Local Government Finance (England)

Part of the debate – in the House of Commons at 6:17 pm on 31 January 2001.

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Photo of Hilary Armstrong Hilary Armstrong Minister of State (Local Government and Housing), Department of the Environment, Transport and the Regions, Minister of State (Department for Environment, Transport and the Regions) (Local Government) 6:17, 31 January 2001

There are special problems in Gloucestershire that I discussed with my hon. Friend earlier today. They result from a blip in the figures this year. It is not right that the formula should respond in the way that it has, and that is why we are reviewing the distribution system. I hope, by taking account of matters such as that, that we can create a fairer system.

We are not rushing to hasty solutions, as some would urge. We are building a consensus on the way forward with local government and other stakeholders. We have received a massive response to our Green Paper—more than 16,000 replies. We are currently finalising our analysis of those responses and the details will be published on the Department of the Environment, Transport and the Regions website by the beginning of March.

However, this settlement must not been seen in isolation. The Government have responded to specific pressures in four areas. First, we have looked again at the funding position of authorities with the most serious deprivation problems. My right hon. Friend the Deputy Prime Minister announced on 24 January a doubling of the provision for the neighbourhood renewal fund in 2001–2002, from £100 million to £200 million. These additional resources will help local authorities improve their mainstream services in the most deprived neighbourhoods.

Secondly, in some areas where there have been serious floods this year, authorities faced the prospect of an increased levy from the Environment Agency to cover the costs incurred in dealing with them. My hon. Friend the Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food, who has responsibility for the countryside and fisheries, announced on 26 January that he will provide an additional £11.6 million for the Environment Agency, to limit the burden falling on local authorities.