David Simmonds

That is a really good example of where the “how” matters. The theory, which was certainly built into the funding formula under the last Conservative Government, and indeed, the coalition Government, was that growth in housing numbers, which many Members have spoken of as important, came with the new homes bonus. So that was additional revenue funding coming into the local authority as a result of that growth. The theory was that the infrastructure spending would be followed by growth in revenue as a result of those locally made decisions. Clearly, I understand that the Minister’s Department has taken the decision to cancel that as part of the funding formula, and she will no doubt set out what the Government’s new strategy will be. But what the hon. Gentleman describes is a really good example; it is no good having one without the other. When we look at the ICON report and other consistent reports about this issue over the years, they highlight the significance of businesses as the backbone of any local community. The availability of work, in particular, is critical not just to the economic wellbeing of a community, but to the physical and mental health of those who live there. There is ample evidence, from the UK and all around the world, of the benefits that that brings. As we all know, it is a statistical fact that no Labour Government have ever left office having reduced unemployment—it is always higher when they leave office than when they take it—and the early-warning signs so far are not good. None the less, I hope that the Government will succeed in that agenda.