§ 6. Mr. Nigel JonesTo ask the Secretary of State for the Environment when his review of area cost adjustment will be complete; and if he will make a statement.
§ The Minister for Local Government and Inner Cities (Mr. John Redwood)We have begun the review. We aim to complete it before the end of the year. It will be discussed during the debate on the general settlement.
§ Mr. JonesI thank the Minister for that reply, which is partially helpful. Is he aware that there is widespread concern in historically low-spending areas that the workings of area cost adjustment combined with the inaccuracies of standard spending assessments are leading to severe cuts in services? For instance, did he see the chief constable of Gloucestershire on BBC "Newsnight" on Monday who said that he had to keep 40 officer posts vacant so as to meet this year's spending round? That shows that the Department's spending limit does not match the establishment required by the Home Office. What has the Minister to say to Conservative councillors in Gloucestershire who two weeks ago decided to set a budget—[Interruption.]
§ Madam SpeakerOrder. This is a good opportunity to inform the House that I want brisk questions and equally brisk answers.
§ Mr. RedwoodI am glad that the hon. Gentleman thinks that my answer was partially helpful. I think that it was much more than partially helpful; it was very helpful. The hon. Gentleman should make his representations at the time on the issue that worries him. I say to Gloucestershire, "Go and look at Hampshire." It is setting the lowest council tax of the shire counties so far, recruiting more than 700 additional staff for the new responsibilities and showing that if affairs are well run it is possible to operate within the money available and do a good job for local citizens.
§ Madam SpeakerI call Mr. Spencer Batiste to set an example.
§ Mr. BatisteWhen my hon. Friend considers the mythology—[interruption]—methodology of the standard spending assessments to what extent will he consider it appropriate to include in the criteria the performance of local authorities compared with the standards being set under the various criteria established by the citizens charter?
§ Mr. RedwoodThat is a very interesting idea and I think that my hon. Friend's slip was quite deliberate. I reassure him that I am no student of myths, but I have had to peregrinate the ways of the standard spending assessments in order to do this job. I agree that we want accountable, good quality local services from accountable, good quality councils and I shall take my hon. Friend's idea on board when we conduct our review.
Mr. Robert AinsworthDoes the Minister accept that some of the questions about local government service depend to a large degree on a level playing field? Does he agree that the area cost adjustment was introduced to get the Government off the hook on which they put themselves with the poll tax and their supporters in the home counties? It is a deliberate distortion of the basis of local government finance and the Minister should take the opportunity to put it right.
§ Mr. RedwoodI should like to know whether it is official Labour policy to take away the area cost adjustment. Do Labour Members want to take all that money from inner London? If so, let them tell the House and tell me, and we shall regard it as a representation for this review.