Oral Answers to Questions

Debate between Kris Hopkins and John Pugh

Monday 15th December 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)]

Every part of the public sector needs to do its bit to pay off the deficit left by the last Labour Government, including local government, which accounts for a quarter of all public spending. The National Audit Office report recognises that local authorities as a whole have coped well with spending reductions, with many increasing their financial reserves. The Government will continue to support local councils to transform local services, cut waste, tackle fraud and achieve better outcomes for local people.

[John Pugh]

I admire the Minister’s calm, but the report says that half the local authority auditors, never mind the politicians, have grave concerns. Given that, and given that Labour itself wants to take £500 million out of local authority finance, is it not time for a wholesale review of local authority finance?

[Kris Hopkins]

The record shows that the vast majority of people believe that local authorities offer a good service, and local authorities have achieved significant outcomes despite the reductions. Furthermore, the Government have prioritised the ability of local authorities to grow their budgets by developing local businesses, which has brought in significant money to those establishments—£11 billion has been retained in business rates alone.