Local Government Finance Debate

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Local Government Finance

Helen Jones Excerpts
Wednesday 18th December 2013

(10 years, 5 months ago)

Commons Chamber
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Brandon Lewis Portrait Brandon Lewis
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As my hon. Friend knows, we are not fans of top-down reorganisation in local government, unlike the last Administration. However, I am very supportive of any local authorities that join forces to find new and innovative ways of saving back-office costs, and I shall always be happy to meet their members and discuss what is achievable for them.

Helen Jones Portrait Helen Jones (Warrington North) (Lab)
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If the Minister believes in fairness, can he explain why West Oxfordshire, one of the richest local authorities in the country, will gain from the settlement, while, according to the Audit Commission, the most deprived areas in the country will lose from it? Are not the Government pursuing a systematic policy, in local government, health and taxation, of transferring money from the poorest areas to the richest?

Brandon Lewis Portrait Brandon Lewis
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The hon. Lady’s argument falls completely flat for a couple of reasons. First, we are helping the hardest-hit councils, such as Pendle, Hastings, Great Yarmouth and Hyndburn, whereas the last Government left them with a black hole to fall into in 2010. Secondly, the hon. Lady is living in the past, because this year the Government adopted a reward-based system that enables local authorities to increase their income through the business rates retention scheme and the new homes bonus. Councils that do good things such as building houses and securing economic growth will experience the benefits of that.