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Local Government: Finance

My Lords, in thanking the noble Baroness for repeating the Statement, I deprecate the very last minute at which the data came forward. It is a bit like the late arrival of the Localism Bill; it shows a Government not quite in control of their agenda. We reject the assertion that these are necessary reductions in public expenditure, just repeated by the noble Lord. Of course, the deficit must be dealt with and, of course, we, as an opposition, have set out credible means of dealing with it. One example is that we would not be spending £2 billion to £3 billion on unnecessary top-down reorganisation of the National Health Service. Even if we were to accept the programme of overall expenditure set out by the Government—which we do not—how do they justify local government having such a savage component to deal with? It is worse than for any other department. What is the justification for that? The noble Baroness spoke of the focus on the most vulnerable, and I understand that the Government have come up with this revenue spending power comparison—looking at like for like in the current year and next year. I understand that it includes council tax potential and grants. Incidentally, I have a question for the noble Baroness along the way. When is a transfer from central government a grant and when is it a handout—an unfortunate term? To get back to the comparison on revenue spending power between authorities, taken with the assertion that we are focusing on the most deprived, why is it, when comparing the current year with next year, on the Government’s own figures, that Hackney loses 8.9 per cent, or £33 million, and Kensington and Chelsea loses 5.5 per cent, or £11 million? How is it that Tower Hamlets loses 8.9 per cent, or £34 million, but Barnet loses 2.6 per cent at just £7.7 million? How can Hartlepool lose 8.9 per cent, or something like £10 million, and Rutland 2.2 per cent? How does the noble Baroness justify that within the parameters of the settlement?