Local Government Finance (England)

Debate between Steve Rotheram and Robert Neill

Wednesday 13th February 2013 Commons Chamber

[Robert Neill (Bromley and Chislehurst) (Con)]

The speech made by the right hon. Member for Leeds Central (Hilary Benn) reminded me of a certain type of popular film. It was technically proficient, but it really ought to have been transmitted in black and white, because it was so full of dated thinking. It was reminiscent of those films that we sometimes see at the British Film Institute or of the re-runs of 1970s sitcoms that we see on television at about 1 o’clock in the morning. That is a shame, because, in all the huff and puff, the seriousness and importance of the local government settlement was rather missed. That became apparent during the interventions on the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Great Yarmouth (Brandon Lewis), whom I congratulate on presenting the settlement admirably. There was a degree of collective denial that I have not seen since I used to visit clients in Wandsworth prison.

The reality is that Labour has never been able to understand that it was committed to making significant cuts in public spending, which would have kicked in in 2014-15, and that because local government accounts for some 25% of public expenditure, it was inevitable that those reductions would have to take place in local government. It is a bit rich of the Opposition to say that we have behaved in an unfair fashion, when we have essentially continued with their formula system—despite my having some thoughts to the contrary when I was the Minister responsible—with an emphasis on the equation of needs and resources.

We have updated their system to give more accurate population figures and to be fair to those in rural areas to the degree that a case could be made. The updating of population figures tends to work to the benefit of London and other metropolitan areas with more transient populations, and no doubt for that reason the helpful Library research paper states:

“Excluding London—”

we all know London has particular circumstances—

“northern regions will receive larger start-up funding assessments—”

that is, in effect, the successor to formula grant—

“than their counterparts. The South East, South West and Eastern regions will receive the lowest levels.”

On spending power the paper states:

“Excluding London, northern regions and the West Midlands will have larger spending power per dwelling than their counterparts.”

That reflects the fact that the Government accept that there are greater pressures in some parts of the country—I always accepted that as a Minister, just as my hon. Friends on the Front Bench do now, and it must be recognised. That is exactly what the Government have done and to pretend otherwise is, if hon. Members will forgive me, disingenuous in the extreme.

[Steve Rotheram]

Following the cuts to Liverpool, is the film the hon. Gentleman identifies, “A Tale of Two Cities”?

[Robert Neill]

That is a good try but the hon. Gentleman must realise that we have a persistent inheritance of underperformance by Labour Governments, and there is an unwillingness—demonstrated by his intervention and many others—to move on with the serious issues about how we deliver the best services for local authorities.

For example, it was significant that the right hon. Member for Leeds Central made no mention of the fact that we have created other funding streams for local government through the new homes bonus. That scheme accounts for the increase in receipts in some councils. They are meeting the housing deficit that Labour left behind and we are rewarding them—of course, Opposition Members have no concept that a local authority should actually be rewarded for efficiency and enterprise. That is alien to their culture, hence the criticism. No mention was made of the fact that the localisation of business rates is the first significant move of devolution in fiscal terms—the Treasury is giving up and forgoing revenue in favour of local authorities—since the second world war. I hope that in due course as the economy grows, the local share of that business rate will increase from its current level of 50%. That is 50% more than was available under local discretion when the rates were effectively nationalised and redistributed, usually under an extremely opaque formula of which the hon. Member for North Durham (Mr Jones) was one of the advocates.

Fire Service (Metropolitan Areas)

Debate between Steve Rotheram and Robert Neill

Wednesday 7th March 2012 Westminster Hall

[Robert Neill]

May I make a little progress? I want to get this on the record, and then my hon. Friend will understand why.

It is important to recognise that, under the current system, the metropolitan authorities none the less receive far more protection from the damping system than any other type of authority. The Government took the view, despite arguments from some quarters to the contrary, that it was right to maintain the damping position. That has protected the metropolitan authorities more than anyone else. For example, West Midlands fire and rescue authority benefits from damping to the tune of £8.5 million in 2011-13. Overall, there is approximately a £26 million benefit to metropolitan fire authorities from floor damping protection in 2011-13.

[Steve Rotheram]

rose—

Oral Answers to Questions

Debate between Steve Rotheram and Robert Neill

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.

Local Government Funding

Debate between Steve Rotheram and Robert Neill

Monday 6th December 2010 Commons Chamber

[Steve Rotheram]

Thank you, Madam Deputy Speaker.

The Labour-run Liverpool city council is set to lose up to 38% of its funding. Clearly, some of us are more “in this together” than others. I mention Liverpool, as I always try to, because it is the very reason I am here in the first place. Let me focus briefly on precisely what the new funding regime means for my neck of the woods. I should point out that the very nature, speed and extent of the cuts represent a double whammy for Merseyside, which is home to two of the most deprived councils in the country—Liverpool and Knowsley. Indeed, Liverpool is the most deprived local authority area in the land according to all the key poverty indicators, despite the transformation of our city into a true international destination of choice.

[Robert Neill]

I understand the hon. Gentleman’s concern for his native city, but has he seen the local government finance settlement? No one else in the House has.

[Steve Rotheram]

No, I have not, but if the Minister can tell me that Liverpool will not suffer disproportionate cuts, I will allow him to come back in.

[Robert Neill]

As the hon. Gentleman has not seen the figures and therefore cannot know what they are for any authority, does he think it right to speculate and scare people when he has no evidence on which to base his assertions?

[Steve Rotheram]

I am more than happy to give way to the Minister if he can allay the fears of people in Liverpool, Walton. Can he tell them that what I am saying is not true and that Liverpool’s funding will not be disproportionately cut? I did not think so.

[Robert Neill]

Will the hon. Gentleman wait for the settlement and perhaps look at this then?

[Steve Rotheram]

What we are doing is preparing for the worst cuts for generations in areas such as Liverpool.