Role of Central Government

Oral Answers to Questions — Communities and Local Government – in the House of Commons at 2:30 pm on 17 January 2011.

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Photo of Gavin Barwell Gavin Barwell Conservative, Croydon Central 2:30, 17 January 2011

What steps he plans to take to reduce the dependency of local authorities on central Government; and if he will make a statement.

Photo of Eric Pickles Eric Pickles The Secretary of State for Communities and Local Government

The Government's localism and decentralisation agendas are focused on passing powers to the most local level possible. The local growth White Paper set out our plans to enable authorities to retain locally raised business rates and to give councils a real incentive to go for growth. The Localism Bill, which is before Parliament, includes a number of measures that are designed to reduce the dependency of local authorities on central Government, including in particular a general power of competence for local government.

Photo of Gavin Barwell Gavin Barwell Conservative, Croydon Central

I thank my right hon. Friend for that answer. He will know that my constituency includes the retail and commercial hub of Croydon town centre. Achieving the full localisation of business rates would give the council a very strong stake in the health of the local economy and massively reduce dependency on central Government. Will he look at that idea as part of his long-term review?

Photo of Eric Pickles Eric Pickles The Secretary of State for Communities and Local Government

The Government are clearly looking to ensure that local authorities get the benefit of the economic decisions that they take. The key to that is the localisation of business rates. Clearly, were we to apply that to the City of London, it could pave the pavements with gold, so there must be some way of applying that measure to areas that are not as fortunate as, for example, Croydon, but I look forward to my hon. Friend's submissions to the review.

Photo of Barbara Keeley Barbara Keeley Shadow Minister (Communities and Local Government)

Good local councils in areas of greatest need use their grant funding effectively to support people with disabilities, people who need care or housing, and children with special educational needs. Will the Secretary of State therefore tell the House what he is doing to help such councils beyond imposing the heaviest cuts on them and trying to stigmatise their work with the language of dependency?

Photo of Eric Pickles Eric Pickles The Secretary of State for Communities and Local Government

As the hon. Lady knows, this was to be the year of the big cuts. Had the Labour party won the election, they would have imposed such cuts, and my job as Secretary of State was made considerably easier because I inherited a lot of the plans that Labour had prepared. She will also know that this Government have ensured that the most dependent councils face the smallest cuts, and that we have put in £6.5 million for supporting people and transferred nearly £1.5 billion from the health service to help to support people. We have protected the vulnerable, and we expect sensible and responsible local authorities to do the same.

Photo of Greg Hands Greg Hands Conservative, Chelsea and Fulham

One council radically reducing its dependence on central Government is my council of Hammersmith and Fulham. Thanks to four years of successive council tax reductions, there has been an accumulated saving to the average council tax payer of £1,799. Will the Secretary of State join me in congratulating Hammersmith and Fulham council on reducing its dependence on central Government and delivering exemplary value for money for its local residents?

Photo of Eric Pickles Eric Pickles The Secretary of State for Communities and Local Government

Hammersmith and Fulham council is indeed the apple of my eye. I recall visiting it in opposition and watching that first budget go through. First, the Labour party said that those were ridiculous cuts that would destroy services. Then it said that it would reduce council tax even further, but it ended up abstaining.