Local Government Finance

I have to challenge my hon. Friend on his comment about inflation-busting rises. He has said that the settlement would"““make the system fairer to authorities with a relatively low council tax base.””" Why, then, has Gateshead—91 per cent. of whose households are in bands A to C—been given a settlement of 2 per cent. when inflation is almost 4 per cent. and the average for the metropolitan authorities was 4.1 per cent.? Why is that four-star authority, which is often held up by Ministers as a beacon of good Labour local government, constantly given such poor settlements? What is wrong with the formula, and when will the Minister put it right?