Local Authority Finances

Lord Laming Excerpts

Tuesday 6th February 2024 Lords Chamber

[Baroness Penn (Con)]

My Lords, I disagree that the amount was low. It was an additional amount on top of the provisional settlement, which sees the core spending power for local government rising from £60.2 billion this year to £64.7 billion next year—both a real-terms increase and a 7.5% cash increase. That is substantial. When we look at local government funding, we engage across the sector and look at wider economic pressures. We take it all into account when reaching a settlement.

[Lord Laming (CB)]

My Lords, does the Minister agree that cuts in local government funding started in 2010 after the banking crisis and have accumulated, in real terms, year on year? That being so, many non-statutory services have been withdrawn, particularly in family support, and statutory services have been reduced to crisis intervention in many authorities. Is there any real hope that the Government will recognise that there is a severe problem in local government finance?

[Baroness Penn (Con)]

My Lords, of course I acknowledge that, in 2010, difficult decisions had to be made about public finances both centrally and in local government. However, in recent years, we have seen real-terms increases in the finances going towards local authorities. I also recognise the pressure that they face on issues such as adult and children’s social care and special educational needs provision. We have seen real increases in demand. Alongside additional funding, we need to look carefully at the right reforms to put in place to help manage that demand, without just putting in more and more funding.