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Local Government: Finance

My Lords, did the Minister notice that the Government were accused by the noble Lord, Lord Beecham, of suffering from a serious medical condition called ““deficit obsession disorder””? Has she also noticed that a new disease is now prevalent on the Benches opposite? As my noble friend pointed out, the previous Government, when in government, had planned to make substantial reductions. However, now that they are in opposition, they have a serious medical condition called ““ignore the deficit disorder””. I listened carefully to the noble Lord and did not hear a single suggestion as to any reduction that could be made. Everybody knows that this has to be a very tough settlement. It is not the end of local government as we know it. A thousand years ago I was Minister for local government. I sense that over the years the constraints on local government and how it has to vie between different expenditures have grown and grown with greater Treasury control. The best hope and a big help for local government going into this difficult time is maximum flexibility so that it can use its funds in ways that make most sense within its own area. I hope that that will be possible within this settlement.