Local Authorities: Inflation

4. What steps he is taking to help local authorities with budgetary pressures caused by inflation.

I am not sure that I can respond with quite so much brevity, Mr Speaker!

In the most recent financial settlement, the Government provided billions more in taxpayer subsidy to support councils, including funds to mitigate inflation. Councils are always under a duty and a responsibility to improve and transform services and make them more efficient, but the Government continue to support them when we are able to do so.

A recent report from our Select Committee highlights the fact that local authorities’ revenue funding from central Government has been reduced dramatically since austerity began in 2010, and notes that levelling-up funds generally do not replace grant funding because they are capital, not revenue. Can the Minister be honest and admit that the latest local government finance settlement will entrench and widen already huge regional inequalities, leaving the levelling-up agenda in tatters?

Absolutely not. [Laughter.]

I am sure that many Members of the House will share my experience that, on the doorstep, an issue that comes up almost more than anything else is potholes. Barnet Council is clearly failing in its duty to fill them in. Does the Minister have any advice for our failing local council on how it can improve its record on filling in potholes?

My right hon. Friend is absolutely right to say that one of the core responsibilities of local councils is to do the basics, and one of the basics is potholes. That is why the Chancellor recently announced additional money for local councils to ensure that they are filled, and it is for local councils to translate that into reality on the streets.

I call the shadow Minister.

Under a Government who created a cost of living crisis that has sent inflation levels soaring, there are now 4.2 million children living in poverty, and 70% of them are in working households. One third of children in the west midlands and 200,000 children in the north-east live below the poverty line. Shockingly, a quarter of all children growing up under the Scottish National party in Scotland now live in poverty. What support can local authorities expect in order to deal with this increase in child poverty, and is the Department’s decision to award levelling-up funding to only one in four deprived areas a factor in the heartbreaking levels of child poverty we see in Tory Britain today?

The Government offer a huge amount of support to the most vulnerable in our society. We have seen that all the way through covid and through the inflation and energy issues, and we will continue to do it through the welfare system as a whole. The best way out of poverty, where it is possible, is to work, and that is why this Government are ensuring that work pays, work matters and work achieves.