Local Government Finance

Debate between Bob Blackman and Andrew Gwynne

Wednesday 8th February 2012 Commons Chamber

[Bob Blackman]

I recognise what the hon. Gentleman says about council tax base. That is a fair point. I notice that over some 13 years the Labour Government declined to review the council tax base or the underlying valuations, and I notice that the Government have agreed to continue that process of not revaluing properties for council tax purposes.

We have the opportunity once again this year for a council tax freeze. That is welcomed by local authorities and hard-pressed taxpayers. The Government are committed to that and it should be delivered. I call on all local authorities to take the opportunity of the grant and to freeze the council tax across the country so that all hard-pressed taxpayers can gain the benefit. It is true that different authorities are doing different things across the country. I shall not go into detail; I leave that to others.

Before the last election, everyone knew that local government finance would be substantially reduced. It was in the Labour party manifesto and in the Conservative party manifesto. Everyone knew that it was coming. Every local authority, regardless of its political persuasion, should have planned for those reductions and should therefore have implemented them over the past two years. A series of measures could be undertaken, and I shall mention a few. The first is to cut executive pay. It is interesting that in the past few days the Labour party, in particular, has been talking about people receiving large amounts of public money. There is no doubt that chief executives and senior executives of local authorities have been the beneficiaries of huge increases in pay over the past few years. At a time when local authority funding is decreasing, it is right that senior executive pay in local authorities reduces.

I am not a great fan of my local council, Harrow council, but I take my hat off to it for the measures that it is introducing. Its chief executive is cutting his own pay. He is cutting the number of senior executives and their pay, and he has introduced a system of pay within the local authority which means that the workers on the ground will be paid the same hourly rate regardless of when they work, but they will work a normal working week.

[Andrew Gwynne]

The hon. Gentleman said that local authorities should have expected and planned for reductions. I have some sympathy with that argument because it was clear, as he said, that were there to be a Conservative Government in particular, there would be some substantial reductions to local authority funding. Does he recognise, however, that the real problem for authorities such as mine started in 2010 with the in-year cuts, which took a massive amount of spending out of their budgets that they had already planned for and already started to spend?

[Bob Blackman]

I thank the hon. Gentleman for raising that.

I shall come on to some of the issues that every local authority in the country should be examining. Are they using their procurement capability properly? Have they joined with other local authorities to procure services, such as adult social care, using their buying power instead of competing one on one for the private sector services that are available? Have they shared their services across the various councils that operate within their area? Very few local authorities have done that.

Have local authorities fundamentally restructured the services that they deliver, to eliminate multiple handling? The vast majority of councils handle a multitude of grant applications and applications for different services, yet that information is input for every single service, so we have a multiplicity of inputs coming from the most needy families. That means that we employ in local government far too many people to repeat the handling of those cases. Those services should be simplified so that the vulnerable in society supply their data only once and then benefit from whatever services the local authority provides. Has the local authority properly considered outsourcing its services? There are direct suppliers that can deliver those services, often at a fraction of the cost of the public sector.