Local Government Finance

I start by thanking the Minister for providing a copy of his statement in advance—but I am afraid that that is where the thank yous finish. There were no surprises in the statement, just bad news. Social care, teachers' salaries and equal pay remain underfunded, while capping and the dreaded council tax remain in place. There was an opportunity to reform the council tax completely and replace it with a tax based on people's ability to pay, but that opportunity was squandered, and the most unfair tax of all continues to exist. Council tax, which in the past 11 years has increased by 86 per cent. in the Minister's constituency and by nearly 60 per cent. in that of the Secretary of State, will continue to hit the most vulnerable hardest, and to rise at a rate above the rate of inflation. I welcome the fact that there has been a start at reversing the trend towards greater ring-fencing, which has accelerated under the Labour Government. I also welcome the cut in performance indicators, and the stability provided by the three-year settlement. That, however, does not outweigh the bad things in the statement. Let me ask the Minister three specific questions. The Government have at long last recognised that migration is an issue. Can the Minister say when he expects the national statistician to produce proposals that will enable migration figures to be taken into account more rapidly in the allocation of grant? Will he confirm what I think he said—that he will ensure that any funding formula changes take account of the fact that the metropolitan fire and rescue services deal with the most vulnerable and deprived inner-city areas, with all the associated costs? Finally, what real average increase in council tax does he expect in the next financial year? I regret the fact that the Minister is still observing the pretence that local government Ministers come to the House dressed in Santa costumes to deliver bountiful settlements that will pay for the turkey and the trimmings. They do not, and he did not today. This settlement might just about pay for a battery chicken, but it will not even cover the cost of the gas needed to cook it.