Commons Sense

House of Commons · Ministers' Questions

Local Authority Budgets

Monday 7 March 2022 · 8 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • Paula Barker questioned the impact of local authority budget reductions on the levelling-up agenda, citing a 50% funding decrease for Liverpool Wavertree over a decade.
  • Barbara Keeley highlighted the 53% core funding cut for Salford City Council since 2010-11 and asked about the viability of delivering social care services under these constraints.
  • Liz Twist inquired about the lack of funding for local councils in the levelling-up White Paper and questioned the ability of councils to deliver necessary changes without new funding after 12 years of cuts.

Topics (select to filter)

Questions & Answers

Q1 Paula Barker Lab Liverpool Wavertree
Local Government
Context

Budget reductions to local authorities have been ongoing since austerity measures were introduced, impacting the delivery of essential services.

Question

What assessment has the Minister made of the impact of reductions to local authority budgets on the Government's levelling-up agenda? Liverpool Wavertree's council funding has been reduced by 50% over a decade. How can these cuts support the levelling-up initiative?

Answer from Kemi Badenoch

Next year's local government finance settlement makes available an additional £3.7 billion to councils, including funding for adult social care reform. This is an increase in funding of more than 4.5% in real terms and it will ensure that councils across the country have the resources they need to deliver key services.

Partly answered

Not addressed: The MP asked specifically about the impact of reductions on levelling-up, but the response did not address this directly. Instead, it highlighted an increase in funding.

How: Changing Topic To Focus On Additional Funding Instead

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Q2 Barbara Keeley Lab
Social Care Local Government
Context

Salford City Council has faced a significant reduction in core funding from central government since 2010, leading to financial difficulties.

Question

Salford City Council's core funding has been cut by 53% since 2010-11. With additional costs due to national insurance and inflation increases, how can councils deliver social care services when the government's solution involves regressive taxes like council tax?

Answer from Kemi Badenoch

We recognise that councils have financial pressures and we are doing everything we can to support them. Salford receives up to an additional £19.2 million in core spending power, which is a cash-terms increase of 7.8%. That excludes other funding that we have given to the hon. Lady's council to assist with the pressures she has raised.

Partly answered

Not addressed: The MP asked about specific challenges Salford faces and how they can fund services, but the response provided general support information without addressing these specific issues.

How: Changing Topic To Focus On Additional Funding Instead

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Q3 Liz Twist Lab Blaydon and Consett
Local Government
Context

The levelling-up White Paper did not mention funding for local councils, despite their role in delivering changes to communities.

Question

The levelling-up White Paper made no reference to funding for local councils. Given that local authorities are crucial for delivering change, does the Minister think councils can deliver without new funding after 12 years of cuts?

Answer from Kemi Badenoch

I disagree with the hon. Lady. The levelling-up White Paper did make reference to council funding, and the financial settlement that I referred to earlier mentioned the cash increase. She will know that Gateshead receives 8.1% and that the Northumberland part of her constituency receives 8%. The fact is that we have given additional funding for levelling up. This includes £2.1 million from the community renewal fund and a £358,000 allocation from the welcome back fund.

Partly answered

Not addressed: The MP asked if councils can deliver without new funding, but the response emphasized additional funding provided instead of addressing the question directly.

How: Changing Topic To Focus On Additional Funding Provided

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Q4 Paula Barker Lab Liverpool Wavertree
Local Government
Context

Councils have suffered significant losses in core funding over the last decade, leading to financial strain.

Question

Local government finance has been devastated under austerity. With up to 50% loss of core funding for councils in the north, how can the Government genuinely improve spending powers by factoring in inflation and national insurance increases?

Answer from Kemi Badenoch

Labour Members continue to talk about losses in funding, but they forget to remind everyone of how we arrived in this position. It is because of their disgraceful management of the public finances. We have spent the last 10 years repairing the public finances, which is why we have been able to give the real-terms increase that will support all Labour councils.

Not addressed: The MP asked about improving spending powers but received a political attack instead of an answer.

How: Attacking Opposition'S Management

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Q5 Siobhan Baillie
Local Government
Context

Stroud District Council has expressed appreciation for government support during the pandemic, but now seeks more information on future funding.

Question

Stroud District Council is optimistic about receiving £20 million from the levelling-up fund. With GFirst LEP eager to know the timeline for the shared prosperity fund, can the Minister provide any further details?

Answer from Kemi Badenoch

I recognise my hon. Friend's concerns. All I can tell her is that we will be providing further details very shortly.

Not addressed: The MP asked for a specific timeline but received vague assurances instead of concrete dates or timelines.

How: Promising To Provide More Information Without Specifics

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Q6 Mark Pritchard Con The Wrekin
Asylum & Refugees Local Government
Context

Local authorities face pressure supporting refugees from Ukraine and Afghanistan, seeking more support from the government.

Question

Many local authorities are under financial strain while providing support to refugees. Can the Minister outline further assistance available to councils hosting refugees?

Answer from Kemi Badenoch

I cannot answer all my right hon. Friend's questions, but my right hon. Friend the Secretary of State is having discussions with councils on this very issue. As soon as we are able to provide further details, we will do so.

Not addressed: The MP asked for specific assistance details but received a promise to discuss further without immediate information.

How: Promising Future Discussions Instead Of Concrete Support

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Q7 Damien Moore Con
Local Government
Context

The reorganisation of local authority boundaries is seen as a potential solution to reducing financial strain on councils.

Question

Does my hon. Friend agree that the reorganisation of local authority areas can reduce financial pressures? Can she meet me to discuss Southport's benefits from being in a new council area?

Answer from Kemi Badenoch

Yes, it is true that reorganisation can sometimes assist. I would be happy to meet my hon. Friend to discuss this issue.

Answered
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Q8 Mike Amesbury Lab
Local Government
Context

Councils have faced significant financial shortfalls due to government cuts, including a real-terms cut of 2% this year. Burnley Borough Council has lost £88 million over the past decade despite levelling-up funding.

Question

Members on both sides of the Chamber have said that any levelling up will ultimately be delivered by local authorities improving lives in their communities, but councils have faced and continue to face serious shortfalls thanks to draconian Government cuts, including a 2% real-terms cut this year. Can the Minister explain how taking away £88 million from Burnley Borough Council in Lancashire over the last 10 years, even after taking into account the levelling-up funding, is fair? How is that levelling up? How will a £102 million shortfall over the next three years for Essex County Council—the Minister's own county council—level up adult social care?

Answer from Kemi Badenoch (Minister of State for levelling up, housing, and communities)

I completely reject the hon. Gentleman's numbers. As I said, we have given a 4.5% increase in the local government finance settlement. We are here to provide support to all local authorities. We are not going to engage in agreeing with the false numbers provided by the Opposition.

Partly answered

Not addressed: The Minister rejected the specific figures and did not address how taking away £88 million from Burnley Borough Council over 10 years or addressing a £102 million shortfall for Essex County Council would be fair or how it would level up.

How: Rejecting The Hon. Gentleman'S Numbers, Not Engaging With False Numbers Provided By The Opposition

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