Local Government Funding Settlement

Sarah Wollaston Excerpts

Thursday 13th December 2018 Commons Chamber

[James Brokenshire]

I appreciate the hon. Gentleman’s comments, but I am disappointed that he has not recognised the increases in spending that were set out in the Budget and that I have underlined, and the fact that I highlighted further spending in today’s statement. To take up his theme, one of my colleagues questioned whether the hon. Gentleman might be the Gwynch that stole Christmas. He should recognise that even in his local area there is Stockport Metropolitan Borough Council, with an extra £5.6 million in core spending; Tameside Metropolitan Borough Council, with an extra £4.5 million in core spending; and Oldham Metropolitan Borough Council, with an extra £3.6 million increase in core spending.

The hon. Gentleman should recognise the context of the work that the Government have done to clear up the mess that we inherited. [Interruption.] No, no— the UK economy has grown for five years, there are 3 million more people in employment since 2010, and manufacturing has grown for its longest period in the past 20 years. I recognise that local government has contributed to the hard work involved in clearing up that mess. We know that the demand on local services has increased. We have recognised that in the statement and will ensure not only that councils have the tools and flexibilities to deliver efficiently and effectively, but that they will have the additional funding that I set out today. We are equipping councils well.

The hon. Gentleman highlighted several points about deprivation. The most deprived authority’s core spending power is 23% higher than that of the least deprived. We take council tax into account in funding and when we look into issues of equalisation. He also highlighted the issue of negative RSG. I addressed clearly and firmly in my statement how that will be dealt with.

On social care and the £650 million, the hon. Gentleman questioned the need for strong integration—strong working between our councils and our NHS—to deliver quality services. That is profoundly what needs to happen so that we are looking after the most vulnerable in our communities. I am sorry if those on the Opposition Front Bench do not acknowledge or accept that. It is a fact that 93% of local authorities recognise that the better care fund has promoted integration and improved joint working in their areas.

This is a statement and settlement that, yes, acknowledges and recognises the pressures on social care, and that there is more work to do in respect of the forthcoming Green Paper and on how we will apply the learning from local government to drive better services. I will continue to be a champion for local government and what it delivers and does in our communities. I am proud to support local government and that positive work within our areas.

[Dr Sarah Wollaston (Totnes) (Con)]

Devon has successfully piloted the 100% retention of business rates, and it has injected an additional £20 million into Devon to support local economic growth and public services, but the pilot is due to end in March. Surely the whole point is to continue pilots that are a success. Can the Secretary of State provide any reassurance for Devon as to whether it will be able to continue, because it was not in the list of counties that he mentioned?

[James Brokenshire]

I recognise the challenges and issues over the business rates retention pilots. Not everyone has been successful in relation to the pilots for 2019-20. We are piloting on the basis of 75%. That is on the basis of the new system that is being introduced in 2020 so that we can properly understand how it will operate in practice. I will certainly highlight to my hon. Friend some of the other issues in relation to, for example, the rural services grant, and how that will be beneficial to her local community, but, obviously, we will look at the representations that are received through this provisional settlement.