HC Deb 15 July 1992 vol 211 cc1128-9
7. Mr. Harry Greenway

To ask the Secretary of State for the Environment how much local councils spend on average for each person in the country.

The Minister for Local Government and Inner Cities (Mr. John Redwood)

In each area, local councils are planning to spend on average £2,000 per adult this year in England.

Mr. Greenway

Will my hon. Friend confirm that local government spending is now running at £43 billion per year, which gives the Government a legitimate and vital interest in controlling that expenditure? Is he aware that every citizen of Ealing has a debt of £2,000 around his or her neck left by the last Labour council, which increased rates by 65 per cent. in 1987 and trebled them in three years? Is not that typical of the Labour party in control of local government, and is it not awful?

Mr. Redwood

My hon. Friend makes some powerful points. He is right to say that Labour councils often overspend and over-borrow and leave people up to their necks in debt. Around the country there is an average of more than £1,000 of debt for every adult as a result of borrowing plans, often by Labour authorities. My hon. Friend is right that revenue expenditure is now running at high levels. If one adds capital expenditure, the figure is even bigger, as I said in answer to the main question. Contrary to the opinion expressed by the Opposition, it also shows that there is a great deal of choice and discretion for local authorities in deciding how to spend those huge sums in the interests of local taxpayers.

Mr. Hardy

Is the Minister aware that his answer to his hon. Friend the Member for Ealing, North (Mr. Greenway) was almost contemptibly arrogant and irresponsible? Does he not accept that the overwhelming proportion of local government spending is in pursuit of the statutory obligations and duties placed on local authorities, and that only a very small proportion of local government spending is left to the liberty of the individual council? Would it not be more responsible for Ministers to persuade their hon. Friends that it is unreasonable to try to suggest that all local government spending is profligate?

Mr. Redwood

My hon. Friend was not suggesting that. There are many fine Conservative-controlled councils spending well and wisely on good services for their local communities, but there are still profligate local authorities, sponsored by the Labour party and, yes, it is necessary for someone to stand up for the taxpayers in those areas. My reply was far from arrogant. I believe in local government and I want it to have choice and discretion, which is why we vote so much money for it to exercise that discretion.

Mr. Butcher

Does my hon. Friend recall that during the changeover period from the rating system to the community charge, many local authorities used the time to increase expenditure faster than the rate of inflation? In the change from the community charge system to the new council tax system, will my hon. Friend use his capping powers combined with an RPI minus X formula to protect ratepayers and charge payers from the kind of chicanery that they endured three years ago?

Mr. Redwood

Fortunately my right hon. and learned Friend has more extensive powers, and I am afraid that we shall have to use them if councils are irresponsible. However, I am hopeful that many councils will not be irresponsible next year and I am glad that there are more Tory councils as a result of recent local elections. That means that we shall have more sensible councils spending at prudent levels and providing their chargepayers and council taxpayers with very good value for money. It is interesting to note that most Tory authorities spend below the permitted levels and come in with much lower taxes than do Labour councils.