Local Government Finance

Part of Points of Order – in the House of Commons at 8:22 pm on 4 February 2008.

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Photo of Bob Neill Bob Neill Shadow Minister (Communities and Local Government), Deputy Chair, Conservative Party 8:22, 4 February 2008

The Minister makes an interesting point, but it is a shame that he did not mention certain other figures, which suggest that families will be spending an extra £53 on top of their council tax, thanks to this Government, and which demonstrate that, when considered across all tiers of local authority, Conservative authorities consistently come in at some £50 a year less than Labour authorities. The Government's attempt at obfuscation hides the real concern that underlies this settlement.

The settlement does not address the key issues. We have debated the impact of migration at some length—it is a serious issue—but we have not dealt with the persistent transfer of financial burden and risk that has occurred under this Government. The settlement compounds a move that has taken place right across the period of this Administration to increase the financial risk placed on the local council tax payer and to reduce the exposure of central Government. That is illustrated by the way in which much of external aggregate financing is a recycling of the business rate. The amount of support for revenue support from general taxation is again reduced by the settlement, by a further 29 per cent. That is an enormous shift, and the burden is increasingly being placed on local communities while being taken off the balance sheet of whichever Macavity happens to be in charge of the Treasury. That is all part of the hidden smoke and mirrors with which the Government operate.