UK Parliament / Open data

Departmental Spending

Proceeding contribution from Clive Betts (Labour) in the House of Commons on Thursday, 9 July 2020. It occurred during Estimates day on Departmental Spending.

That leads into another area. The Select Committee has just produced a report about cladding and other such issues. We have challenged the Government to produce funding through that report, so I am sure that we will take up that issue as well.

The change came when the Secretary of State appeared before the Select Committee. Suddenly, he was saying that they had asked councils to do things, but that they would be fully compensated for the things that they had been asked to do. Then there was a very general list. The Public Accounts Committee and the Select Committee, as well as the Local Government Association, have been trying to get more information on that. There is still a lack of clarity about precisely what will be funded. That is important, and quite different from the national health service, which seems to be given, rightly, “everything that it takes”—the commitment given to local councils.

We have had tranches of money—£2.16 billion then £500 million—given to councils to cover both extra costs and lost revenue, which is just as important for many councils as the extra costs they have incurred. However, the LGA is saying that by the end of June, according to the returns that went to the Ministry, the costs were £4.8 billion against the £3.7 billion received—a gap of £1 billion. The Government said they would give some help with lost income by compensating councils for 75% of the amount after the first 5% of losses, which is welcome, and somehow apportioning the lost revenue from council tax and business rates. There are two questions to ask about this. The Government have already included loss of income in the £3.7 billion compensation, so will the commitment to cover 75% be reduced? I see the Minister shaking his head; it would help if that was explained very clearly indeed.

Type
Proceeding contribution
Reference
678 c1202 
Session
2019-21
Chamber / Committee
House of Commons chamber
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