Ministry of Housing, Communities and Local Government

Debate between Gareth Thomas and Layla Moran

1st reading: House of Commons
Tuesday 2nd July 2019 Commons Chamber

[Layla Moran]

I thank the hon. Gentleman for his contribution. In fact, spending on services has decreased by 19.2% in real terms, which is not sustainable.

In my local area, Vale of White Horse District Council is a good example. We won the council from the Conservatives in the last round of local elections, and now we have sight of the finances. I am sure this is not unique in the country, but there is not enough money to fund the basic statutory services that the council is expected to deliver. The council is therefore eating into its reserves at an alarming rate. Coupled with that, an outsourcing agreement that was meant to save the council £50 million, and in fact has saved nothing, is projected to cost the taxpayer money. We are in a dire situation in the Vale.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

The situation in the hon. Lady’s area is mirrored in Harrow, where the council has lost over 97% of its revenue support grant since 2010 and is really struggling. Is it not therefore particularly sad that neither of the two Conservative candidates for the premiership are talking about these issues at their hustings?

[Layla Moran]

I hope today’s debate will be a clarion call to them and others about the importance of local government in delivering key services.

The resilience of local councils across the country is a focus of the National Audit Office’s work, and it has real cause for concern. The message I have received from my friends at today’s LGA conference is twofold. First, we must remember that councils are multi-million pound companies, yet they do not know where their funding is coming from past next year. How on earth are they expected to plan without any sense of the medium term, let alone the long term?

Secondly, if we are to shift the burden from central Government to local government, income generation needs to be made easier. Across the country, I am not aware of a single council that has successfully used the referendum mechanism to raise council tax. This is not working. We need another way to make sure councils are properly funded.

--- Later in debate ---

[Layla Moran]

I absolutely agree with that. Those calls were led by my right hon. Friend the Member for North Norfolk (Norman Lamb), who has been working on this issue on a cross-party basis. We have to do this together or we are not going to do it at all.

I now come to children’s services, an issue that, as a former teacher, is very close to my heart. Councils are overspending on these services, too—they did so by £872 million in 2017-18. The Public Accounts Committee has reported that 91% of authorities overspent. We are talking about young vulnerable children here. Something odd is happening, because although the number of children in the population has gone up, increasing by 7% since 2010, the number of child protection assessments has increased by 77%, on average, across the country. Worryingly, however, the figures are really different depending on the area of the country, suggesting that best practice is not being spread. For example, Camden Council has decreased the number of children that it has in looked-after care but other parts of the country have increased this by more than 90%. What are the Government doing to ensure that what some councils are clearly doing right is being spread? Meanwhile 42% of all local councils are rated as good or outstanding by Ofsted—but that means 58% are not. That is atrocious. We need to make sure that councils are held to account. My understanding is that Ofsted is so overstretched that it has for the moment suspended the rating of local councils. Will the Minister clarify whether that is true?

The final thing I wish to talk about is prevention. I serve on the Public Accounts Committee, and my colleagues and I are interested in value for money for the taxpayer. I am deeply concerned that the changes to children’s centres and youth services are not delivering value for money. In fact, worse than that, they are failing the young people of our country. The decrease in the number of Sure Start centres in Oxfordshire has meant that we cannot reach the same number of families as we did previously.

Meanwhile, the head of Ofsted said in her annual report:

“The evidence suggests that these cuts to youth and other services are a false economy, simply leading to greater pressures elsewhere.”

The Minister will know that in 2015 the Government axed the Audit Commission. Who is looking after the money? When something is cut in one Department, what effect is it going to have elsewhere? I am told that the responsibility is now in the purview of the Ministry of Housing, Communities and Local Government, but it is not transparent. In the reports that the Public Accounts Committee has seen, it was not obvious that everyone knows what is going on. That is a key ask of the Minister: who is looking after the money? From what we have seen, not enough people are.

The lack of someone looking after the money has an effect on things such as the schools system. Schools have now become a repository for every other issue that has happened in local government, and we see the same with our police. I am sure many Members know of similar issues to those that I see in respect of special educational needs and disability funding: there just is not enough money adequately to support the children who need education, health and care plans. Why, when schools are already under funding pressure, are they being asked to provide the first £6,000 towards any plan? Surely it would make more sense that if a child has a need, that need is fulfilled.

Similarly, when are we going to see the Government address inequalities in the system, such as those relating to young carers? They are required in statutory legislation to undergo an assessment of what they need, but there is no legislation that follows through on that and says that they have to be provided with the things they have been assessed as needing. Who is dealing with those kinds of inequalities?

[Gareth Thomas]

One pressure that the hon. Lady has not mentioned is homelessness. Although we on the Opposition Benches will not be surprised by the Government’s lack of additional revenue to tackle homelessness, does she not think it particularly odd that the Conservative party, which claims to be the party of the armed forces, is doing nothing about the scale of rough sleeping among veterans?

[Layla Moran]

As I said at the beginning of the debate, we have seen a rise in homelessness. It has been a particular focus of mine on the Public Accounts Committee, and the hon. Gentleman might be aware of my campaign to scrap the Vagrancy Act 1824. We need to make sure that the fact that we are a compassionate nation is reflected in all parts of policy. I could not agree with his point more. As he rightly pointed out, there are many things that I have not touched on, but I am sure other Members will. This has just been a quick canter around the finances in the estimates.

I hope that the Public Accounts Committee’s reports on local government spending and sustainability are bedside reading for all Ministers, because they make recommendations that I sincerely hope Ministers will take seriously. When the Minister responds to the debate, please can we have answers on the following? First, where is the spending review? How on earth can we expect councils to plan for the medium and long term when they do not even know where next year’s money is going to come from? Secondly, where is the fairer funding review? The Government have moved the burden of taxation from central Government to local government, but the underlying inequity in the system still exists. Thirdly, linked to that, where is the business rates review? As was alluded to earlier, local economies are suffering because of a lack of joined-up thinking. Finally, a refrain that I hope and am sure others will continue: where is the social care Green Paper?

We need all four together before we can achieve genuine value for money in what local councils deliver. Anything else is a false economy. All of us see the knock-on effects of these Whitehall spending decisions in our postbags. We also see the desperation of people who come to us because they feel that their local councils have failed them. However, half the time, it is not local councils that have failed them; it is central Government. Local government is vital. It is the coalface—it is where real policy meets real people. I hope that today’s debate will be a clarion call. Local government may not always be sexy, but it is certainly significant. I thank all colleagues for being here and the Backbench Business Committee for enabling us to have today’s debate.