Local Government Finance

There is nothing wrong with the formula, which is the best and fairest way that we have established for distributing the money available. Last year we consulted on whether to alter the formula, and I confirmed the decisions that I took as a result of that in my statement to the House on 6 December. The fact is that next year Gateshead will get more than £6.5 million extra overall. Gateshead is also protected by the system of floors, which means that all councils in all regions will get an increase in the core formula grant in each of the next three years. I can tell my hon. Friend that there were, and are, those who argue against the floor system that the Government introduced in 2000. If I had listened to their arguments and representations, my hon. Friend's authority might not have been as well off as it is today.