Local Government Finance

Let me begin by correcting something that I said in a point of order last Wednesday. I said that the hon. Member for Lancaster and Wyre (Mr. Wallace) was paid by the Tote. That information was given to me and I used it in good faith, but I have since checked it and found it to be untrue. I therefore withdraw the remark. I welcome the settlement. Obviously it is a difficult settlement, as we all knew it would be. As was pointed out by my hon. Friend the Member for Ealing, Acton and Shepherd's Bush (Mr. Slaughter), in the past 10 years there has been a 40 per cent. real-terms increase in the amount given to local government, and clearly it is not possible for that to continue.