Oral Answers to Questions

Kim Johnson Excerpts

Monday 14th July 2025 Commons Chamber

[Jim McMahon]

The fair funding review will do what it says on the tin: it will make sure that, for the first time ever, all component pressures that councils face in delivering public services, and in raising money locally, are taken into account. It is wrong that while this Parliament can decide on national exemptions that councils have to apply, which limit their ability to raise council tax locally, we do not account for that in the distribution of funding that follows. For the first time, we will do that.

[Kim Johnson (Liverpool Riverside) (Lab)]

Liverpool is a university city, and I have three universities in my constituency. Liverpool city council is estimated to lose £9 million in council tax revenue each year due to student exemptions. Will the Minister explain when and how those anomalies will be dealt with, so that the council does not lose that amount of funding every year?

[Jim McMahon]

The fair funding review 2.0 is out to consultation. We welcome contributions to the consultation from Members, local authorities and others. At heart, we want to fully account for the ability of an area to raise income locally. Nationally, there are 245,000 student exempt dwellings and 77,000 halls of residence. It is quite right that we take that into account when we assess how much council tax can be raised locally. In some cities and towns, that will make quite a material difference.