I have no doubt that communities such as mine, and perhaps the hon. Gentleman's, will be affected. I believe that we will see more poverty as people try to cope with much lower incomes.
In many instances, the gains that the Government suggest will be made by the working poor as a result of the £1,000 increase in the personal allowance for income tax will be wiped out by the reduction in council tax benefit. The theoretical 10% reduction will equate to a loss of £1.7 million for the Stockton authority area, £1.2 million of it in my constituency. Given the exclusion of pensioners from the change, those affected are likely to be hit by a 20% reduction, which will contribute to a further increase in poverty. The Government's proposals merely transfer one of the national costs of rising unemployment to councils and local taxpayers, creating a serious risk that every resident will face further cuts in services that are already under threat.
I do not often find myself sharing many opinions with Government Members, but I simply could not disagree with the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill), when he said:"““Those in greatest need ultimately bear the burden of paying off the debt””.—[Official Report, 10 June 2010; Vol. 511, c. 450.]"
As it is, the Bill tees up the poorest to bear the greatest burden. It neuters local authorities other than those in the most affluent areas, preventing their development, and it will lead to further job losses throughout the country, with no consolation for the nation as a whole. I will oppose the Bill tonight.
Local Government Finance Bill
Proceeding contribution from
Alex Cunningham
(Labour)
in the House of Commons on Tuesday, 10 January 2012.
It occurred during Debate on bills on Local Government Finance Bill.
Type
Proceeding contribution
Reference
538 c123-4 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
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Timestamp
2023-12-15 14:56:33 +0000
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