Oral Answers to Questions

Steve Rotheram Excerpts

Monday 28th February 2011 Commons Chamber

[Robert Neill]

There is nothing to apologise for, because the error lies with those—including the GMB—who have calculated these scaremongering figures on the basis of HR1 forms, which relate to consultations on possible deletions of vacant posts, changes in work force patterns and voluntary redundancies. They bear no relation at all to compulsory job reductions; the hon. Gentleman should know better.

[Steve Rotheram (Liverpool, Walton) (Lab)]

4. What assessment he has made of the effects of reductions in formula grant funding on local authorities in the most deprived areas.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

5. What assessment he has made of the effects of reductions in formula grant funding on local authorities in the most deprived areas.

[The Minister for Housing and Local Government (Grant Shapps)]

Authorities in the most deprived areas will, thanks to the banded floors, receive a smaller reduction in formula grant than others. We have given greater weight to relative needs in the formula grant, and our new transition grant will make sure that no council has a spending power reduction of more than 8.8%.

[Steve Rotheram]

If fairness is at the heart of this Government’s decision making, as clearly stated in the coalition agreement, why are the most deprived areas being hit the hardest? Given that the Minister wrongly stated that the most deprived area—Liverpool—did not receive a 30% cut to Supporting People funding, when can Liverpool expect to see a recalculation based on the 1% national average, which would result in an £11 million improvement in its settlement?

[Grant Shapps]

Here is something for Labour Members to take into account: one cannot take money away from authorities that are not getting it in the first place. Of course, the biggest spenders, even if we use percentages in the same region, are going to feel the impact in a different way. Liverpool, for example, still receives £764 a head, whereas my authority, by contrast, receives £229 a head.