“Councillors on the Frontline”

Debate between Bob Blackman and Brandon Lewis

Thursday 5th September 2013 Westminster Hall

[Bob Blackman]

Is it not one of the dilemmas of the whole system of overview and scrutiny and cabinet that council officers frequently see it as an obstruction to their getting on with the day-to-day job? Therefore, the resources applied to assist members who sit on scrutiny or overview are very limited, and those resources are often the first subject of reductions in expenditure when the council considers its budget. Does that not pose a problem to the whole basis of challenging the executive and council officers who find such overview and scrutiny an unfortunate irritation to their normal work?

[Brandon Lewis]

My hon. Friend makes a very good point. He reminds me of my time as a councillor, when I would—Members touched on this issue earlier—sit in meetings with council officers. Occasionally, they would, I do not doubt, be blaming somebody unfairly, but they would certainly use the opportunity to say to members that if we did not take a certain action it would upset the Audit Commission, that it would not help us with our comprehensive area assessment—or something else that the normal public do not care about or understand, and nor should they, because it is usually wasting their money—and that the Government will pull part of our grant from somewhere else.

That is why taking away ring-fencing was so important. I appreciate that the hon. Member for Croydon North and other Opposition Members have commented on how important that was. It is also why it was important that we got rid of some of the burdens—not only such things as the standards committees, but the Audit Commission itself and the way it worked. The hon. Member for Warrington North commented that we have the Local Audit and Accountability Bill, which is the final nail in getting rid of the Audit Commission, coming to us very soon. She commented on the Secretary of State’s powers, and I hope to be able to convince her, through the process of the Bill, that it is the right thing to do. It is already part of the code anyway, but she should look carefully at some of the authorities out there that are wasting taxpayers’ money on wholly inappropriate literature. We will talk about that, no doubt, in the months ahead.

My hon. Friend the Member for Harrow East is right in talking about how council officers will use funding. I have spent part of today talking about this very issue. Opposition Members have made the point about council funding and how it has changed. The challenge I put to the local government sector is that it is difficult for the general public to give that real credibility, until we can see every council involved. There are great councils doing great, innovative work to make sure that they are being efficient, but there are still lots of councils out there that have not looked at everything they can do, in terms of front-line services, innovation and shared management, and cracking down on the £2 billion of uncollected council tax and the £2 billion worth of fraud and error. Councils have increased their reserves by another £3 billion in the last year alone to a record high of £19 billion. That money should be going to ensure that we have great front-line services and innovation.

Local Government Finance

Debate between Bob Blackman and Brandon Lewis

Wednesday 9th February 2011 Commons Chamber

[Bob Blackman]

Indeed; my hon. Friend makes a fair point. We have heard the starting point of the apology and a little about what Labour would have done, but we do not know the detail. If the result of the election had been somewhat different, we would probably be arguing about money around the margins as regards the expenditure reductions.

I ask Front Benchers to consider the area cost adjustment. That is quite a serious issue for London and areas of deprivation, where higher costs are incurred. It appears that the area cost adjustment has not been dealt with reasonably in this settlement, and that needs to be looked at again. There are parts of the country where higher costs apply, and that is particularly true in London.

Capitalisation is just putting off paying today until tomorrow and doing it on a deferred basis. It means having to borrow or spend money on capital that could otherwise be employed. It is a wasted opportunity and the wrong way of dealing with redundancies. If councils wish to make redundancies, they should recognise that they will make savings on their revenue budget and they should use that budget to pay for the costs of those redundancies, not defer them through the capital programmes.

I applaud this Government for introducing the pupil premium. However, it will be equally applied across the country, and there are higher costs in London. Surely it must be right that in high-cost areas we increase the premium per pupil to recognise that fact. I ask Front Benchers to consider that.

We need to look at the data that are used to formulate the grant settlements. Certainly in London, those data are hopelessly out of date and inaccurate and therefore money is transferred in an unfair way. That has been true for many years, and I hope that we can put it right.

I will talk about two local authorities that I know well. The first is the London borough of Harrow, which has at last received a reasonable settlement from central Government. It is the third best in London and the 23rd best in the country. The Labour council that came in after the election inherited a transformation programme that reduces costs and safeguards services. We await its budget decisions. It should be satisfied with the settlement, after years of poor settlements from a Labour Government. In London, 27 of the 32 boroughs were on the floor under the Labour Government, receiving below inflation increases year after year. London has had to put up with draconian settlements before, and it knows how to deal with them.

The second is the London borough of Brent, where the Labour council inherited a transformation programme that would have saved £100 million over four years. Instead, it has decided to close six libraries and all the day care centres, to slash the voluntary sector programme, and to decimate services for the weak and vulnerable. That is a political decision. I suspect that that is precisely what is going on all over the country. Certain people are making decisions to close libraries, day care centres and other centres that affect the weak and vulnerable in advance of the Localism Bill, which will give local communities the opportunity to take them over and run them.

[Brandon Lewis]

My hon. Friend is talking about London, but does he agree that what he describes is mirrored outside London? The hon. Member for Sheffield South East (Mr Betts) spoke about areas that are deprived and hard-hit. Great Yarmouth, which is one of the most deprived areas in the country and is the hardest hit by these cuts, has said that it can deal with this situation without it affecting front-line services. It is doing so through shared services, thereby proving that this work can be done by councils that are prepared to be positive and think outside the box.

[Bob Blackman]

My hon. Friend makes a good point. The reality is that the councils that planned ahead, knowing that reductions would take place, however draconian, are coping best. The councils that put their heads in the sand and said that it would never happen are being caught out. They are now being called to account. If councils have not planned ahead, they will suffer.