HC Deb 29 January 2003 vol 398 c868
5. Angela Watkinson (Upminster)

If he will make a statement on the grant settlement for Havering.[93770]

The Parliamentary Under-Secretary of State, Office of the Deputy Prime Minister (Mr. Tony McNulty)

I am afraid that I shall have to disappoint the hon. Lady. There will be no separate statement on the grant settlement for Havering. As the Minister for Local Government and the Regions has already said, the provisional figures were announced on 5 December. The final settlement will be produced on 3 February for debate on 5 February. The Under-Secretary of State, Office of the Deputy Prime Minister, my hon. Friend the Member for Shipley (Mr. Leslie), has met a delegation from Havering and taken their views into account during the consultation process.

Angela Watkinson

The Minister will be aware that Havering is acknowledged to have received a perversely low settlement for many years, which gave rise to a 12.5 per cent. increase in council tax last year. Under the draft settlement, Havering has received the lowest increase, 3.5 per cent., which has sent its finances into crisis. Will he agree to re-examine Havering's financial crisis before the final settlement is announced on 3 February?

Mr. McNulty

As I said, the consultation period has already closed. Over the past four years, Havering has received increases of almost 5 per cent. year on year. Council tax is a matter for the minority Tory administration. In the equivalent last two years of the Tory Government, Havering's rises were, respectively, minus 1.8 per cent. and 1.2 per cent. —at a time when, I believe, inflation was slightly higher.