News story

4th December 2001

MP Challenges Minister In House Of Commons Over Council Funding Rules

Northavon MP Steve Webb this afternoon challenged Secretary of State
Stephen Byers over the slow pace of reform of the funding rules for local
councils. The MP was responding to a statement by the Secretary of State in which he announced funding allocations for councils for the coming year. The announcement continued to be based on the existing system of “standard spending assessments” which leaves South Gloucestershire at, or near, the bottom of the funding league table for schools and social services. As a result of continued under-funding from
central government, local council tax payers face a substantial rise this year simply to allow the council to maintain existing services.

Local Lib Dem MP Steve Webb responded in the House of Commons by challenging the Secretary of State to bring in the proposed new system of funding as swiftly as possible. He pointed out that South Gloucestershire was systematically “bottom of the pile” when it came to handing out central government cash, and said that local residents wanted a new and fairer system brought in straight away, rather than being phased in over several years. Responding, the Secretary of State said that the details of the new system would be published in a White Paper before Christmas and that thought would have to be given to the way in which the transition to the new system was organised.

Commenting after exchanges, Steve Webb said:

“All parties in South Gloucestershire agree that our area does not get a fair deal when central government divides up the cake between local councils. It is good that the Government is planning a reform of this unfair system, but local people simply cannot wait several more years for a better settlement. If the new system really is fairer, it should mean a bigger share for South Gloucestershire. Local people have waited long enough for a fair deal and there should be no further delays. In the mean time, we will have to face substantial council tax rises purely because of inadequate central government funding”.

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