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Local Government Finance

I feel suitably constrained by your introduction, Mr Deputy Speaker. It is a great pleasure to follow the right hon. Member for Leeds Central (Hilary Benn), not least because he is so eloquent and sets out such a strong case for local government. Of course, he knows a thing or two about it, as he was in local government before he arrived in this place. My starting point is that this is the second year of a two-year settlement. We must consider how far the Government have departed from that settlement in this second year. The reality is that there been improvements to the financial settlement for local government. The one thing for which local government has cried out for many years is certainty over funding. Even if it is bad news, it is better to be certain about what will happen. I am one of those who praised the previous Government for introducing a three-year settlement, as it was probably one of the few things they did well. Even though the settlement for many local authorities was not good, at least it was certain and everyone knew what would happen. I listened as many Opposition Members intervened on the Minister to ask about the reductions that their councils will suffer. When fundamental changes are made to any type of funding formula and any process of local government funding, there are bound to be winners and losers. One problem that has been associated with local government financing for so long, as the Minister rightly articulated, is the fact that the funding formula is horrendously complicated and virtually no one understands it. Figures are put in, indices are changed, the numbers are crunched and the figures come out. If those figures are not to everyone's liking, people seek to change the indices to make the facts suit the result that they want.