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7.39 pm
The Parliamentary Under-Secretary of State for the Environment, Transport and the Regions (Ms Beverley Hughes): We have had an interesting debate and some worthwhile contributions have been
made, but our discussion has been all too short because of the antics of some Opposition Members. I agree with my hon. Friend the Member for Barnsley, East and Mexborough (Mr. Ennis) that Opposition Back Benchers have done little more than sabotage this debate. [Interruption.] I beg the Liberal Democrats' pardon; I am speaking only about Conservative Members.However, despite the Opposition's entirely predictable rhetoric, hon. Members clearly recognise that this year's settlement continues the sustained and substantial investment in local government services that the Government have provided during the past three years, notwithstanding the pressures. That investment is but one strand of the wider and more fundamental reform of local government. That reform will put local government back where it should be. I agree with the comments of my hon. Friend the Member for Coventry, South (Mr. Cunningham) in that respect.
We have a clear programme of reform for local government. We want it to plan for community well-being in the broadest sense, consult local people and work out the best way of providing services at a price that they are willing to pay. As our performance during the past few years demonstrates, we accept that local government needs a stable platform of adequate funding to achieve those aims. It must be able to rely on sustained real growth in funding so that it can plan for some years ahead.
As my right hon. Friend the Minister for Local Government and the Regions said, this year's settlement is the best since the introduction of council tax. Total support from Government grant and business rates will constitute more than £44 billion. That is an increase of £3 billion, or 7.2 per cent., which comes on top of the substantial increases that have been made every year since we formulated the budget. In those four years, Government grant to local government has risen by 14 per cent. in real terms. That investment contrasts starkly with the 7 per cent. real-terms cut made by the Tories in the four years before the last election.
I have been concentrating on the general grant because the House is considering the overall settlement, but I should point out that it comes in addition to substantial ring-fenced grant increases this year. There has been a total increase of 34 per cent., with a 48 per cent. increase in the ring-fenced grant for education.
During the consultation period, we listened carefully to what local authorities, their associations and hon. Members from all parties told us about the difficulties faced by local government. As my right hon. Friend the Minister for Local Government and the Regions mentioned, we took the view that there were four problem areas. It is curious that the right hon. Member for Skipton and Ripon (Mr. Curry) called that response to pressures "sticking plaster". That says a lot about the Tories' view on what consultation should be about. Indeed, when they were in government, they never listened or did anything in response to what people told them about their experiences. We are not like that. On top of providing a good settlement, we think that it is right to respond to the four problem areas.
It will be up to local authorities to finalise their budget plans. The right hon. Member for Skipton and Ripon did not seem to understand that point. Whatever protestations Opposition Members make, we expect that this year's very good settlement will enable council tax increases as
a whole to continue on the downward trend that we have established. The majority of local authorities will be able to set a lower council tax increase this year than they did last year.Let me put the increase in context. The right hon. Member for Skipton and Ripon described a litany of problems, but North Yorkshire has been given a 4.8 increase in the general grant and a 26.2 per cent. increase in the specific grant. That constitutes a total increase in Government funding of 6.5 per cent., plus £100,000 from the extra £52 million education grant. North Yorkshire county council has received a minimum increase of £19 million this year.
Obviously, any big organisation must make decisions on priorities and on the pressures to which it wants to respond, but let us make no mistake: this Government are continuing to give local government the best settlements that it has ever received, certainly in my memory. Local government needs the ability to manage its budgets.
Mr. Curry: Does the Under-Secretary accept that, three years ago, North Yorkshire lost £3 million because the social services formula was changed? That was an enormous hit against a county with a rising demographic trend. More elderly people needed care and more children were being taken into care--issues on which the Government claim to want delivery.
Ms Hughes: The right hon. Gentleman's presentation of the circumstances that existed three years ago is completely erroneous. Investment in local authorities was increased at that time. That included North Yorkshire, where total Government investment increased.
Ms Hughes: It was not a cut. Many councils' aspirations on total income are not met, in terms both of Government contributions and their own charges.
Mr. Curry: Will the Under-Secretary give way?
Ms Hughes: No, I shall not give way again.
Every year, the Opposition have predicted that local authorities would act irresponsibly and introduce huge average council tax rises. Each year since this Government have been in control, councils have proved Opposition Members wrong. The increase in average council tax has fallen as a result of our additional investment.
I was surprised at the hon. Member for Bath (Mr. Foster), who is usually sensible, for falling into the trap on council tax. He should know that council tax rises are the result not of Government funding, but of councils' overall spending decisions, for which they will be accountable to their electorates. On the comments made by the hon. Member for Eastbourne (Mr. Waterson) about political interference, I can say nothing more than that his arguments were breathtakingly shameless and that we shall take no lessons from Opposition Members on local government matters.
Under the previous Government, local councils were battered and bruised and their money and powers were systematically removed. It is this Government who have
provided stable and substantial funding to all councils. This year's settlement continues our commitment to invest.It being one and a half hours after the commencement of proceedings on the motion, Mr. Deputy Speaker put the Question, pursuant to Standing Order No. 16(1).
The House divided: Ayes 292, Noes 167.
AYES
Adams, Mrs Irene (Paisley N)
Ainger, Nick
Ainsworth, Robert (Cov'try NE)
Allen, Graham
Armstrong, Rt Hon Ms Hilary
Ashton, Joe
Atherton, Ms Candy
Atkins, Charlotte
Austin, John
Bailey, Adrian
Barnes, Harry
Barron, Kevin
Battle, John
Beard, Nigel
Begg, Miss Anne
Benn, Hilary (Leeds C)
Bennett, Andrew F
Benton, Joe
Bermingham, Gerald
Best, Harold
Betts, Clive
Blackman, Liz
Blears, Ms Hazel
Blizzard, Bob
Boateng, Rt Hon Paul
Borrow, David
Bradley, Keith (Withington)
Bradley, Peter (The Wrekin)
Bradshaw, Ben
Browne, Desmond
Burden, Richard
Burgon, Colin
Caborn, Rt Hon Richard
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Campbell, Ronnie (Blyth V)
Campbell-Savours, Dale
Cann, Jamie
Caplin, Ivor
Caton, Martin
Cawsey, Ian
Chapman, Ben (Wirral S)
Clapham, Michael
Clark, Paul (Gillingham)
Clarke, Charles (Norwich S)
Clarke, Eric (Midlothian)
Clarke, Rt Hon Tom (Coatbridge)
Clarke, Tony (Northampton S)
Clelland, David
Clwyd, Ann
Coaker, Vernon
Coffey, Ms Ann
Cohen, Harry
Coleman, Iain
Colman, Tony
Connarty, Michael
Corbett, Robin
Corston, Jean
Cousins, Jim
Cox, Tom
Cranston, Ross
Crausby, David
Cryer, John (Hornchurch)
Cummings, John
Cunningham, Rt Hon Dr Jack
(Copeland)
Cunningham, Jim (Cov'try S)
Darling, Rt Hon Alistair
Darvill, Keith
Davies, Rt Hon Denzil (Llanelli)
Davies, Geraint (Croydon C)
Davis, Rt Hon Terry
(B'ham Hodge H)
Dismore, Andrew
Dobbin, Jim
Dobson, Rt Hon Frank
Doran, Frank
Dowd, Jim
Drew, David
Drown, Ms Julia
Dunwoody, Mrs Gwyneth
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Edwards, Huw
Efford, Clive
Ennis, Jeff
Field, Rt Hon Frank
Fisher, Mark
Fitzsimons, Mrs Lorna
Flint, Caroline
Flynn, Paul
Foster, Rt Hon Derek
Foster, Michael Jabez (Hastings)
Foster, Michael J (Worcester)
Foulkes, George
Fyfe, Maria
Galloway, George
George, Rt Hon Bruce (Walsall S)
Gerrard, Neil
Gibson, Dr Ian
Gilroy, Mrs Linda
Godsiff, Roger
Gordon, Mrs Eileen
Griffiths, Jane (Reading E)
Griffiths, Nigel (Edinburgh S)
Griffiths, Win (Bridgend)
Grocott, Bruce
Grogan, John
Hain, Peter
Hall, Mike (Weaver Vale)
Hall, Patrick (Bedford)
Hamilton, Fabian (Leeds NE)
Hanson, David
Healey, John
Henderson, Doug (Newcastle N)
Henderson, Ivan (Harwich)
Hendrick, Mark
Hepburn, Stephen
Heppell, John
Hesford, Stephen
Hill, Keith
Hinchliffe, David
Hood, Jimmy
Hope, Phil
Hopkins, Kelvin
Howarth, George (Knowsley N)
Hoyle, Lindsay
Hughes, Ms Beverley (Stretford)
Hughes, Kevin (Doncaster N)
Humble, Mrs Joan
Hutton, John
Iddon, Dr Brian
Illsley, Eric
Jackson, Ms Glenda (Hampstead)
Jackson, Helen (Hillsborough)
Jenkins, Brian
Johnson, Alan (Hull W & Hessle)
Johnson, Miss Melanie
(Welwyn Hatfield)
Jones, Mrs Fiona (Newark)
Jones, Helen (Warrington N)
Jones, Ms Jenny
(Wolverh'ton SW)
Jones, Jon Owen (Cardiff C)
Jones, Dr Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Joyce, Eric
Kaufman, Rt Hon Gerald
Keeble, Ms Sally
Keen, Alan (Feltham & Heston)
Keen, Ann (Brentford & Isleworth)
Kemp, Fraser
Kennedy, Jane (Wavertree)
Khabra, Piara S
Kidney, David
Kilfoyle, Peter
Kumar, Dr Ashok
Ladyman, Dr Stephen
Lammy, David
Laxton, Bob
Lepper, David
Leslie, Christopher
Lewis, Ivan (Bury S)
Lloyd, Tony (Manchester C)
Lock, David
Love, Andrew
McAvoy, Thomas
McCafferty, Ms Chris
McDonagh, Siobhain
Macdonald, Calum
McDonnell, John
McFall, John
McGuire, Mrs Anne
McIsaac, Shona
McKenna, Mrs Rosemary
Mackinlay, Andrew
McNamara, Kevin
McNulty, Tony
MacShane, Denis
Mactaggart, Fiona
McWalter, Tony
Mahon, Mrs Alice
Mallaber, Judy
Marsden, Gordon (Blackpool S)
Marshall, David (Shettleston)
Marshall, Jim (Leicester S)
Marshall-Andrews, Robert
Martlew, Eric
Meale, Alan
Merron, Gillian
Michie, Bill (Shef'ld Heeley)
Miller, Andrew
Mitchell, Austin
Moffatt, Laura
Moonie, Dr Lewis
Moran, Ms Margaret
Morgan, Ms Julie (Cardiff N)
Mountford, Kali
Mudie, George
Mullin, Chris
Murphy, Denis (Wansbeck)
Murphy, Jim (Eastwood)
Naysmith, Dr Doug
Norris, Dan
O'Brien, Bill (Normanton)
O'Brien, Mike (N Warks)
O'Hara, Eddie
Olner, Bill
O'Neill, Martin
Organ, Mrs Diana
Pearson, Ian
Perham, Ms Linda
Pickthall, Colin
Pike, Peter L
Plaskitt, James
Pond, Chris
Pope, Greg
Powell, Sir Raymond
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Prescott, Rt Hon John
Prosser, Gwyn
Purchase, Ken
Quin, Rt Hon Ms Joyce
Quinn, Lawrie
Radice, Rt Hon Giles
Rammell, Bill
Rapson, Syd
Raynsford, Nick
Robertson, John
(Glasgow Anniesland)
Robinson, Geoffrey (Cov'try NW)
Rogers, Allan
Rooney, Terry
Ross, Ernie (Dundee W)
Rowlands, Ted
Roy, Frank
Ruane, Chris
Ruddock, Joan
Russell, Ms Christine (Chester)
Salter, Martin
Savidge, Malcolm
Sawford, Phil
Sedgemore, Brian
Shaw, Jonathan
Sheldon, Rt Hon Robert
Simpson, Alan (Nottingham S)
Singh, Marsha
Skinner, Dennis
Smith, Rt Hon Andrew (Oxford E)
Smith, Angela (Basildon)
Smith, Miss Geraldine
(Morecambe & Lunesdale)
Southworth, Ms Helen
Spellar, John
Squire, Ms Rachel
Starkey, Dr Phyllis
Steinberg, Gerry
Stevenson, George
Stewart, David (Inverness E)
Stewart, Ian (Eccles)
Stoate, Dr Howard
Strang, Rt Hon Dr Gavin
Straw, Rt Hon Jack
Stringer, Graham
Stuart, Ms Gisela
Taylor, Rt Hon Mrs Ann
(Dewsbury)
Taylor, Ms Dari (Stockton S)
Taylor, David (NW Leics)
Thomas, Gareth (Clwyd W)
Timms, Stephen
Tipping, Paddy
Touhig, Don
Truswell, Paul
Turner, Dennis (Wolverh'ton SE)
Turner, Dr Desmond (Kemptown)
Turner, Neil (Wigan)
Twigg, Derek (Halton)
Twigg, Stephen (Enfield)
Tynan, Bill
Ward, Ms Claire
Wareing, Robert N
Watts, David
White, Brian
Whitehead, Dr Alan
Wicks, Malcolm
Williams, Rt Hon Alan
(Swansea W)
Williams, Alan W (E Carmarthen)
Wilson, Brian
Winnick, David
Winterton, Ms Rosie (Doncaster C)
Woodward, Shaun
Woolas, Phil
Worthington, Tony
Wray, James
Wright, Anthony D (Gt Yarmouth)
Wright, Tony (Cannock)
Wyatt, Derek
Tellers for the Ayes:
Mr. Gerry Sutcliffe and
Mr. David Jamieson.
NOES
Allan, Richard
Amess, David
Arbuthnot, Rt Hon James
Ashdown, Rt Hon Paddy
Atkinson, David (Bour'mth E)
Atkinson, Peter (Hexham)
Baker, Norman
Baldry, Tony
Ballard, Jackie
Beggs, Roy
Beith, Rt Hon A J
Bell, Martin (Tatton)
Bercow, John
Beresford, Sir Paul
Blunt, Crispin
Body, Sir Richard
Boswell, Tim
Bottomley, Peter (Worthing W)
Bottomley, Rt Hon Mrs Virginia
Brady, Graham
Brand, Dr Peter
Brazier, Julian
Breed, Colin
Browning, Mrs Angela
Bruce, Ian (S Dorset)
Bruce, Malcolm (Gordon)
Burnett, John
Burns, Simon
Burstow, Paul
Chapman, Sir Sydney
(Chipping Barnet)
Chidgey, David
Chope, Christopher
Clappison, James
Cormack, Sir Patrick
Cotter, Brian
Cran, James
Curry, Rt Hon David
Davey, Edward (Kingston)
Davies, Quentin (Grantham)
Davis, Rt Hon David (Haltemprice)
Day, Stephen
Dorrell, Rt Hon Stephen
Duncan, Alan
Duncan Smith, Iain
Emery, Rt Hon Sir Peter
Evans, Nigel
Fabricant, Michael
Fallon, Michael
Fearn, Ronnie
Forth, Rt Hon Eric
Foster, Don (Bath)
Fox, Dr Liam
Fraser, Christopher
Gale, Roger
Garnier, Edward
George, Andrew (St Ives)
Gibb, Nick
Gidley, Sandra
Gill, Christopher
Gillan, Mrs Cheryl
Gray, James
Green, Damian
Greenway, John
Grieve, Dominic
Gummer, Rt Hon John
Hague, Rt Hon William
Hamilton, Rt Hon Sir Archie
Hammond, Philip
Hancock, Mike
Harris, Dr Evan
Harvey, Nick
Hawkins, Nick
Hayes, John
Heald, Oliver
Heath, David (Somerton & Frome)
Heathcoat-Amory, Rt Hon David
Horam, John
Howarth, Gerald (Aldershot)
Hunter, Andrew
Jack, Rt Hon Michael
Jenkin, Bernard
Keetch, Paul
Key, Robert
King, Rt Hon Tom (Bridgwater)
Kirkbride, Miss Julie
Kirkwood, Archy
Laing, Mrs Eleanor
Lait, Mrs Jacqui
Leigh, Edward
Letwin, Oliver
Lidington, David
Lilley, Rt Hon Peter
Livsey, Richard
Lloyd, Rt Hon Sir Peter (Fareham)
Llwyd, Elfyn
Loughton, Tim
MacGregor, Rt Hon John
McIntosh, Miss Anne
MacKay, Rt Hon Andrew
Maclennan, Rt Hon Robert
McLoughlin, Patrick
Madel, Sir David
Malins, Humfrey
Maples, John
Mates, Michael
Mawhinney, Rt Hon Sir Brian
May, Mrs Theresa
Michie, Mrs Ray (Argyll & Bute)
Moore, Michael
Moss, Malcolm
Nicholls, Patrick
Norman, Archie
Oaten, Mark
O'Brien, Stephen (Eddisbury)
Ottaway, Richard
Page, Richard
Paice, James
Pickles, Eric
Prior, David
Randall, John
Redwood, Rt Hon John
Rendel, David
Robathan, Andrew
Robertson, Laurence (Tewk'b'ry)
Roe, Mrs Marion (Broxbourne)
Rowe, Andrew (Faversham)
Ruffley, David
Russell, Bob (Colchester)
St Aubyn, Nick
Sanders, Adrian
Sayeed, Jonathan
Shepherd, Richard
Simpson, Keith (Mid-Norfolk)
Smith, Sir Robert (W Ab'd'ns)
Spelman, Mrs Caroline
Spicer, Sir Michael
Spring, Richard
Stanley, Rt Hon Sir John
Steen, Anthony
Streeter, Gary
Stunell, Andrew
Swayne, Desmond
Syms, Robert
Tapsell, Sir Peter
Taylor, Ian (Esher & Walton)
Taylor, John M (Solihull)
Taylor, Matthew (Truro)
Taylor, Sir Teddy
Tonge, Dr Jenny
Townend, John
Tredinnick, David
Trend, Michael
Tyler, Paul
Tyrie, Andrew
Viggers, Peter
Walter, Robert
Waterson, Nigel
Webb, Steve
Wells, Bowen
Whittingdale, John
Willetts, David
Willis, Phil
Wilshire, David
Winterton, Mrs Ann (Congleton)
Winterton, Nicholas (Macclesfield)
Yeo, Tim
Young, Rt Hon Sir George
Tellers for the Noes:
Mr. Peter Luff and
Mr. Geoffrey Clifton-Brown.
Question accordingly agreed to.
- That the Local Government Finance Report (England) 2001-02 (HC 158), which was laid before this House on 29th January, be approved.
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