Oral question asked in the House of Commons, by Julia Goldsworthy (Liberal Democrat). It was answered on Tuesday, 9 March 2010 on behalf of the Department for Communities and Local Government.

Efficiency Savings

Question: The problem is that the Institute for Fiscal Studies thinks that that is simply not possible, and that deep cuts will follow in years ahead. Given that no credible detail is forthcoming from either the Government or those on the Conservative Front Bench, should the right hon. Gentleman not be doing the responsible thing and advising councils to prepare for the worst-case scenario pointed out by the IFS—that is, reductions of up 23 per cent. over four years from 2011?

Answer: The hon. Lady is wrong on both counts. In reply to an earlier question, I said that we have published a report from two respected local government leaders on precisely the measures that local government should be planning to take now to make the most efficient use of the available resources. As the House knows, however, the reality is that there has not yet been a comprehensive spending review for the next three-year settlement because we have been through a year of the most extraordinary economic change. The policies that we have implemented have seen the Government, the country and local government through the crisis, because we rejected the calls from the Opposition to cut our spending last year. It would have been irresponsible to try to project exact levels of spending for four years from today, given the uncertainties of the past year. Clearly, spending plans will have to be set out, but the timing is a matter for my right hon. Friend the Chancellor of the Exchequer.

Secondary information