§ 5. Mr. Stephen McCabe (Birmingham, Hall Green)What proposals he has to give more financial autonomy to local authorities. [64158]
§ The Parliamentary Under-Secretary of State for the Office of the Deputy Prime Minister(Mr. Christopher Leslie)Our comprehensive agenda for reform of the local government finance system was set out in last December's White Paper. Our finance reforms will give councils more space to innovate, and to respond in ways that are appropriate to local circumstances, by providing local authorities with significant new freedoms to borrow, invest, trade, charge and set their own spending priorities.
§ Mr. McCabeMy hon. Friend is doubtless aware that one constant criticism of local authorities is the rising level of ring-fenced grants. Will he take an early look at that difficulty, which impacts on local authorities' room for manoeuvre and on local working partnerships? Will he try to introduce some early proposals to address that problem?
§ Mr. LeslieMy hon. Friend raises an extremely important point, and the Government are discussing this very matter with the Local Government Association—not least in the context of the forthcoming spending review. The local government White Paper spells out clearly our aim gradually to restrict ring-fenced grants to genuinely high-priority areas.
§ Mr. Mark Francois (Rayleigh)The Minister will be aware that the review of standard spending assessments is reportedly reaching a conclusion. As the Government prepare to issue a consultation document on their findings, I ask them to ensure that authorities that are part of the 214 town and country finance issues group—they include Rochford district council, which is in my constituency—are not disadvantaged by the Government's proposals. Many of those councils suffered under the old regime, but they are hoping to do better under the new proposals.
§ Mr. LeslieThe hon. Gentleman is right and consultations are due to begin shortly. On the question of the grant distribution, there are no easy solutions. Many difficult and competing pressures from local authorities must be faced, but I will take his comments as an early submission.
§ Mr. Neil Turner (Wigan)Can my hon. Friend confirm that when the review comes out it will be based on the principles of transparency and, more importantly, fairness, to take account of the needs of local authorities and their abilities to raise resources from all sources?
§ Mr. LeslieMy hon. Friend makes an important point. I believe that the fairness and simplicity of any grant formula is crucial. Competing pressures include deprivation and the recruitment and retention of staff, and all those matters will be addressed in the options for the future consultation document.