---

Local Government Finance

Before we have a barrage of interventions, let me explain to Opposition Members how we did so. For a start, my hon. Friend's local council had an 8.8% reduction in spending power, which was the highest of any authority represented in the House, yet he made the comments that he did. We kept the floors and damping in place, we introduced the transition fund, which continues this year, and we did something that no Government of any size or colour had ever done: we increased the needs index from 73% to 83% in the formula grants.