Local Government Finance
Debate between Greg Clark and Alison Thewliss
Greg Clark
I am grateful to my hon. Friend. I recall spending a very pleasant evening with the Cabinet of his council in Bromley and having a more recent meeting there. It is right to think of the demographic pressures in the outer London boroughs. Those boroughs, and many other places across the country, have made the case that the population has aged and more people tend to retire to those places than to others. They also contend that the formula, which has not changed for 10 years, has not kept up with that. I can confirm that the transitional funding will be available immediately, from the next financial year, so that my hon. Friend’s council and others will be able to apply those extra funds straight away.
Alison Thewliss (Glasgow Central) (SNP)
I thank the Secretary of State for giving me slightly advance notice of his statement. It comes against a background of cuts to local government in England; I understand that the figures are 27% over the past years and 8% for the years ahead. I am glad that he has at least given local councils a bit of time to think about this, and I hope that they will get back to him with their views on the settlement. I note what has been said about the pressures on rural service delivery, but the breakdown of the core spending power appears to show that areas that are already very wealthy are going to get more. He also mentioned that the percentage of council expenditure financed by central Government grant was going down from 80% to 5%, but I wonder how much of that is just cuts rather than changes to the expenditure.
There does not seem to be enough time for councils to respond to the proposals. The Secretary of State has talked about giving them two years to respond, but that does not acknowledge the difficulties that some councils will have in raising funds from business rates and council tax. Some will be starting from a relatively low base in that regard, and I am not convinced that two years will be enough transition time for them. Also, the statement does not seem to mention any recognition of needs. It talks about demographic pressures, but age is not the only such pressure that communities face. There needs to be greater acknowledgement of that fact in these plans. Other demographic pressures exist, and areas of multiple deprivation will require additional support and transitional relief. I would like to see greater recognition of that in the proposals.
Greg Clark
I am grateful to the hon. Lady for her contribution. She will know from her colleagues in Scotland that setting the local government financial framework is a delicate matter. It involves a lot of decisions that affect people in different ways, and I hope she will acknowledge that I have done this in a fair way. She talks about the transitional relief lasting for two years. This will happen because the shape of the settlement will see resources increasing towards the end of the period, as the social care precept and the Better Care Fund take effect. However, colleagues across the House felt that the first two years would be the most severe time, and I therefore felt it right to focus the transitional relief on that period. The hon. Lady mentioned an assessment of needs, and I completely agree with her. The review to which I have committed will look at all the needs, and it will consider not only the demographic pressures but the cost of delivering services, because that is a fair way to proceed.
Oral Answers to Questions
Debate between Greg Clark and Alison Thewliss
Greg Clark
No, we have not published the response to the consultation yet, but we would not have had a consultation had there not been a proposal from the Government that having this power in the hands of local authorities would be consistent with the devolution that we have practised. We will of course respond to the consultation in due course. I do know that my hon. Friend has sincere and long-held views on this matter, on which of course we will reflect.
Alison Thewliss (Glasgow Central) (SNP)
The Secretary of State will be aware of the concerns raised by the Union of Shop, Distributive and Allied Workers and other organisations that there may be implications on the pay and conditions of shop workers from devolving Sunday trading laws. Can he give those workers any reassurances, and has he met USDAW to discuss the matter?
Greg Clark
I am very surprised by the hon. Lady’s question, because Sunday trading is completely deregulated in Scotland. As far as I know, it is operating without problem, but if it does give rise to problems, the hon. Lady’s party is the party of Government in Scotland so has the ability to do something about it.
Alison Thewliss
On the contrary, in the Scotland Bill there are no provisions on pay and conditions or on employment law. Specifically on Scotland, will the Secretary of State assure us that there will be no impact on the pay and conditions of Scottish workers as a result of the decision of English local authorities?
Greg Clark
We risk jumping the gun in the way that my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) has just said. We have published a consultation proposal. It does not affect Scotland, because it is a devolved power. Of course we will want to ensure that workers have protections so that they are not obliged to work either for the first time on Sundays if they do not wish to, or to be compelled to extend their hours. That would make complete sense in any response to the consultation.