.