17:39 - The House divided: - Ayes: 238 / Noes: 0 - Question accordingly agreed to.
Andrew Gwynne
I will take no lectures from a Member who voted to cut the bank levy by £5 billion. I politely point him towards the “Grey Book”, which we published with our manifesto, “For the many, not the few”—I am sure it is well thumbed on the Government Benches. In our manifesto we pledged to give, this year and every year, an additional £1.5 billion for local councils and where we—[Interruption.]
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
I will tell him.
Andrew Gwynne
The Secretary of State says he will tell me. I am glad that he is looking into Labour policy development. Perhaps he ought to consider his own policy development on these matters, because the Government are so woefully lacking in any such proposals. Our proposal was fully costed, with £500 million for early years, £8 billion for social care—
The Secretary of State for Housing, Communities and Local Government (Sajid Javid)
I welcome the opportunity to respond to this debate and to set the record straight on the Government’s support for local government and the communities that it serves. First, however, let me take this opportunity to express my condolences to the family and friends of Councillor Clarissa Slade—one of the youngest councillors in the country, who died, sadly, earlier this week.
Every day, dedicated councillors and officers in local government deliver vital services on which we all depend: on that much, the shadow Secretary of State and I agree. I have the highest regard for them. They are, quite simply, at the frontline of our democracy and the foundation on which strong, thriving communities are built. That said, these have been challenging times for local government, although it has been notable how impressively many councils have stepped up to make hard-earned taxpayers’ money go much further—not just protecting services, but often improving them. The fact that satisfaction levels among residents have remained broadly steady is testament to that. However, I recognise, of course, that these hard-won gains have been achieved in a very difficult financial climate.
Maria Eagle (Garston and Halewood) (Lab)
What does the right hon. Gentleman have to say to Liverpool City Council, which has lost 64% of its Government funding so far? We have not even reached 2020 yet.
Sajid Javid
I hope that the hon. Lady will appreciate what I am about to come on to: an understanding of how we got into this situation and how we can avoid getting back into it. Liverpool City Council is part of the Liverpool city region, which has been getting a lot more money recently—especially for investments, to encourage growth and jobs. If other members of the Liverpool city region, such as Wirral, for example, stopped wasting a quarter of a million pounds every year on some council Pravda, perhaps they would spend money more efficiently.
Alberto Costa (South Leicestershire) (Con)
My right hon. Friend mentioned a moment ago that he is going to explain how we got into this position. Will he elucidate what was meant by the last Labour Chief Secretary to the Treasury in the note that said that there was no money left?
Sajid Javid
I thank my hon. Friend, who brings me to precisely the point I was about to make, which will help explain exactly why the last Labour Chief Secretary left that note for his successor.
In considering how this climate was created, we need to step back and remember what the Government inherited in 2010: the biggest budget deficit in peacetime, of £150 billion, and Labour’s great recession—the deepest in almost 100 years. If that was not enough, there was also the biggest banking bail-out ever: just one bank bailed out to the tune of £50 billion.
Sajid Javid
If the hon. Lady is going to apologise for what Labour did, I will give way.
Catherine West
I thank the Secretary of State for his joke. It is not down to Members who were not in the House to apologise.
What is the right hon. Gentleman’s Department’s estimate about how many more Northamptonshires we are going to see in the next four years? Will 10, 20 or 30 local authorities crumble? How many chief execs will have to write their own notes about there being no money left because of the Tory cuts?
Sajid Javid
The hon. Lady says that it is not for her to apologise, but she stands there supporting the party that brought this country to its knees economically. It was responsible for the largest, deepest recession that this country has seen for 100 years—a recession, by the way, that led to an increase in unemployment of half a million people. Go and tell them that it is a joke.
The Labour party fails to recognise the gravity of the situation that it created in this country and the legacy that it left behind. It is no exaggeration to say that thanks to Labour, our country was on the brink of bankruptcy. Had it been allowed to continue in office, had we continued down that road, all public services, including local government, would have been decimated.
Wes Streeting
I am grateful to the Secretary of State for giving way. This is obviously a rehearsal for the local election campaign.
As he knows, people on these Benches have held a mirror up to our party over the issue of anti-Semitism. The Secretary of State does not need any lectures about Islamophobia, not least given his recent experiences. However, I ask him to hold a mirror up to his party, given the disgraceful campaign in London two years ago and because of the dog-whistle politics already being seen in the London election campaign. Islamophobic material has even been shared by Conservative Members of Parliament. We all have to root out prejudice in our politics, and that includes the uncomfortable experience of holding a mirror up to our own parties and our own values.
Sajid Javid
I am not sure what that has to do with the debate, Madam Deputy Speaker, but I am happy to answer the hon. Gentleman’s question, if that is okay with you—he made the point in good faith. He is right about the importance of making sure that we all in the House, regardless of whether we are Back Benchers, Front Benchers or leaders of political parties, respect each other at all times, whether during election campaigns or not. I very much agree with him on that. I heard him speak very passionately just a couple of days ago in Parliament Square, when he rightly emphasised the point. I very much agreed with him then, too.
Mr Jayawardena
Following what my right hon. Friend has just said, I have seen—I think we all have—targeted and in some cases public campaigns against hard-working councillors and officers of councils by some, sadly, in the Labour party. Is my right hon. Friend concerned about reports that councillors are being intimidated simply for considering how best to deliver for their residents?
Sajid Javid
I am very concerned about the intimidation of councillors, which is, of course, wrong at every level. Decent Opposition Members will recognise the intimidation that there has been, especially in London, of Labour leaders. Just yesterday, there were reports of a meeting of the hard left neo-fascist Momentum group, which was trying to remove Wandsworth councillors. We have all heard about Claire Kober, who was removed from Haringey Council—and who, by the way, talked about the sexism, intimidation and bullying that she suffered, including the anti-Semitism in her own party that seems to be defended by the Leader of the Opposition at every opportunity. We have also heard about Warren Morgan in Brighton and Hove, and about Jon Clempner. The list goes on. I very much agree with my hon. Friend that we all have to end this kind of intimidation in politics, but this is particularly a lesson for the Labour party.
Paula Sherriff (Dewsbury) (Lab)
Along with every other Member, the Secretary of State must have noticed the rise in homelessness across our communities. This is happening not just in our cities but in our towns and even our villages. Does he agree that some of the cuts to peripheral services such as mental health services, housing services and Sure Start centres have contributed to this rise in homelessness, which had been greatly reduced under the Labour Government?
Sajid Javid
I share the hon. Lady’s concern about the rise in homelessness. It is almost 50% lower than it was at its peak in 2003, but it is still too high, and she is right to point out that it has been rising. All hon. Members should be concerned about that. This is why it is important that we should continue to help those programmes that can prevent homelessness and those that can help those who find themselves in that difficult situation. She might be pleased to know that a recent pilot in Southwark of some of the measures that will be put in place across the country in April as a result of the Homelessness Reduction Act 2017, which had cross-party support, has resulted in a one-third fall in homelessness acceptances. I hope that those are the kinds of measures that we can all support.
Maria Caulfield
I tried to intervene on the shadow Secretary of State earlier to ask about Labour’s proposals to raise money for local councils through a land value tax, which is also known as a garden tax. Such a tax would see families whose properties were worth £300,000 paying an average of £4,500 a year. What is the Secretary of State’s view on those proposals?
Sajid Javid
I am pleased that my hon. Friend has raised that point. A moment ago, I talked about how Labour had brought our country to the brink of bankruptcy and how, given the chance, it would do it all over again. She has just illustrated that point. All that Labour knows is borrow, borrow, borrow and spend, spend, spend, and it wants hard-pressed taxpayers to pick up the bill. She mentioned Labour’s garden tax. It is interesting that the shadow Secretary of State did not want to dwell on that, but it appeared in Labour’s 2017 manifesto, and it was calculated at the time that it could result in a charge of £3,700 a year for the average home, which is roughly £2,000 more than the current band D council tax. That reminds me that the hon. Member for Derby North (Chris Williamson) was recently sacked from the shadow Front Bench for exposing Labour’s plans to double council tax. So the facts are out there, and my hon. Friend is absolutely right to raise that point.
Sajid Javid
I will give way in a moment.
It has taken titanic efforts to turn the situation round and rebuild our economy, with both central and local government having to find new ways of delivering essential services while delivering value for money. The country cannot afford a return to Labour’s ways of spend, borrow and bust.
Helen Hayes
I was not planning to intervene on the Secretary of State, as I am hoping to speak later, but the hon. Member for Lewes (Maria Caulfield) talked about Labour’s proposals for a land value tax, and I want to correct the record on that. The Housing, Communities and Local Government Committee is currently undertaking a cross-party inquiry into the merits of the land value tax, which has been tried and tested in many European countries and which has many variants. I hope that the Secretary of State will take seriously the recommendations of the Select Committee when we report in due course.
Sajid Javid
The hon. Lady gives me the opportunity to highlight Labour’s tax plans once again. She says that Labour is not considering a land value tax, but perhaps she is not aware of what Councillor Sharon Taylor of the Local Government Association Labour group said just a few days ago, on 20 March. She said that she would like to see increased freedoms for councils from day one of Labour Government and that this should include
“the ability to look at local taxes such as land value tax”
and a tourism tax. Labour’s plans are all about tax, tax, tax. That is the only thing it knows.
There is no doubt that local authorities are stepping up to the challenges that they face and demonstrating real ambition and creativity to drive efficiencies at the same time as protecting frontline services. Let me share a few examples with the House. Suffolk County Council has used advanced technology to understand what is behind the service pressures generated by troubled families. Since that work began, the council has saved some £10 million and increased the capacity of its system to focus on priority cases. South Cambridgeshire has set up its own housing company to provide innovative solutions to meet local housing need. The company will expand its portfolio of properties, investing approximately £100 million over the next five years. This will generate an additional £600,000 per annum for the council.
Many councils have taken a more radical approach to restructuring to do better for their communities. The benefits can be enormous when local areas look beyond lines on a map and party differences and find new ways to work together. That is what Suffolk Coastal and Waveney district councils have done to create a new district council: East Suffolk. That culmination of years of collaboration is expected to yield annual savings of more than £2 million. There are also mergers of Forest Heath and St Edmundsbury to form West Suffolk, which is estimated to generate a saving of over £500,000 each year, and of West Somerset and Taunton Deane to form Somerset West and Taunton, which will lead to transformational change and annual savings of some £3 million.
Mike Amesbury
Will the Secretary of State clarify something? Given the pressures facing local government up and down the country, why has £817 million in underspend been given back to the Treasury?
Sajid Javid
I gently say to the hon. Gentleman that he is demonstrating his ignorance of how Government financing works. If he really thinks that that is issue, perhaps he can explain why that figure includes £65 million for affordable housing returned by the Mayor of London? Has he asked his colleague that question? Perhaps he can also explain why in Labour’s last full year in office, when the current shadow Housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), was the Housing Minister, £240 million of housing and regeneration funding was returned?
Ruth Cadbury
The right hon. Gentleman lists several initiatives by several councils, but how many of those initiatives will make up the £6.8 billion by which the cross-party LGA estimates that councils will be in deficit? His Government have kindly offered £1.3 billion, so how will all those initiatives make up that enormous gap? I do not believe that it is possible. Finally, what has he done to ensure that his Department is no longer the worst funded of all Departments? It is facing the greatest cuts, and the greatest number of services across the pitch are being affected.
Sajid Javid
I will come on to the local government financial settlement shortly, but if the hon. Lady is so concerned about the resources that local government receives, why did she vote against a real-terms increase for the next two years for local authorities? She can perhaps reflect on that while she waits.
Returning to the reforms that councils are making, some authorities are opting for unitarisation. In Dorset, for example, the nine existing councils will be abolished to create two new unitary councils, generating annual savings of approximately £28 million. I have announced that I am minded to replace the existing five councils in Buckinghamshire with a single council for the area, which could generate savings of £18 million.
Sir Edward Davey (Kingston and Surbiton) (LD)
Despite all the efficiency gains that some local authorities can generate, some authorities are in genuine difficulties, as we have seen in Northamptonshire. What advice would the Secretary of State give to Members and council leaders where councils are struggling to balance their budgets and are considering section 114 notices? How should such considerations be linked to Members of Parliament so that we can work together to tackle the difficult situations that many communities are dealing with?
Sajid Javid
I do not know whether the right hon. Gentleman was present for the statement I made yesterday on Northamptonshire County Council, but the independent inspector specifically concluded that the situation was not due to a lack of funds but to the mismanagement of funds and other issues. However, the right hon. Gentleman makes a wider point that councils can face certain financial difficulties even if they are managing their finances well, and those councils should rightly make maximum use of the available flexibilities. If they want to go further, they can try to get the support of local people through a referendum. In the longer term, we need a fair funding review, to which the hon. Member for Bath (Wera Hobhouse) recently referred, to ensure that the system distributes funding more fairly. The recently closed consultation received some 300 representations, and will be going through them.
Gareth Thomas (Harrow West) (Lab/Co-op)
In his comments on the wider fiscal position, the Secretary of State has failed to mention the former Chancellor of the Exchequer, who was sacked by the Prime Minister for gross incompetence—a decision with which the Secretary of State presumably agrees.
The Secretary of State for Health and Social Care and the Secretary of State for Defence have run very public campaigns for more funding for their Departments. When will the Secretary of State for Housing, Communities and Local Government develop some cojones and do the same for local government?
Sajid Javid
If the hon. Gentleman listens to the rest of my speech, perhaps he will appreciate the issues and challenges on financing and how they are being addressed.
I referred a moment ago to some of the changes that councils are bringing about in their structure, and it is important in all those cases that the changes are led from the ground up. Where that is the case, we will not hesitate to work with those councils and to take them seriously.
Mr Marcus Jones
The quantum of local government finance and fair funding across the system is extremely important, but does the Secretary of State agree that how money is spent is also extremely important? I use the example of the appallingly run Labour Nuneaton and Bedworth Borough Council, which has overspent by £1.5 million on setting up a council depot. Does not money have to be spent in a better way?
Sajid Javid
Typically, my hon. Friend makes an excellent point. He speaks from his years of experience as a Local Government Minister, and he cites the excellent example of misspending by Nuneaton. Further up the road from Nuneaton, he could equally have picked Birmingham City Council, which has been in a shambles because of repeated mismanagement by a Labour administration. We shall see what the verdict of the electorate is in a few weeks’ time.
Wera Hobhouse
Of course nobody in this House would condone mismanagement of council finances, but Northamptonshire’s biggest budget overspend was on adult social care and children’s services. It was not mismanagement by the council as such.
Sajid Javid
I would be happy to send the hon. Lady a copy of the inspector’s report to read. She will see that the inspector was clear in his independent analysis that the problem for Northamptonshire was not a lack of funds.
Paul Scully
My right hon. Friend is making a fantastic speech about why local choices matter and about trusting councillors. We heard earlier about the Minister for Policing and the Fire Service campaigning against a library closure. That library, Hatch End library, is in Labour-run Harrow—the other half of his constituency is in Hillingdon—so Labour Members might want to speak to the shadow Chancellor, who enjoys all his libraries not only being open but having been refurbished over the past few years because his constituency is in Conservative-run Hillingdon. Local choices matter.
Sajid Javid
My hon. Friend makes a powerful point, and the shadow Chancellor is very lucky to live in a Conservative-run borough—perhaps he secretly votes Conservative in council elections to keep it that way.
Madam Deputy Speaker (Dame Rosie Winterton)
That is not a point of order but a point of debate. A lot of people want to speak in this debate, so Members should not raise spurious points of order. If the hon. Gentleman wants to intervene on the Secretary of State, he can do so.
Interventions should be short from now on, because there is a lot of pressure on time.
Sajid Javid
We recognise that our support to councils means nothing without the right funding and resources. To that end, we published the final settlement for funding local authorities in England a month ago. The settlement equates to a real-terms increase in resources to local government over the next two years—once again, it is worth reminding the House that it was a real-terms increase that the Labour party voted against. This settlement forms part of a four-year settlement that gives English councils access to more than £200 billion in funding in the five years to 2020. That gives councils greater freedom and flexibility over the money they raise, in recognition of the fact that no one knows their local areas—the opportunities, challenges and pressures there—better. This settlement strikes a balance between relieving growing pressure on local government and ensuring that hard-pressed taxpayers do not face ever-increasing bills.
Tom Pursglove (Corby) (Con)
Does my right hon. Friend share my frustration that, as happens on police funding and the NHS, on local government Labour raises lots of concerns about a lack of funding and then votes against the solution? Does he think that in the upcoming local elections people should judge the Labour party on its deeds, not its words?
Sajid Javid
My hon. Friend makes an excellent point. We saw the same again recently on the cut in stamp duty; Labour talks about helping people to buy their first home, yet it voted against a cut in stamp duty. There are many such examples and it is incumbent on all of us in this House to make sure we know what Labour really stands for.
The settlement comes in the third year of a four-year deal that was accepted by 97% of councils in return for publishing efficiency plans. As I said earlier, many councils have made the most of the certainty and stability this offers to plan ahead and drive commendable efficiencies. We will continue to work with the sector to not just deliver better value for money, but really transform services. In all, this settlement answers calls from councils, over many years, for greater control over the money they raise and the tools to make this money go further. This is the approach we have taken across the board: listening to local authorities and responding to what we hear.
James Cartlidge
On greater control, in Suffolk we are very pleased to be one of the 10 pilot areas for the 100% retention of business rates. Has my right hon. Friend given any consideration to allowing councils to set the level of business rates?
Sajid Javid
I will come on to discuss the pilots in a moment, but the good thing about them is that all the local authorities involved, including Suffolk, will now be able to experiment and see what they can do to help raise those local rates by having more incentives for businesses and attracting more businesses to the area. One clever way of getting more revenue is by getting more businesses into the area.
As we look at the resources of local authorities, we need to start looking at creating a whole system of local government finance that will be fit for the future. The current formula for financial allocations had served local areas well over the years, but a world of constant change, with big shifts in demographics, lifestyles and technology, demands an updated and much more responsive way of distributing funding. That is why there are questions over the fairness of the current system, which is why I was pleased to launch a formal consultation on a review of councils’ relative needs and resources in December. That closed recently and I am grateful to everyone who responded. This was not just a paper exercise; we have an unparalleled opportunity here to be really bold and ambitious; to consider, with the sector, where the most up-to-date data and evidence lead us, and to create a new system that gives councils the confidence to fully grasp the opportunities and challenges that lie ahead. We aim to introduce this new approach in 2020-21.
That is also when the latest phase of our business rates retention programme will get under way. It is a programme that gives local authorities powerful incentives to grow their local economies, and so far it has been a resounding success. Councils will keep some £2.4 billion more of their business rates next year alone; this a significant revenue stream, on top of their core settlement funding.
James Heappey (Wells) (Con)
The retention of business rates is indeed a huge opportunity for councils such as Somerset’s, which was so disappointed not to be part of the business rates retention trial. Will the Secretary of State reassure us that all that he has learnt from his review of the funding formulas will be applied to how business rates retention is baselined, so that county council areas with smaller economies are not disadvantaged by the retention of business rates when it is introduced in full?
Sajid Javid
Yes, I can give my hon. Friend that reassurance. I shall say more about how the system is going to work in a moment.
Our aim is to go further and for local authorities to retain 75% of business rates from 2020-21, as we work towards 100% retention. With that in mind, in December I announced an expansion of the 100% retention pilots that have proved so popular. More than 200 authorities came forward to bid for the new 100% business rates retention pilots that we are going to run in 2018-19. I was pleased to respond to that enthusiasm by doubling the number of initial pilots to 10, covering some 89 authorities. The 10 that we have selected, taken alongside the existing pilots, give a geographic spread to help us to see how well the system works across a broad range of areas and circumstances. The pilot areas will keep 100% of the growth in their business rates if they expand their local economies—that is double what they can keep now. There will also be opportunities for others to get involved, with a further bidding round for pilots in 2019-20, which will open in due course.
Alberto Costa
I thank my right hon. Friend for making that point. Would he encourage Leicestershire County Council and other well-run Conservative-led councils to make further bids for the pilots?
Sajid Javid
Yes, I would certainly encourage all those councils that are creative and innovative, and that want to support local businesses and to look at new ways of funding and delivering services, to bid when we open up opportunities for new pilots.
Naz Shah (Bradford West) (Lab)
Like businesses, councils need stability, particularly with Brexit happening. Will the Secretary of State inform the House why his Department has not bid for any of the Government’s pot of funding to prepare for Brexit, to help councils?
Sajid Javid
My Department is very much involved in the preparations for Brexit. We have attended several recent EU exit committee meetings and we are involved. The hon. Lady should wait and see what happens. In due course, she will learn more about my Department’s approach.
In expanding the pilots, we have responded to what councils have told us, and we are doing the same in other areas. For example, the housing infrastructure fund recognises the crucial role that councils play in helping to deliver the homes that our country desperately needs, by providing billions in additional finance to support new development. We all know that we cannot achieve the new housing we need without having in place the right infrastructure, including schools, healthcare facilities, transport links and other essential types of infrastructure. We have received a staggering 430 bids, worth almost £14 billion, to deliver 1.5 million homes. That demonstrates the incredible ambition out there to tackle the housing crisis—an ambition that we are keen to get fully behind; hence our move to more than double the housing infrastructure fund at the autumn Budget, in which we dedicated an additional £2.7 billion, bringing the total to £5 billion. I was delighted recently to announce the first funding allocation of £866 million for 133 projects that will help to unlock some 200,000 additional homes. The work under way with a total of 45 local areas to deliver major infrastructure projects worth £4.1 billion could potentially deliver an additional 400,000 homes.
In his remarks earlier, the shadow Secretary of State talked about house building having fallen to its lowest levels since the 1920s—I think that is what he said. He is right about it having fallen to its lowest level since the 1920s, but he is wrong about when it happened. It happened in the last year of the previous Labour Government, when the current shadow housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), was the actual housing Minister. Since then, it is up by more than 50%.
I recently announced almost £300 million of funding for housing deals in Greater Manchester, the west of England and Oxfordshire, and a housing deal for the West Midlands. The West Midlands deal backs the mayor’s ambitions to build some 215,000 homes by 2030-31. Isn’t Andy Street doing a fantastic job, Madam Deputy Speaker? You do not have to answer that. Those deals represent another important step towards meeting one of the defining challenges of our time, as do the measures we are taking on social care.
Ruth Cadbury
In the last year of the Labour Government, there were 40,000 social housing starts. How many were there in the outgoing financial year?
Sajid Javid
Since 2010—since the change in Government—more than 300,000 affordable homes have been built. The hon. Lady mentioned the previous Labour Government and social housing. Interestingly, she did not point out that under the previous Labour Government, who were in power for 13 years, the number of social housing units for rent fell by 421,000. If she was really interested in this, she would stand up again and apologise—
Sajid Javid
If the hon. Lady is going to apologise, I will take her intervention.
Ruth Cadbury
Does the right hon. Gentleman not recognise that the net loss of social rented housing was because of right to buy? I do not have a problem with the scheme in itself, but had the councils been able to replace the homes that had been sold under right to buy, there would have been no net loss of social rented housing in this country. Will he also answer the question that I just asked?
Madam Deputy Speaker (Dame Rosie Winterton)
Order. May I say again that interventions need to be very short? I am sure that the Secretary of State will want to bring his remarks to a close soon without too many more interventions. If Members want to speak in this debate, they must bear in mind that we need to move on.
Sajid Javid
I suggest kindly to the hon. Lady that she reflects on the fact that more council houses have been built in the past seven years than were built in the previous 13 years of a Labour Government.
Kevin Foster (Torbay) (Con)
The Secretary of State listed some of the initiatives to encourage house building, but he did not include the land release fund, which has helpfully just given £4 million to Paignton to help get three housing projects under way.
Sajid Javid
I apologise to my hon. Friend for not listing that particular fund; there are just so many places where we are taking action to make sure that this country deals with the housing crisis—the housing crisis that was left behind, as he knows, by the previous Labour Government.
Let me turn now to social care. I am under no illusions about the pressures that councils face in addressing this issue. It is one of the biggest social issues that we face in our country, which is why we have put billions of pounds of extra funding into the sector over the past 12 months. We have also announced a further £150 million for the adult social care support grant in 2018-19. That will be allocated according to relative needs, and will help councils build on the work that they do to support sustainable local care. It comes on top of an additional £2 billion that was announced in the spring Budget for adult social care over the next three years. With the freedom to raise more money more quickly for the use of the social care precept that I announced this time last year, we have given councils access to some £9.4 billion of dedicated funding for adult social care over the next three years. However, we know that there is still much more to do and that that funding alone will not fix this issue, as it is a long-term challenge that requires long-term systemic change. The publication of a Green Paper this summer on future challenges within adult social care will set us on a path to securing that change.
Emma Hardy
I thank the Secretary of State for giving way. I am sure that everyone welcomes the extra money for adult social care. Will his Department also look into giving extra money for children’s services?
Sajid Javid
Another important issue is, of course, children’s social care. Although some £250 million of funding has been dedicated to that sector since 2014 to help with innovation and to deliver better quality services, the recent local government financial settlement, which will lead to a real-terms increase over the next two years, will also help. None the less, I do recognise that there are longer-term challenges, and that is something that my right hon. Friend the Education Secretary is taking very seriously.
Undoubtedly, these have been very challenging times for local government, but we know what Labour’s response to that would be: it would be throwing more money at the challenge without a second thought. Never mind the working people who actually foot the bill for raising that extra money through more and more taxes. Instead, we ask councils to raise their game as we strive to rebuild the economy after the disaster that we inherited in 2010, and we back those councils not just with funding, but with greater freedom, flexibility and certainty so that they can harness their invaluable local knowledge and transform services. Many have done just this—driving efficiencies and innovating while continuing to provide a world-class service, and delivering lower taxes in real terms since 2010. Services have not just been protected; in many cases they are improving. Communities are being empowered through billions of pounds of local growth funding and devolution deals. These councils are doing an excellent job, and the people they serve deserve no less.
Madam Deputy Speaker (Dame Rosie Winterton)
Before I call the Scottish National party spokesperson, let me again say that there is huge pressure on time in this debate. Therefore, after the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) has spoken, I will impose a six-minute time limit to start with. I urge colleagues to bear that in mind.
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
May I start by echoing the sentiments of the Secretary of State and hon. Members on both sides of the House? Within the short space of time that I have served as Local Government Minister, I have seen countless examples of the lengths to which councils go to serve their communities. It is a privilege to represent them in the Government, and I commend the hard-working staff and councillors delivering the services on which our communities depend.
I am proud that this Government are listening to those councils, recognising the pressures they face and responding to their concerns. That is why local government is seeing a real-terms increase in financial resources over the next two years. That is why local government is benefiting from an extra £2 billion in social care funding, and that is why local government is keeping billions more of its own money through business rates retention.
Maria Eagle
The Minister has just asserted that local government will have a real-terms increase. Does he accept that, as the National Audit Office has said, a 49.1% real-terms reduction in that funding has occurred in the past seven or eight years since the Conservative party has been in power?
Rishi Sunak
As the National Audit Office pointed out, this Government were alert to the requirements of adult social care building as a pressure. This Government responded by delivering extra money for adult social care.
In general, what this Government are doing is working. In adult social care, we have seen delayed transfers of care fall by 34% in the past year. In housing, we are seeing record levels of new home building and infrastructure investment, and from Teesside to the west country, we are seeing areas seize the opportunity to shape their own future. My hon. Friend the Member for Sutton and Cheam (Paul Scully) was absolutely right when he said that other people may paint a gloomy, downbeat picture, but there are examples of councils delivering for their constituents across the country, and as he pointed out, Kingston is doing a fantastic job.
Indeed, according to the LGA, over 80% of people are satisfied with their local area as a place to live, and satisfaction with local council services has remained entirely stable. To ensure that that continues, it is right that we update and modernise our current funding formulas. In the short term, I want to reassure the hon. Member for Garston and Halewood (Maria Eagle) that the Government are not clawing back section 31 grants, as she suggested might be the case. My right hon. Friend the Secretary of State confirmed that last week.
My hon. Friends the Members for Christchurch (Sir Christopher Chope) and for North East Hampshire (Mr Jayawardena) rightly asked about negative RSG. The Government are aware of the strength of feeling on that issue. We are planning to look at fair and affordable options for addressing that problem and will consult on it shortly after the local elections.
My hon. Friends the Members for St Austell and Newquay (Steve Double) and for Lewes (Maria Caulfield) spoke passionately about the rural areas they represent. They highlighted the historical unfairness in funding that their councils have suffered and why they think that should be addressed. I can confirm to them that understanding the particular costs of delivering services in rural areas and analysing the relative resources they have will absolutely be considered as part of our fair funding review.
My hon. Friend the Member for Bexhill and Battle (Huw Merriman) spoke about the importance of getting population growth right. Areas such as his have seen increases in the number of those of a particular age, which puts costs on to certain service areas. He is right to highlight that the new funding formula should use up-to-date population information and that it should be dynamic and respond to what is happening on the ground.
We have heard about children’s services, and it is absolutely right that we focus attention on vulnerable young people who are denied the stability that many of us sitting in the Chamber have enjoyed. It is a privilege for me to be the Minister responsible for the troubled families programme. Delivered in partnership with local authorities, the programme will invest £1 billion to help the most vulnerable in our society. I spent a morning last week in Liverpool hearing at first hand from the families themselves about the difference that this programme is making to their lives. Conservatives like to measure success by the outcomes we achieve, not just the amount of other people’s money that we spend, and the results are hugely encouraging.
Alex Cunningham
Does the Minister recognise the very specific link between deprivation and the number of children taken into care by our local authorities, and what is he going to do about it?
Rishi Sunak
What the Government are already doing about exactly that is working with the Department for Education on the most thorough and extensive piece of work ever undertaken to understand precisely the drivers of the need for children’s services, which of course includes deprivation. The report will conclude later this year or early next year, and I am sure the hon. Gentleman is looking forward to reading the results.
Beyond that, the troubled families programme is driving innovation on the ground, changing the way that local authorities work and bringing previously disparate providers of care together to help those who need it most. Other people may like to talk of compassion, but we in the Government are delivering it.
We have heard a lot about spending, but curiously rather less from the Labour party about who is paying for it all. We in the Government know who ends up footing the bill—ordinary hard-working tax payers. Over the past few months, the Labour party’s plans have become abundantly clear. We have heard about a radical change to council tax, a new local income tax, the abolition of the referendum tax limit and, as if that was not enough, a garden tax. Under the previous Labour Government, council tax doubled, and we all know that history tends to repeat itself. I can tell the House that this Government will always be on the side of hard-working tax payers. My hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) was absolutely right to say that we should be getting them value for money and keeping their bills low.
Maria Caulfield
Will my hon. Friend confirm that, under the Labour party’s garden tax plan, 10 million families would have to find £4,000 a year more?
Rishi Sunak
My hon. Friend is absolutely right to highlight the thousands of pounds that will be loaded on to the bills of ordinary working families. [Interruption.] Labour Members do not like it, but it is true.
We now know that council tax is lower in real terms than when we came into office, service delivery is high and innovation is thriving. This Conservative Government are strengthening our communities, and Conservative councils are keeping their taxes low. To conclude, it could not be clearer what happens when people vote Conservative—local government costs them less and delivers them more.
Question put.