Local Government Funding

Part of Opposition Day – in the House of Commons at 3:20 pm on 28th March 2018.

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Photo of Sajid Javid Sajid Javid The Secretary of State for Housing, Communities and Local Government 3:20 pm, 28th March 2018

I do not know whether the right hon. Gentleman was present for the statement I made yesterday on Northamptonshire County Council, but the independent inspector specifically concluded that the situation was not due to a lack of funds but to the mismanagement of funds and other issues. However, the right hon. Gentleman makes a wider point that councils can face certain financial difficulties even if they are managing their finances well, and those councils should rightly make maximum use of the available flexibilities. If they want to go further, they can try to get the support of local people through a referendum. In the longer term, we need a fair funding review, to which Wera Hobhouse recently referred, to ensure that the system distributes funding more fairly. The recently closed consultation received some 300 representations, and will be going through them.