9. What assessment he has made of the effect of the local government finance settlement on the most vulnerable communities. (902037)

The provisional local government finance settlement for 2014-15 includes protections for the most grant-dependent authorities. Councils facing the highest demand for services continue to receive substantially more funding. No council will see a reduction of more than 6.9% in overall spending power next year.

The elderly, infirm and immobile are often unseen, unheard and most dependent on local authority social care. My own local authority of Sandwell has been forced to cut £75 million from its budget by 2015 and now faces a further £25 million cut by 2017. The Government’s better care fund is totally inadequate to compensate. What is the Minister going to do about it?

The spending power in Sandwell is still significantly above that in many other local authorities. The spending power per head in Sandwell, where the hon. Gentleman’s West Bromwich West constituency lies, is £2,481, £900 more than in many districts in the south of England.

21. Local authorities now also receive funding through the public health allocation. Has the Minister had any discussions with the Department of Health about cities such as Birmingham that have a disproportionately high young population, as they are disadvantaged by the fact that the funding formula has a higher weighting for those aged over 60 and 65? Are the Departments talking to each other to ensure that the young cities are not doubly hit? (902052)

I take the hon. Lady’s point, but the transfer of public health from the NHS to local government is a welcome reform by this Government that builds on what was done on public health in her own city by Joe Chamberlain back in the 19th century. It is a major opportunity for local government to address health inequalities, including in cities such as hers.

Both the National Audit Office and the Local Government Association have expressed concerns that unless there is a change of policy, some councils are simply not going to be able to make ends meet over the next two or three years. The Government have powers under section 31 of the Local Government Act 2003 to help councils in that situation, but Ministers have also pointed out that there is potential to use a referendum to increase council tax. Who would vote for an increase in council tax in such circumstances unless the Government make it absolutely clear in advance the criteria under which they will use section 31 powers? Can the Minister tell us what they will be?

The Government will make the referendum criteria clear shortly, but council tax bills are a major part of every household’s budget—often far more significant than utility bills—and it is right that, rather than mandating local authorities or imposing caps as previous Governments did, this Government should give those in local government the discretion to raise council tax if they wish while expecting them to go to the people to get endorsement of that decision.

Of the 30 areas in England with the highest black and minority ethnic populations, 29 face cuts above the national average and eight are dealing with cuts that are double that average. Will the Minister explain why BME communities are being hit so hard and will he agree to look at that?

I am the Minister responsible for race equality and I take the issues that the hon. Gentleman raises seriously. Perhaps we can have a separate discussion about it. Local authority settlements are not predicated on that basis, as a whole basket of factors goes into them. The Government are still putting substantial amounts of money into our integration budget to ensure that communities cohere, through measures such as specific funding for English language.