§ 1. Mr. Christopher Chope (Christchurch)When he will announce the Government's response to the consultation on the provisional grant settlement for 2003–04.[93766]
§ The Minister for Local Government and the Regions (Mr. Nick Raynsford)We will be publishing our final proposals on Monday 3 February.
§ Mr. ChopeThat means that there will be just two days before the debate on those important orders, which is unacceptable and typical of the Government's arrogance. Is the Minister aware exactly how angry the people of Dorset are about the vicious attack on their standard of living in the proposed settlement? Does he realise that pensioners in Dorset will receive an increase of £1.95 a week in their state pension but, because of the Government's policies, will be expected to pay over £4 a week in council tax increases? Is that not—
§ Mr. RaynsfordI am a little surprised that the hon. Gentleman has forgotten the timetable that has applied for many years, and used to apply when his party was in 862 government. He will realise that local authorities need certainty to plan their budgets, so there is a timetable which involves a provisional settlement published in early December, representations in December and January, the publication at the beginning of February of the Government's proposals, a debate in the House, then implementation by local authorities. That timetable has existed for many years, so his anger is entirely synthetic.
As for the figures, Dorset is once again getting a very good settlement. Last year, it had a 6.7 per cent. increase, despite which it raised council tax by 9 per cent. If there is scaremongering about high council taxes, the people that the Opposition should be looking at are the councillors of Dorset county council, not the Government.
§ Mr. Bill O'Brien (Normanton)Will my right hon. Friend accept thanks from Government Members for his effort to try to regulate local authority expenditure? Does he also accept that the hon. Member for Christchurch (Mr. Chope) belonged to a Government who devastated that expenditure? When looking at the consultation and the response from local government, will he take into consideration concerns about high council taxes in some areas?
§ Mr. RaynsfordI thank my hon. Friend for his kind remarks about our efforts to ensure a fair settlement and consult widely with local government. This year, local authorities throughout the country have got a settlement that gives them an above-inflation increase. Every authority has had such an increase which, we believe, makes it possible for them to set a reasonable level of council tax and maintain council services. We hope that they will do so.
§ Mr. Eric Pickles (Brentwood and Ongar)The Minister has just said that each authority has received an above-inflation increase. At the same time as the provisional announcement, the Minister for School Standards, the hon. Member for South Shields (Mr. Miliband) sent out a letter promising 6.6 per cent. for schools.
What advice can the right hon. Gentleman give to those 13 local education authorities where the change in grant is insufficient to meet the demands of the Secretary of State for Education and Skills? Should authorities, the day after the Climbié findings, take money away from vulnerable children or the care of the elderly, or should they take the stealth option and increase council tax on the backs of hard-working low-income families?
§ Mr. RaynsfordFirst, my advice to all local authorities is that in the six years in which the Government have been in power there has been a 25 per cent. increase in real terms in grants for local authorities, compared with a 7 per cent. cut in real terms in the last four years in which the Opposition were in power. Local government is therefore getting a better settlement and has better prospects. I have met a number of authorities that have difficulty meeting their passporting obligations, as has the Under-Secretary of State, Office of the Deputy Prime Minister, my hon. Friend the Member for Shipley (Mr. Leslie), and we have advised all of them to talk to our colleagues in the Department 863 for Education and Skills, who have indicated willingness to be flexible where there are genuine pressures. However, we want money to be transmitted to schools to improve education, and we want continued improvement in social services. We want to give local authorities the opportunity to develop and improve services on the basis of the real increases in grant that the Government are delivering.
§ Mr. Andrew Dismore (Hendon)I am grateful to the Department for receiving a deputation from my local authority, Barnet. However, when my right hon. Friend is putting together the final draft, could he bear in mind the special circumstances facing us? The impact of the census and the new scheme has had bizarre consequences, and our education budget will be under considerable pressure as a result.
§ Mr. RaynsfordWe have given careful consideration to the representations that we have received from many local authorities, including my hon. Friend's authority. We will make clear our conclusions in the announcement on 3 February. Some areas have experienced difficulties because of census changes relating to previous mid-year estimates, but the floors ensure that every authority is protected against what might otherwise be a sharp change in grant entitlement. The floor ensures that every authority has an increase at least above the level of inflation.