Local Government Finance (England)

Debate between Diana Johnson and Andrew Percy

Wednesday 13th February 2013 Commons Chamber

[Diana Johnson]

I am grateful to my hon. Friend for providing that figure. As I said, that compares with the cumulative figure over four years of £228.36 for Hull residents, and that is just not fair. The case that I am putting to the Government is that they need to think again if they want to rebalance the economies of the north and the south. This is just another hammer blow to economic regeneration in the north, and to cities standing up and paying their own way. It will not help my city of Hull, which is struggling at the moment. Just before Christmas we saw 1,200 job losses in the local area from the private sector.

I pay tribute to the work of Hull city councillors who are trying to work with the budget they have been given by the Government. They have been put in a very difficult position. My hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Communities and Local Government Committee, set out clearly the important work that local councils do on environmental health and trading standards, and in looking after some of the most vulnerable and damaged young people in our society—looked-after children, and elderly and disabled people who need social care. The councillors in Hull are doing their best to make sure that they can cover as much of those services as possible, but the Government are making it completely impossible to provide the kind of services we need in an area with such disadvantage.

[Andrew Percy]

rose—

[Diana Johnson]

I will give way to the hon. Gentleman. As a former Conservative councillor in the city —just one of two—he often spoke up for his constituents, but I am surprised that he now feels that the cuts being imposed on his former constituents are fair.

[Andrew Percy]

What I clearly remember from my time as a Hull councillor is that, at the end of the last Labour Government, we had fewer jobs in the city than we had at the beginning. I also remember Labour frittering away the KC money. Public health funding in Goole will be £27 per ahead, but in Hull that figure is four times greater. Is the hon. Lady defending the fact that people in Hull, which has a similar demographic profile to Goole, have four times as much spent on their public health as somebody in my constituency?

[Diana Johnson]

I am sure that the hon. Gentleman would not argue that people in Hull should lose the money they need to deal with health inequalities and that that money be given to the people of Goole. Surely, he should fight his corner for the people of Goole and ensure that the Government provide the necessary funding.

I am reminded of the 1920s and the dispute involving Poplar borough council. We had a Liberal-Tory coalition then, and the good councillors of Poplar had to fight their corner then, because of the nature of the cuts being imposed on poorer areas of the country. It was generally accepted after a High Court ruling that richer areas should subsidise poorer areas, but of course the Government are rowing back completely on that and reverting to the idea that everywhere has to cope on their own, as a result of which the wealthy areas do well and the poorer areas sink without trace.

The new homes bonus will not help areas such as Hull. It is the wealthier areas that benefit from new homes being built. The Liberal Democrats like to talk about the pupil premium, but in 2011-12, Hull city council had £6,516 per pupil to spend on education and support services, whereas Kensington and Chelsea could afford to spend £8,920 per pupil. My constituents know jolly well what the Government are doing to the funding available to them and other northern cities.

This is a time for people in Hull to come together, and that includes the Liberal Democrats. There was a brief flirtation with the Liberal Democrats in Hull, but I think that most people there now recognise what they really are—Tories. People in Hull now recognise that this is not a fair settlement from the Government. We need to stand united in Hull, just as people in Newcastle and other parts of the country are standing united, and say, “Enough is enough.” The bedroom tax, council tax benefit—they cannot keep doing this to cities that are already struggling. I call upon the Minister to address the inequality in the cut given to Hull in particular and to explain it to my constituents, because they do not understand why they are being so penalised. They are doing their very best, living on limited incomes, working as hard as possible and looking for extra work when possible, yet the Government, time after time, seem hellbent on making the poorest pay the most. It is not fair.

Finance Bill

Debate between Diana Johnson and Andrew Percy

Tuesday 3rd July 2012 Commons Chamber

[Andrew Percy]

No, I am not going to give way, because other people want to speak.

The shadow Minister talked a lot about VAT consultation and the Government’s failure, she said, to consult on the changes. I just wonder whether she has consulted very widely on her proposal to reduce the rate temporarily to 17.5%, because I suspect not.

[Diana Johnson]

It is a real pleasure to follow the hon. Member for Brigg and Goole (Andrew Percy), who, with characteristic humility, accepted that bringing forward these VAT proposals was not the Government’s finest hour, unlike the hon. Member for Truro and Falmouth (Sarah Newton), who unfortunately is no longer in her place. She has a rose-tinted view of the shambles of this Budget and the proposals that have been put forward, which caused consternation, upset and distress to many individuals and businesses around the country. However, she now seems to think that we should be celebrating the fact that the Government have had to cobble together this compromise.

I shall be supporting new clause 10, which was tabled by those on our Front Bench, and I want to speak against the Government’s new schedule 1. Our opposition to new schedule 1 underlines Labour’s commitment to having low taxes, because it would implement a tax increase, including the 5% VAT on caravans, which I want to address.

BBC Local Radio

Debate between Diana Johnson and Andrew Percy

Wednesday 26th October 2011 Westminster Hall

[Diana Johnson (Kingston upon Hull North) (Lab)]

I want specifically to address the role of local radio in dealing with civil emergencies. As a Member who represents Hull, which suffered greatly in the 2007 floods, I know that the information given out by the local radio station, Radio Humberside, was important for local people. It was important for local people to know what was happening and what the police and fire service were advising, and to get information on the state of the roads in the city and on school closures. Radio Humberside actually became the fourth emergency service for its listeners.

[Andrew Percy (Brigg and Goole) (Con)]

When we had flooding in Goole this summer—the hon. Lady is a near neighbour and I am sure she was listening—within seconds of my tweeting on the heavy rain that caused the flooding of hundreds of properties, Radio Humberside was on the telephone wanting to know what was happening. Radio Humberside gave out that advice immediately.

[Diana Johnson]

The hon. Gentleman makes a very important point. Our part of the world has problems with flooding, and Radio Humberside is excellent at picking up on it and is on the scene straight away to get out information. Radio Humberside is excellent, and I pay tribute to its work on that particular issue, as well as all of its other work.

In December 2007, Radio Humberside was recognised by the Prime Minister of the day as one of the flood heroes. Peter Levy came to London and was awarded a certificate for Radio Humberside’s work.

Flooding (Hull)

Debate between Diana Johnson and Andrew Percy

Tuesday 13th July 2010 Commons Chamber

[Diana R. Johnson]

The right hon. Gentleman is exactly right, and I believe there is support for that view throughout the House.

The surface water management plan in Hull, which will have an impact on the right hon. Gentleman’s constituency, will bring together the East Riding of Yorkshire, Hull city council, Yorkshire Water and the Environment Agency to put together a workable plan. A scoping exercise was undertaken, and the previous Government provided £250,000 to develop the plan further. This summer there will be consultation, including on an aqua green in my constituency in the Orchard Park and Greenwood area, adjacent to the Cottingham area, which the right hon. Gentleman represents. I understand that the aqua green, alongside the other provisions set out in the consultation, would cost about £20 million to implement across the city. I seek reassurance from the Minister tonight about the future of that funding.

[Andrew Percy (Brigg and Goole) (Con)]

I, too, congratulate the hon. Lady on securing the debate. I know that she has been a strong advocate for Hull during and since the flooding. While we are on the issue of surface water, I know that significant progress has been made, but the one point on which we do not seem to have made a great deal of progress is having a single number for residents to use to report all surface water flooding. That was a huge issue in Hull and the East Riding on the day of the floods, and we need more progress on it.

[Diana R. Johnson]

The hon. Gentleman is right, and I hope that the Minister will address that point.

I turn to the issue of small grants to households, which was an important issue in Kingston upon Hull North. The previous Labour Government gave £5 million as part of a grant scheme to enable local authorities to apply to help their residents to protect their homes through the use of flood boards and air brick covers. My local authority, Hull city council, did not apply for that money. There were several rounds of the grant, but there seemed to be confusion about whether the council could apply. I would like to hear from the Minister whether further grant money will be available and whether the conditions could be clearly laid out, so that, as I hope, my constituents can apply for that money through Hull city council.

It is appropriate to pay tribute to the work that Yorkshire Water has undertaken in my constituency by investing in the Bransholme pumping station, which failed in June 2007. It has put in additional pumping facilities, and extra capacity is currently being developed at the station’s lagoon. That is all to be welcomed, but further housing development is planned in the Bransholme area, so we need to keep an eye on whether we actually need a brand new pumping station in the years to come to meet the demand. Also, Yorkshire Water is looking to identify changes that might be necessary to the Humbercare sewerage system in Hull.

I turn to the issue of insurance, which has been an ongoing issue since 2007. The insurance industry has agreed to provide flood cover for most properties, but this is subject to the Government continuing to invest in flood risk management. I am aware of the statement of principles under which the insurance industry will provide insurance. That will run out in 2013. However, the Pitt report found that some people suffered from a hike in premiums and that excesses were much higher than before 2007. For example, Mr and Mrs Pearson lived in Kingswood and were insured with Norwich Union. In late December 2009, they were told that their premiums were to go up 33% and that their excess was to be £6,000. They were also told that if they personally commissioned an independent expert report specific to their property that took into account the flood defences put in place, the insurance company would look again at the insurance premium. They were told by the insurance company that HU7, where Kingswood is, was very likely to flood again, but it did not seem to know anything about the work being undertaken to protect the area. It was only once my office had intervened and provided information from Yorkshire Water that we could get the premium down.

I am concerned that insurance companies do not seem to be aware of what is happening in areas such as Kingston upon Hull North, and are not distinguishing between the risk from surface water flooding and river flooding. At the moment, insurance companies only have to provide insurance for householders who had insurance in 2007, so in Hull the insurance market is essentially closed. Personally, in my home, I have come across this: I cannot shop around in the insurance market, but can only go to the provider I had in 2007. It was found that many people affected by the floods did not have insurance. It is disappointing that although some local authorities have adopted a cheap insurance scheme for council tenants, this has not been taken up by my local authority. I am concerned, therefore, about the future for residents in my constituency and their ability to find affordable insurance in the future.

That leads me on to the point about the continuation of funding for flood protection. It is estimated that by 2035 we will need about £1 billion a year to protect ourselves from flooding. Liberal Democrat Hull city council has constantly asked for more money for Hull, particularly from the previous Government, to invest in flood defences in the city. I was dismayed today, therefore, to read in the media reports that it is likely that the Department for Environment, Food and Rural Affairs will have its budget cut by 30% in the comprehensive spending review. I also understand that plans are being prepared by the coalition Government to privatise flood defence infrastructure, which means that the private sector will have to make up for the coalition Government’s cuts to the Labour Government’s plans for flood defences. Those private sector bodies would then be allowed to pass on the costs of flood protection to the people and businesses in the areas at risk of flooding, in the form of extra council tax, water rates and, perhaps, contributions from business.

Even most market economists would accept that there can be no greater example of a public good than flood defences. We surely cannot hand that responsibility over to the private sector to make a profit at the expense of communities at risk of flooding. Of course we want to encourage private investment and partnership to add to our flood protection work. However, handing flood defence to the private sector is not the way forward to protect us from flooding, and would be another burden on people and businesses in my constituency, which has some of the most deprived areas in the country. They have suffered from the recent recession and, I believe, will now suffer from the policies pursued by the coalition Government.

It appears that the Lib Dem-Conservative coalition is now preparing a flood tax on the victims of flooding in some of the most deprived parts of the country, which, in Yorkshire and the Humber, include Hull, Sheffield and Doncaster. I know that the Minister is a fair-minded gentleman. I hope that he can reassure me this evening that the money put forward by the Labour Government for flood defences will be protected and that DEFRA will stand up to the Treasury by delivering on the commitment made by the previous Government that people would not suffer by having a flood tax imposed on them—a commitment made not only to the people of Hull, but to the people of the rest of east Yorkshire and the other parts of the country that suffered in the flooding of 2007. I hope that he will also be able to answer some of the other questions that I have posed this evening.

Capital Gains Tax (Rates)

Debate between Diana Johnson and Andrew Percy

Wednesday 23rd June 2010 Commons Chamber

[Diana R. Johnson]

I am sure that that is absolutely right. I must give credit to our civil service. Civil servants advise Ministers and respect the decisions that they make, but the civil service would have been clear if it thought that the assistance should not go ahead because public money would not be protected as fully as it should be.

I was surprised by the vague way in which the Business Secretary talked about the opportunities that his Department will make available in the regions. He cited just two examples: an incentive on national insurance contributions for small businesses and a proposed fund to be distributed in the regions. There were no details of the fund, however, and it is unsatisfactory that businesses and enterprises in Yorkshire and the Humber have to wait to find out what money might be available to them. That is not good government.

I am sorry that the Business Secretary is not in his place, but perhaps I will get some answers to my questions. First, in view of the cuts to Yorkshire Forward, the regional development agency, and the demise of Hull Forward, and given that the Liberal Democrat-controlled council in Hull does not have a great record on regeneration and moving quickly and effectively, how will we be able to promote investment in my city, which still needs public investment to go in, year on year?

Secondly, what will happen to opportunities for those not in education, employment or training with the end of the future jobs fund and cuts to university places? I have the great pleasure of the university of Hull being slap-bang in the middle of my constituency. I am worried about local youngsters in particular not being able to access their local university.

How will the region’s construction sector fare, with council house building schemes being cancelled, road schemes threatened and questions still to be answered about flood defence and protection work? Despite the promised good news on port ratings, will the Humber actually get the investment that the Labour Government had identified for the Hull port area and the use of the site for wind turbine manufacturing? That is under review by the coalition, which is worrying, because it might well put off businesses coming to Hull. With the Typhoon fighter project’s future uncertain, what will happen to the skilled jobs at BAE Systems at Brough?

I see other hon. Members from the Yorkshire and the Humber region in the Chamber. What about the reduction or elimination of the Humber bridge tolls, which we were so close to achieving under the previous Government? Those are all questions that will affect the economic viability of Yorkshire and the Humber, and I want some answers.

[Andrew Percy (Brigg and Goole) (Con)]

I was previously a councillor in the hon. Lady’s constituency, so I consider her a friend. I was interested to hear that we were close to eliminating the bridge tolls. Exactly where had the money for that been identified? Will she confirm that the study started by the previous Government is continuing? To give the impression that nothing is happening on the Humber bridge tolls is not fair. I would very much like an answer to my first question, because some of us think that the previous Government started to talk about the Humber bridge simply because an election was coming.

[Diana R. Johnson]

The hon. Gentleman does a disservice to the fact that long before the general election, there was cross-party working by hon. Members on both sides of the House to make the economic case for reducing the Humber bridge tolls. He will know that the then Transport Minister, my right hon. Friend the Member for Tooting (Sadiq Khan), had decided not to allow the increase in the tolls and a review was being conducted of whether the toll could be reduced to £1. All I was doing was questioning what was going to happen, and I would be grateful if the coalition partners threw some light on the subject. I am sure that all hon. Members are keen to get a satisfactory resolution to that ongoing problem.

I have a few comments to make about what Labour would have done, had we secured a majority at the election. It is clear—the shadow Chancellor made it clear—that of course we need to get the deficit down. Before the election we had legislated to say that we would halve the deficit within four years, and in the Departments work was being done to identify where reductions could be made. I was in the Department for Children, Schools and Families, so I know that areas had been clearly identified, and my right hon. Friend the Member for Kingston upon Hull West and Hessle (Alan Johnson) told me that clearly identified savings had been put together in the Home Office. It is wrong to say that the Labour Government had not started work; however, we made it clear that we had to wait until the growth in the economy was secure.

A key issue that the coalition Government have to grapple with is the fact that just making cuts across the board is not the sensible approach. We need to think about what policies we can introduce to spend and invest now so that we can ensure that we save in future. One of the policies very dear to my heart is healthy free school meals, which piloted in Hull but was slashed by the Lib Dem council without the evidence being evaluated. I believe that there is an economic case to be made. Investing in children early on, making sure that they eat healthily and well and do as well as they can in their education, will reap benefits for us as a society later on. I was disappointed to see that the extension of the free school meals pilot has been abandoned by the coalition Government, as well as the extension of eligibility to those in receipt of working families tax credit, which would have made more families eligible to get free school meals for their children. That is very short sighted.

By cutting too deep and too early, we will risk jobs—jobs in Hull, jobs in Yorkshire and the Humber, and jobs nationally. We will have higher welfare costs and less tax revenue. Growth will be suppressed and I think that the deficit will be much worse.