Select Committee on Economic Affairs Minutes of Evidence


Examination of Witnesses (Questions 460 - 462)

TUESDAY 11 DECEMBER 2007

Sir Simon Milton, Councillor Colin Barrow, Mr Andrew Blake-Herbert, Mr Mick Gallagher and Ms Tracy Turner

  Q460  Lord Macdonald of Tradeston: There was my other question: why not just put up the taxes and the wealthy could pay for the poor?

  Councillor Barrow: We could put the council tax up but the scale of the problem is very much larger than that. An £18 million funding shortfall and a £40 million council tax base shows the degree of the issue that we are dealing with. It is too big a problem for the council tax.

  Sir Simon Milton: If the council was to increase its budget to the maximum permitted under the Government cap of 5%, it would generate another £1.5 million, so it is nothing like the scale that we are talking about.

  Q461  Lord Lawson of Blaby: Just one quick follow-up from one of these. We heard earlier in the very interesting session that we have had today some pretty convincing examples of where the official statistics of the immigrants of particular local authority areas are way, way out and way below what you, with good reason, believe to be the population. How much success are you having in persuading the Government that your figures are right and their figures are wrong and that they should act accordingly?

  Sir Simon Milton: We have had great success in persuading the Government that their figures are wrong, much less success in persuading them that our figures are right. They acknowledge the scale of the problem with the ONS, and I believe ministers, in good faith, wish to see this fixed because they are worried above all about the credibility of the ONS and the knock-on effects that has in all areas of public policy-making. The most difficult thing is going to be to find ways which have credibility to apportion population within the UK. They can probably, with more effort and more resource, crack the nut of how many people are coming into the country and crossing our borders but it is the distribution that is most difficult. If there is one thought I would wish to leave the Committee with, it is that there is no doubt that this country has benefited hugely. The DWP figures, which we accept, talk about a net benefit to the UK of £40 billion, but that is felt to the national exchequer. The costs of handling that and absorbing that are felt locally, but currently there is no effective way of making sure that the benefits nationally find their way to the right localities.

  Mr Blake-Herbert: Just to add to that, Slough has been challenging the figures quite publicly for about two and a half years now.

  Q462  Lord Lawson of Blaby: I know.

  Mr Blake-Herbert: I think we are very much at the point where people understand and realise that the official statistics are not accurate enough. To be fair to the Office for National Statistics, they have not got access to all of the national data sources that are available and they are trying to do the best they can with what they do have available and it will take time for them to be able to get that access. The task force which they have set up should enable that to happen and, as Sir Simon has said, we should be able to get more accurate figures going forwards, but the issue for me is about the short term impact that has on local authorities, hence the Local Government Association's call for the £250 million. Whilst the Office for National Statistics are away trying to improve those figures so we can get more accurate numbers at a local level, it is very important that we get some funding put in place through a specific grant that local authorities can call on to enable us to support both new migrants but also the current indigenous population in the right way.

  Chairman: May I thank you very much. I got the feel from my colleagues that they found your answers very helpful and germane to what we are considering and we are extremely grateful to you for coming along and answering our questions in this way. Thank you very much indeed.





 
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