Amendment of the Law Debate

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Department: HM Treasury
Monday 28th March 2011

(13 years, 2 months ago)

Commons Chamber
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Lord Pickles Portrait The Secretary of State for Communities and Local Government (Mr Eric Pickles)
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It is a great pleasure to resume the debate on the Budget.

Since 1997, year on year, families have waited for that dreaded envelope: the council tax bill. Every year under Labour, it grew, eventually doubling in size, but this year something is different. As the bill hits the doormat, families and pensioners throughout England will find that it has not gone through the roof. It will save families up to £72 on a band D home, because the coalition Government are on the side of ordinary working people. I commend those councils—every single one of them—that have taken up the Government’s offer to give their residents a much-needed break, but I am very disappointed that the Opposition have opposed the measure.

In the Commons, the shadow Local Government Minister, the hon. Member for Derby North (Chris Williamson), called the measure a “gimmick”. His Lords counterpart last week also opposed it, alleging that the

“freeze builds up financial trouble for the future.”

Surely that cannot be the Labour party’s position, because it is not what Labour councils are saying on the ground.

I have a selection of quotations, and I will read out just three that will help. Sandwell’s local authority states:

“The council is very aware of the difficult times local people face, and we don’t want to add to their misery”.

On the freeze, it states:

“It would be barmy not to do so.”

Manchester city council, a local authority that we have heard a lot of recently, states:

“We recognise it has been a very difficult year for some people, and as the UK comes out of recession it is critical we offer all the support we can to Manchester residents… it is great news…that this year we will freeze council tax”.

Nick Raynsford Portrait Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
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Will the right hon. Gentleman give way?

Lord Pickles Portrait Mr Pickles
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In a moment. Let us have the full panoply before we hear from the right hon. Gentleman.

--- Later in debate ---
Lord Pickles Portrait Mr Pickles
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Yes.

Bolsover council states that

“we have taken this step to freeze our share of the Council Tax because we do not feel it is fair that these are passed onto you”.

I do not recall the right hon. Gentleman freezing the council tax during his time in government, but let us hear from him.

Nick Raynsford Portrait Mr Raynsford
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I am sure the right hon. Gentleman will recall, because he has followed local government matters, that the London borough of Greenwich, the authority in the area I am proud to represent, has frozen its council tax for six of the past 10 years—under a Labour Government for five of those six years. Has he forgotten that? Is he not aware of what councils were doing long before he took up his current position?

Lord Pickles Portrait Mr Pickles
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I suppose if a council sits on £130 million of reserves, that is an easy thing to do, but let him recall Hammersmith and Fulham, which, after years of considerable increases, managed not only to freeze the council tax but to cut it in each successive year.

I regret that the Labour party says one thing in the Chamber and another thing to the voters. I am proud to say that we are able to set aside—