HC Deb 03 March 1998 vol 307 cc838-9
2. Mr. Gray

What representations he has received on the 1998–99 local government financial settlement. [30622]

The Minister for Local Government and Housing (Ms Hilary Armstrong)

The Department received 406 written representations within the deadline for responses. I and other Ministers at the Department also met the Local Government Association and the Association of London Government, delegations from 95 local authorities, and one special interest group during the consultation period.

Mr. Gray

Is the Minister aware that, after the correction of an arithmetical error in the announcement of the revenue support grant for Wiltshire, this year's settlement represents a real cut of 7.2 per cent. which has meant for Chippenham an increase of £75.49 in band D council tax? Are the Government to blame for that increase, or is it the fault of the county council, in which case, will the Minister join me in calling on the four Labour councillors who keep the incompetent Liberal authority in place to withdraw their support?

Ms Armstrong

The hon. Gentleman clearly still has the blame mentality. He will know that the previous Government wanted to shift the balance between central and local funding. We have continued that, but it is up to local government to make decisions about the balance between central funding and local taxation.

Mr. Bill O'Brien

Has my hon. Friend received representations from Wakefield—my local authority—about the way in which the formula has reacted against it? Has she also received representations from the West Yorkshire police, who are now saying that there is a deficit in their income from the formula that has been set by council tax funding? As band D properties in West Yorkshire have received a 75p reduction in council tax, there will be a knock-on effect in all other bands and therefore a substantial reduction in revenue for the West Yorkshire police. Will she address that point and investigate the problems?

Ms Armstrong

I am always interested in hearing from colleagues about how the settlement is working in their area. My hon. Friend will know that consultation on this year's settlement has finished, and the House has made a decision. The authorities that he mentioned will have an opportunity to make representations on how we decide on the standard spending assessments for next year. We intend to achieve a more just settlement.

Sir Norman Fowler

May I ask about the position in London? Will the Minister acknowledge that, even after all the changes to distribution that the Government have made, Wandsworth's band D charge next year will be £319 and Westminster's will be £325, while Camden's will be £879 and Greenwich's will be £883? Why, even under this Government's system, do Labour councils come out so expensive?

Ms Armstrong

I am sure that the House will note the difference between that contribution and what the right hon. Gentleman said during the debate on the settlement. We have begun the fairness exercise, but we have not yet completed it.

Mr. Skinner

To ensure fairness, will my hon. Friend take particular note of the fact that, during the 18 years when the Tories were in power, many Tory Members from Derbyshire used to tell Ministers in the House to cut the grant for Derbyshire? They did that for 12 consecutive years. The net result is that we now need a little extra help to achieve fairness. I am being consistent. I called for extra money when the Tories were in power. I do the same now. Will my hon. Friend ensure that help is received?

Ms Armstrong

My hon. Friend reminds us of the comments of the Conservatives during debates on settlements. We have not yet received representations from Derbyshire. When we do, we shall consider them fairly.