Somerset Council: Funding and Governance

Jim McMahon Excerpts

Tuesday 30th January 2024 Westminster Hall

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Pritchard, and to respond to the debate secured by the hon. Member for Yeovil (Mr Fysh). Despite the clear localised political differences that have played out, we have heard quite a lot of commonalities in terms of the structure of local government finance and the issues that are driving demand pressures. That is important: we need at least a shared analysis of the issue before we try to find common ground on the potential solution. I welcome the exchanges today and congratulate the hon. Member on securing the debate. We perhaps need to talk about issues like this more than we do.

I hope very much that the offer of a meeting with the local council leader is taken up, because this matters to all our constituents. That is why we bring such debates to the House, but in the end, the solution lies in local partnerships and in Members of Parliament working in partnership with their local authorities, regardless of political affiliation, for the best outcome for their constituents. That is the only way to work, in the end, so I hope that is taken up and that the council enters into the spirit of partnership in return.

Let me be clear: we are here to talk about funding and governance in Somerset Council, and we have heard many of the arguments, but this issue affects councils of all political colours. I have met many council leaders up and down the country. The one thing they have in common, and the one thing they continually raise, is that they often feel that they are standing alone in dealing with the pressures of rocketing demand while trying their hardest to prioritise services for their local communities. We have heard about some of those issues today: the number of children who need child protection; older people living longer but needing care in older age; the homelessness crisis and people staying in temporary accommodation—all those things have a significant impact on council budgets at a time when central Government funding has been reduced in real terms. Those were political choices made over 13 years of a Conservative Government. They have fundamentally changed the structure of council funding, and Somerset will feel that too.

We should not forget that in 2010 the coalition Government announced the closure of the Audit Commission. It is not just that money has been taken away; the infrastructure required to raise a red flag when there are concerns was taken away as well. What does that mean, 14 years later? The audit market is still dominated, by and large, by six firms, with very few new market entrants. The market size has not grown in comparison. As a result, there is real tension in the system. As one could predict, the closure of the Audit Commission and the limitations placed on the National Audit Office mean that there is a gap in local as well as national reporting. Councils are often left alone to inspect their own financial risk, rather than looking for value for money, or to use a broken audit market.

How does that manifest itself here today in 2024? There has been a sharp increase in the number of local authorities that have not had their accounts audited by the statutory deadline. In 2022-24, just five of the 467 councils delivered their audits on time. That means just 1% of English councils published their audited accounts by the deadline. When a council is in financial difficulty, the warning system which should escalate the matter is just not there. The Minister needs to consider how that might be improved.

We have talked a lot about the grant funding and, as such and in the interests of time, I will not go over old ground. However, it is a matter of fact that Somerset Council has £100 million less than it needs to provide services in its area, when compared with demand. Labour understands that councils like Somerset are funding the impossible balance between demand rocketing and budgets not keeping pace. When the austerity programme started, cuts were targeted at local government far more than at any other part of Government. We know that local government was always the prevention arm of Government. When we take away the prevention arm, all we have left is the reactive. We see that in the NHS and right across the board, but in the end it always comes right back to local government to pick up the pieces. That is what we have seen in social care, children’s services and homelessness. It is important that councils are given the tools to take the long-term decisions that are needed. Labour would commit to single pot, multi-year settlements to give the financial certainty that is needed, as well as funding that follows the need where it exists.

We often hear debates in this place about the difference between the north and the south, between our towns and our cities, and between counties and villages, but in the end, for a funding formula to be fair, surely it must follow need, wherever it is? It is not right that an older person in any part of England is denied the care they need, or a young person is placed at risk because they do not receive the care they need, or someone is not given the home they need. For a funding formula to be truly fair, it has to follow the need where it exists. That also requires a resetting of the partnership to be a partnership of equals. That is why Labour would introduce a take back control Act to reset the balance of power between central Government and local government.

Oral Answers to Questions

Jim McMahon Excerpts

Monday 22nd January 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

The reality is that more and more councils are being pushed to the financial brink. It stands as a fact that more councils issued bankruptcy notices last year than in the previous 30 years combined. Those councils were Conservative, Liberal Democrat and no overall control, but the one thing they have in common is the Conservative Government in Downing Street. The Local Government Association reports that councils face an immediate £2.6 billion funding gap. Now that the deadline has passed, can the Minister confirm how many councils have applied for exceptional financial support, and whether pressures in adult social care, children’s services and homelessness will be fully met in the financial settlement?

[Simon Hoare]

It is not policy for us to comment individually on councils that are seeking advice from or engagement with officials, but I am grateful to the hon. Gentleman for his question, because it gives me the opportunity to put on record that my Department and I stand ready to engage with all those councils who wish to discuss their financial circumstances. We want to make sure that we have a well-funded, professional local government sector, delivering for those people in our communities who look to them for the services that they require for their daily lives.

Draft York and North Yorkshire Combined Authority Order 2023

Jim McMahon Excerpts

Tuesday 12th December 2023 General Committees

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Hosie. I am delighted to take up the role of shadow Minister for English Devolution and Local Government, and to discuss devolution in England once again.

If we want to achieve change in our country, we must all be steadfast champions of local and devolved government, where decisions can be taken by communities with a real interest in and insight into place and the people who live there. There is no road to recovering our fragile economy or fractured public services, or delivering on the demands for power to be distributed, which does not travel through our local councils, combined authorities and mayors.

Parliament is privileged to have many former councillors serving in it. I know from serving as a councillor for 13 years, including as a council leader, the difference that local government can make when public services are aligned with public good. However, we also know that those foundation are weakened after 13 years of austerity. Nine councils have issued section 114 notices, and there is a strong chance that more will follow, unless the Govt take urgent action. There is still no plan from the Government to deal with the chronic state of adult social care, rocketing demand for children’s services, and the broken housing market that fuels the homelessness crisis, the like of which we have not seen in modern times.

There can be no hiding from the fact that the mini-Budget just over a year ago, which sent so many households to the brink, is also hitting councils hard. Rocketing inflation means that the cost of servicing borrowing is much higher. The cost of energy and wider inflation mean that budgets set in good faith simply do not hold against that tide.

English devolution is, at best, a fragmented patchwork, which still excludes large parts of the country. Before entering Parliament, I had the honour of serving on the Greater Manchester Combined Authority as we were building the first devolution deal outside London, which created, I believe, the most expansive devolution package in England. It created the conditions for Greater Manchester to take control of its bus network, unleashing fairer fares and delivering for the needs of local communities and the economy. There was also a rapid package to reform health and social care in the area.

However, that was 10 years ago. Progress on rolling out further powers across England has been painfully slow. We have seen great things in the Yorkshire region, with Mayor Tracy Brabin in West Yorkshire and Mayor Oliver Coppard in South Yorkshire. They are showing the difference devolution can make when Westminster learns to let go.

That is happening across the country under Labour metro Mayors and council leaders. Areas such as York and North Yorkshire, which we are discussing today, are rightly being pragmatic in accepting that the order is an important step forward, and we hope that the Hull and East Riding devolution agreement makes further progress too. However, the truth is that the devolution settlement is fragmented, piecemeal and does not go far or fast enough. The powers and resources do not touch the sides of what is needed and do not provide enough resilience in the age of austerity.

Too many devolution deals lack ambition from the Government. In too many places, including large parts of rural England, there is no devolution to speak of. It is important to address that. Consequently, communities cannot assert control over the places where they live and invest. That means that local people, economies and the services they rely on are held back and starved of the investment they need to get on.

As the begging bowl culture and “hunger games” approach continue, we cannot level up from the top down, which is why Labour will set a presumption towards handing power back to our towns, cities and communities. Labour will push power out of Westminster with a “take back control” Act that gives communities a direct say in their future. We will start by giving all our metro Mayors the powers and flexibility to turbocharge growth in their areas, for example, over planning and housing, transport, net zero and adult education.

We will offer all places the right to negotiate with the Government for powers that have been devolved elsewhere. Local leaders will take on powers whereby they can demonstrate capacity and sound financial management. Giving all towns and cities the tools they need to create good jobs and attract investment, including longer-term funding settlements for local government, is important for our collective future.

We do not intend to divide the Committee on the order. We hope that more progress and ambition across England can be shown when it is made.

Oral Answers to Questions

Jim McMahon Excerpts

Monday 4th December 2023 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Minister.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

In 2018, Tory-led Northamptonshire County Council issued a section 114 notice—as close as a council can come to declaring itself bankrupt. Since then, under this Conservative Government, we have seen a further eight councils from across the political spectrum do exactly the same. In September, the credit agency Moody’s warned that more local authorities will

“fail over the near term”

due to high inflation, interest rates and service demand. By the Government’s own assessment, how many more councils are at risk between now and budgets being set next year?

[Simon Hoare]

I welcome the hon. Gentleman to his place and echo the remarks of my right hon. Friend the Secretary of State; it is great to see him back on the Front Bench.

The hon. Gentleman raises an important point. Nobody is going to doubt that section 114 is a serious issue. As I have said to the Local Government Association and others, I do not think it is right for us to name and shame, point the finger or assign blame. We are intent on working with councils that have already alerted us to see what we can do to help, and on working alongside councils that have concerns to ensure they do not fall into that situation. I am not going to give a running commentary on that, save to make this pledge: we will work with those councils to ensure that they can continue to deliver for their voters.

Rural Councils: Funding

Jim McMahon Excerpts

Wednesday 29th November 2023 Westminster Hall

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Thank you, Mrs Latham. I apologise to the hon. Member for West Dorset (Chris Loder) for being slightly late; I was trying to get the printer to spring into action this morning. I congratulate him on securing an important debate on local government funding, and I am delighted to respond to it.

We all know that our councils are at the frontline of public service delivery, improving the lives of millions of people and the places they live, work and holiday throughout the year. They are also often the last line of defence when people fall through the net of other parts of the public sector. We also know that local councils have borne a disproportionate burden of cuts throughout what has been a lost decade of austerity that has seen £15 billion taken from English local government since 2010. Rightly, therefore, communities are anxious for the funding they desperately need. More fundamentally, change is needed in the relationship.

It is worth responding to the debate’s many thoughtful contributions. The hon. Member for West Dorset rightly pointed to the now very fragile nature of local councils. Many are looking at the next year or two and wondering whether they will be able to make ends meet or face insolvency. We have seen some councils already in that position.

There has been a lot of talk about the rural service delivery grant, which has an important role to play, but we need to rewind to the inception of that grant. It was born from the area based grant that was primarily targeted at urban deprived communities to deal with social and economic need. That grant was deleted with a week’s notice by the then coalition Government and was followed by the rural service delivery grant. We saw no new money to deal with the growing need in our society and our economy; there was just a transfer of money from one part of the country to another and from one type of council to another, without there being a proper, balanced assessment of the funding need across the whole of England.

There were many calls for that assessment, and the Minister and I, when we were on the Local Government Association executive together, made the call for an evidence-based approach to how councils are funded. It is not right that we pitch one area against another when, fundamentally, if an old person needs adult social care in any part of England, they ought to get it. If a young person is at risk of abuse, they ought to be protected in every part of England. The same is true of every public service.

The Government’s response in 2014 was to commission a review into the unit costs of service delivery. It was intended to take into account the disproportionate cost in very sparsely populated areas, where it naturally costs more to deliver some types of services. That should have been the evidence base. What we have seen is a gerrymandering of the system throughout the years, whereby the money is always directed for political endeavours. We have seen it with the high streets fund, the levelling-up fund and the rest of it, where the evidence base does not hold up to scrutiny.

Beneath all that, councils are not getting the funding they need to provide even the basic services for the local population.

[Alicia Kearns]

As a former civil servant, I take issue with the idea that, somehow, civil servants have agreed to a political formula. That is not how it works. Is he really suggesting that Rutland and Melton is a key red wall seat? We received £23 million of levelling-up funding, but I do not remember being at the top of the list of people who needed to be re-elected by being given some kind of handout from the Government. Funding was given on the basis of the best possible applications.

[Jim McMahon]

The debate is not about the levelling-up fund as much as about the debate around it. It is not for me to highlight which seats are or are not in scope of the target priorities of the Conservative party, but I do say that we need to move on from a system in which we shift around the country a diminishing resource that does not meet the need and when, one year, one council benefits but the next year, it may be disadvantaged. There has to be a funding formula that shows that every community gets the funding it needs and that takes into account the cost of need, the cost of demand and the cost of delivering those services.

We have heard a range of other contributions that I will not go into because of time, after taking that intervention. However, we must all acknowledge that the system we have is unsustainable. Several Members have said that there is no more money than there is in the envelope, and we have to accept that. The public finances are not in a good position. There is no wand that will magic up new money, but just looking at the local government purse without looking at the whole of the public sector would be an error.

We know that councils are best placed to deliver a wide range of services and that they are absolutely best placed for early intervention. We should not just look at local government; we should ask what we can do for worklessness, transport, and health and social care services, where earlier intervention by a local authority overall would cost the taxpayer far less and deliver a better outcome for local communities too.

There is no doubt that residents in local rural communities acutely feel the cuts that are being borne. That casts a unique shadow on our rural communities. We know, too, that there is hardship in those centres in relation to connectivity, schools and transport. It is not the fault of those councils, which are desperately trying to make it all work; in the end, it is about the overall funding settlement not being fit for purpose. We recognise that different councils have bespoke challenges that we need to address, and we have heard about some of those today: rural housing, social care and the cost of delivering services in very remote areas, whether those are schools, bin collections or public transport and their operations.

What does it mean in practice, if we do not get that right? It means, in the end, that the places that people care about and have invested in are ultimately disadvantaged. It means that town centres and village centres are no longer financially viable, and then we see shops being boarded up because the population cannot afford to stay there. Generations have to move further away, because they cannot afford to stay in their local areas.

The fact is that we have seen a lot of change in Government; we have seen a lot of change in ministerial positions and in the Secretary of State, but councils have just carried on going, waiting for a long-term funding settlement that never seems to arrive. The Rural Services Network found that the local government funding settlement for 2023-24 meant that urban councils were receiving 38% more per head from the Government funding formula than rural councils, which equates to about £135 per person. It is not difficult to see how that is arrived at, and the Government have said that they would fix what they have said was a “broken system”. At the Local Government Association conference in July, the Secretary of State for Levelling Up, Housing and Communities said that the system was “out-of-date” and needed “to be fairer”. We agreed with that, and we also accept that we cannot carry on.

We cannot continue to set one area against another. We see absolute deprivation in our rural communities, although it is sometimes quite hidden. If we look behind the net curtains in pretty, picturesque villages, we see people living in absolute desperation, struggling to make ends meet. We only have to walk across the road from Parliament, in one of the richest capitals in the world, to see people living in absolute poverty and desperation, too. Surely a fair funding formula would follow that need wherever it exists and be agile enough to make sure that it roots that need out. That speaks to a wider issue about the power balance. Far too much of the relationship is one of dependency of local government on central Government, and the funding regime massively contributes to that. The idea that councils are pitched against each other in a format like “The Hunger Games” is not a healthy relationship; it is not one of an empowered local government and it is certainly not very efficient, so we need to change it.

We know that the underfunding of our rural councils stunts growth, and Labour is prepared to sow the seeds of transferring power, so that our rural councils can determine their own fate. What should that look like? It is about local communities deciding for themselves what is right for their area; it is not about Ministers and civil servants in Whitehall, who are often miles away from the real impact. More than that, that new-found partnership with rural communities comes from a mission-led Government; a Government with a purpose, and a determination to see that purpose through.

We want our rural communities to have higher growth, to end the cost of living crisis, to have an NHS that is fit for the future, to have community energy where people have a stake in the future and where we all have energy security, and, of course, to have safer streets, with a commitment to have a further 13,000 police officers, many of whom will be deployed in our rural and coastal communities to tackle crime hotspots, where they exist. We also want our rural communities to have more opportunities for young people in schools in our rural communities, and we have heard much about that today and about how, in many ways, that actually goes beyond local government to the classroom, the local GP and to whether there is a bus service in place at all. That is a partnership that councils will have under a Labour Government.

We have heard a lot about Labour’s plans, our mission-led Government and what we want to do. We do not hear as much about a comprehensive plan from the Government, which I hope we hear in the Minister’s response today. It is a matter of fact that after nearly 14 years of austerity, the system is creaking to the point of being broken.

[Chris Loder]

I thank the hon. Member for his apology for being late; it is accepted. Does he agree that we should not be fooled that Labour cares about rural Britain? Where are they? The Labour Benches are empty. Not one single Labour MP was in this room when I started my debate. I say respectfully to the hon. Gentleman that I have sat here and listened to a lot of what he has had to say, and I am afraid the realities are that the current mechanisms benefit Labour areas far better than they do Conservative, or indeed Liberal Democrat, rural areas. I say respectfully to him that I think some of the points he is making are not well-founded.

[Jim McMahon]

If I can say so respectfully, that was a slightly cheeky intervention. The hon. Gentleman may well find that the Opposition Benches are populated by far more Labour rural MPs after the election. I also draw his attention to the Co-operative party rural commission report, in which I suspect there is a lot of common ground. Outside of the politics, the back-and-forth, and the rest of it, I find that we agree more than we disagree on the fundamental issues affecting rural and coastal communities at these times.

Greater Manchester Spatial Framework and the Green Belt

Jim McMahon Excerpts

Wednesday 18th March 2020 Westminster Hall

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Ms Nokes. I congratulate the hon. Member for Bury North (James Daly) on securing the debate. It might seem like a very localised matter, but it will affect 2.5 million people in Greater Manchester, and it is a huge issue for the Members of Parliament who represent them. It has been all-consuming for a few years now. I should probably declare my constituency position on this, which is that I do not support the spatial framework in its current form. The weight of responsibility for housing development is not evenly spread, either across Greater Manchester or within boroughs, and the process has led to mistrust. When I say that, I am just being honest about the weight of feedback that I get from local people.

The principle of a spatial framework is critical, and it was hard-wired into the Greater Manchester devolution deal: it was about Greater Manchester deciding for itself how it wanted to see its future. As to the idea that after being given that responsibility and power Greater Manchester should suddenly say to Government, “Actually, we don’t want to play anymore on this, because it is just too difficult,” I am afraid that that is not a mature way to do politics. We have to take responsibility for finding a way through. Ultimately, when housing development need is identified, it will affect our constituents, and we have a responsibility to ensure that the next generation will be provided for. We need to provide for the right type of housing in the right place in the future. There are no easy answers in this situation, but I think there may be an easier way to get where we want to go than the journey we have taken so far.

I have heard the politicisation of the issue, in terms of Greater Manchester having a Labour Mayor, among other things, but it does not matter what party the Mayor represents. There is a legal responsibility, passed down by central Government, to produce a spatial framework covering the whole of Greater Manchester —and, by the way, without a spatial framework the responsibility would fall on each of the 10 local authorities individually to create a new local plan, which would have a worse impact on most places, in terms of the distribution of development, and probably run a greater risk of a developers’ free-for-all if the plan was not in place at the right time. It is in our collective interest to try to find a way through.

My boss, my hon. Friend the Member for Denton and Reddish (Andrew Gwynne), should have been here today, but he is self-isolating. He has been clear from the outset about the balance between making the mature response and planning ahead, because that is the right thing to do, and giving voice to constituents. There are proposals to extend the Bredbury Park industrial estate into the Tame valley but he and local people have worked out that that could be accommodated at Ashton Moss. We have to find a different way of engaging the public, so that together we co-produce the future of Greater Manchester. We cannot have people believing that the future is being done to them or that the future of the places and communities where they live and grew up, and in which they have a stake, is being decided without them.

My first submission went to 70 pages. I have a quite geeky interest in some of the issues—and they are important. It was a call for the development of more neighbourhood plans. I would love people in my constituency to come together to co-produce the development of their area. The evidence from across the country is that when local people have the task of developing neighbourhood plans they come up with greater housing numbers than were originally proposed, because they know the infill sites that could be developed, and they know the community better. However, of course, for a geographical area as large as the one that the spatial framework covers, it is not possible to do those things within the timescale that has been announced.

I remember asking a previous notMinister in this Chamber whether the Government would give way and allow us to develop a new population evidence base. If we are not allowed to use the most up-to-date, bespoke evidence base for our population estimate, we will always provide more, because we will not believe the estimates are correct. I do not think that there is a single MP in the Chamber who believes that the current population estimates proposed by the Government are anywhere near the reality on the ground. They do not even take into account the impact of Brexit and the new immigration system, let alone other issues. There is also a general belief that even the employment land evidence base is not robust enough—and that is before getting on to the type of employment and the nature of the employment structure that we want in Greater Manchester. Time was, for a town such as Oldham, which was built on the mills, that tens of thousands of people came to work in the palaces of industry—to take a rose-tinted view of them. Now, square footage does not equal jobs. The rise of automation means that the huge factories and distribution centres that have been developed do not mean thousands of jobs. For a town such as Oldham, we want to be ambitious—realistic, yes—about the type of employment that we will get.

On infrastructure, as much as we talk about the need for schools, GP practices, hospitals, transport and all the rest, we should also talk about broadband and how the future world of work will be. What type of connectivity will people need? That is where Greater Manchester deserves great credit, because it is trying to connect the 2040 transport plan to ensure that we bring together how our conurbation will develop, in terms of planning, employment and physical development, and how people will get to work and share the area. There is no doubt that Greater Manchester cannot do that by itself.

Every Member of Parliament, regardless of which party we stand for—although I am afraid the weight falls on the Government—has to accept that if our shared belief is that “brownfield first” is a policy that we should pursue, we have to accept that a cost comes with that. It cannot be done on the cheap. It is not just about the cost of remediating a site that might be polluted; there is an issue in towns such as mine, where the end values are so low that the gap is even tighter. We need far more effort on that.

We also need a more radical plan to address the current housing stock, not just one that talks about building new stuff but ignores the substandard housing conditions that many people in Greater Manchester live in. The housing market renewal programme that was cancelled in 2010 intended to remove a lot of substandard accommodation—terraced streets in Oldham that were not fit for purpose—and replace them with decent quality family homes. When that money was taken away, nothing followed it. We have to address the poor quality that exists today and improve the standard across the board. Of course, we have to plan for the future, but that has to be done in partnership.

I genuinely hope that we will work together, not to pass the buck between Westminster and Greater Manchester, or between Conservative and Labour. The community expects us to be mature, to grow up and to work in partnership to find a solution. We need bespoke population data for Greater Manchester, in partnership with the Government and Greater Manchester, a more ambitious fund for brownfield sites in Greater Manchester, so the sites that we identify can be brought to market and developed in a reasonable timeframe, and far more ambition on the infrastructure investment that we need. I genuinely believe that if we work together, we can bring local people with us. But if local people continue to see debates such as this, where we pass the buck between different parties and from central Government to local government, I am afraid that will reflect badly on us all. Let today mark the change that our communities want, and let us begin to work together on it.

--- Later in debate ---

[Christopher Pincher]

I certainly agree that local authorities should work together and should work collaboratively. Of course, they have a duty to co-operate, so I encourage local authorities in and around Greater Manchester to work collaboratively together.

[Jim McMahon]

On a point of clarification, it is not the case that the Government believe that 2014 is the most appropriate evidence base; it is just that they did not have faith in the more recent population data, because of some anomalies that came out of it. For instance, Cambridge showed an under-supply of housing as a result of the more recent population data. It is not the case that 2014 was the point to which we should go because it was more accurate in that sense. It was a mistrust of the more recent data. It makes complete sense to suggest that we now go to the 2018 population data, and that, for me, would seem to be the most appropriate route. The idea that we use data that is now six years old does not make sense.

[Christopher Pincher]

As I said, we believe it to be the better method. The hon. Gentleman has already pointed out that the more recent analysis has thrown up some anomalies, so we believe the 2014 figure to be the better one, but the Secretary of State has said that he will review the NPPF, so I hope that the hon. Gentleman will watch this space.

I would also like to highlight a number of Government priorities, which are reflected in our national policy, such as our protections of the green belt.

[Christopher Pincher]

We want to ensure that we build more appropriate homes. We know that we need those houses and the right sort of houses, with the right quality. Local need needs to be determined locally. The starting point is the minimum, not the maximum figure. The Secretary of State will talk about potential changes to the NPPF in due course, so I encourage the hon. Gentleman to make his further points in his own unique and eloquent way when the time comes.

In a moment, I will speak about our priorities on the green belt—support for prioritising brownfield development and our desire to see plans in place—but my hon. Friend the Member for Bury North also mentioned flooding as an issue of concern. As he knows, in the Budget speech last week, the Chancellor announced £5.2 billion of investment in additional flood defences. That will seek to ensure that communities around the country know that future development will be safe from floods. We will assess whether existing protections in the NPPF are enough, and we will consider options for further reform in our wider ambitions for the planning system. I hope that gives my hon. Friend and other colleagues some reassurance.

My hon. Friend also mentioned housing type as an issue, with large numbers of four or five-bedroomed homes. I draw his attention and that of the Mayor and the local authorities in Greater Manchester to the NPPF, which is very clear that local authorities need to identify homes of the right size, type and tenure, as necessary for local people. That needs to be reflected in their planning priorities, which I am sure is a point that my hon. Friend the Member for Bury North will make to the Mayor and his local authority.

[Jim McMahon]

Will the Minister ensure that, when we talk about flooding, we do not jump automatically to the issue of sites that historically were flood plains or have the potential to be at risk of flooding in future? We must also consider the wider infrastructure. Much of our existing sewerage infrastructure is Victorian, and was not built to take on the type of capacity that it is now expected to with the developments that keep getting added on to it.

[Christopher Pincher]

The hon. Gentleman is right that infrastructure needs to be fit and proper for the purposes to which it is put. We recognised that in the housing infrastructure fund made available to local authorities around the country, and will do so in the HIF successor, the SHIF, the single housing infrastructure fund.

A number of colleagues mentioned brownfield sites in their contributions. In last year’s debate on the GMSF, brownfield cropped up again and again. Last week’s “Planning for the future” statement by my right hon. Friend the Secretary of State made it clear that we will invest £400 million to use brownfield land more productively. We want to work with ambitious Mayors—I suspect that Andy Burnham categorises himself as such—and with local authorities to regenerate local brownfield land and to deliver the homes that their communities need on land that is already developed. That built on our previous work with mayoral areas, such as the £300 million housing investment fund agreed with the devolution deal in 2014. That is entirely devolved to the combined authority, and can be put to good use.

We will also provide local authorities with greater funding for infrastructure, ensuring that those who strive to build enough homes for their local communities and make the most of brownfield land in urban areas are able to access sufficient resources. In Greater Manchester specifically and most recently, we announced £51.6 million of forward funding to unlock more than 5,000 homes and funding for 10 marginal viability schemes worth £62.5 million, unlocking some 6,000 homes.

The Government have a number of other funds that can unlock tricky brownfield sites. They can support small builders and provide necessary infrastructure for development. They include the small sites fund, land assembly fund, land release fund, home building fund and public sector land funding. I hope that addresses some of the points that the hon. Member for Stretford and Urmston made about her constituents in Carrington. I encourage colleagues of all political stripes and persuasions to encourage the Mayor and their borough leaders to ensure every opportunity is taken to get the funding for the communities that they want and need.

The Government have placed their faith in the people of Greater Manchester and their elected representatives to shape their own future. We have backed that up through the devolution of wide-ranging powers under the leadership of the elected Mayor, who in this case is our former colleague, Andy Burnham. It is his role to work collaboratively across Greater Manchester and the political divide to provide leadership and a coherent vision of what is required. I am sure that colleagues across the Chamber will want to play an important role in nudging the Mayor in what they believe is the right direction for the GMSF.

Local Government Responsibilities: Public Services

Jim McMahon Excerpts

Wednesday 18th March 2020 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

This is a very important debate at a very important time, and I thank my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) for her introduction in opening it. I also thank the Minister for the spirit in which he conducted the response. For Members across the House, a lot is going on at the moment: tensions are heightened and people are fearful in our communities, and we have all received an increasing volume of correspondence from people desperate to find out what happens next, what this means, and how they can get help and support. It is telling therefore that so many Members have stayed for this debate just to put on record our appreciation for the time given to this important issue.

In particular, I want to reference the Select Committee—and my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) in particular, previously a distinguished member of it—for the work it has done on a number of reviews. On almost every issue and in every policy area, a consistent theme came out, which was that the Government did not have a grasp of the scale of the impact of the decisions they were making on the communities affected by those decisions. Whether it was housing, planning, local government finance, adult social care, children’s services or homelessness—you name it—every review had that strand going right through it.

It is absolutely right to point out that a decade of cuts has taken its toll. Critically—and let us be honest, this issue has transcended different Governments—the absence of a proper assessment of the responsibilities placed on councils, which would then allow an informed assessment of the cost of delivering those responsibilities, is a glaring omission that we need to put right. It is staggering that we are carrying out a fair funding review without having reviewing the responsibilities. That cannot be a real, balanced assessment of the costs of view of delivering services.

Of course, the debate naturally goes on to social care workers and the genuine concern about the type of protection that they will get. This is a constant frustration. We all love the NHS: it is part of who we are as a nation. The NHS gives us help when we need it most, when we are at our most desperate; it brings new life into the world, and we all celebrate that; and it supports us when our loved ones are reaching the end of their time, and right in the middle of that experience, too. It is a frustration for local government, though, that social care is always placed in second or even third place behind the NHS. I just do not understand it: surely if someone is giving care in a hospital environment, they have the same value as if they were giving care in somebody’s home environment. The skill and compassion that person needs, along with their dedication to public service, are critical requirements.

Let us look at what it feels like to be an adult social care worker. First, they are often not treated with respect by the person employing them. We have only recently made progress on 15-minute visits, pay for travel time, not deducting uniform costs and all those types of issues, but even now many are paid the minimum wage or just above it, and that is not even enough to live on. It starts at the beginning: we say that we value care as an industry because it is so important to our society, but the apprenticeship levy rate for care is the lowest possible rate that can be paid for that skill and training provision, at £3,000 a year. A fencing installer who takes on an apprentice can attract £12,000 a year, but that adult social care worker on an apprenticeship attracts only £3,000 a year. There is a real question mark about how we value care as a career. Let us be honest: we have got away with it for too long. As a society and as a nation, we are not paying people a fair wage for their responsibilities and the importance of the job that they do. That just has to change. It will have a price tag, but we should really value the work that they do.

[Christian Matheson (City of Chester) (Lab)]

In the NHS and social care so many of these employees are taken for granted. Their skills in dealing with people—patients, clients, or whatever we call them—is taken for granted. The sector is to a large extent running on the good will of its employees.

[Jim McMahon]

That is absolutely the case, but it is also running on high levels of vacancies—there are 120,000 vacancies in adult social care. We are highly vulnerable to staff in that industry becoming ill and going into self-isolation, which is why the question of the protection and support they are given becomes so important. It is absolutely about making sure that, first and foremost, they are considered in the same way as hospital staff. Making sure that they get the proper protective equipment that they need is critical, not just to protect the patients who are being dealt with and the receivers of adult social care, but for the individuals who are placing themselves in a very risky situation, going into people’s homes without knowing who that person has been in contact with, but doing it anyway because they believe in the care they are offering.

My hon. Friend the Member for Poplar and Limehouse (Apsana Begum) made a really important point that went beyond adult social care: the fabric of our society has changed as a result of the cuts. The 70% reduction in youth services has almost certainly had an impact on knife crime, on county lines, and on whether people feel they have a stake in the future.

[Helen Hayes]

My hon. Friend is making an excellent speech. Does he agree that in this time of crisis central Government support for local government is urgently needed in respect of protection of our young people, who may be even more vulnerable to violence as a consequence of the lack of support systems, of activities and of the people who are normally are responsible for keeping them safe day-to-day?

[Jim McMahon]

That is absolutely true, and it is also true that many lives are lost, in terms of potential, through the criminalisation of young people who are effectively groomed into criminality by those in positions of power or authority in the community who attract them in and entice them. We need to do far more to make clear to young people across the country that there is a real alternative when it comes to leading a fulfilled life. Until then, we will never break the cycle of young people being caught in crime unnecessarily.

This goes right to the heart of the “cradle to the grave” approach to public service. We cannot ignore the impact on Sure Start centres, which were about investing in young people and giving them a taste of what opportunity was from the time when they were young and receiving that type of care. Taking it away has had a massive impact, and that is before we get on to primary school budgets and special educational needs. Young people are just not receiving the tailored support that they need.

However, today is also about thanking councils for the work that they do. Regardless of party affiliation, I want to place on record our thanks for the work that councillors do. They come into public service from their community because they really want to make a difference. Hearing from some of the councillors and ex-councillors who are now in this place about the passion and connection that they still feel, as I do, is very inspiring. We must also thank our council officers.

After 10 years of austerity, councils have experienced a very stressful period in trying to reconcile delivering balanced budgets to remain within the law with managing the huge demand for adult social care, children’s services and services for the homeless. People believe they pay council tax for the very neighbourhood services that are being taken away because councils cannot afford to make ends meet and provide those services. Councils are placed in a horrible position. They are trying to keep their heads above water, and providing targeted support for people who really need it, but at the same time the public are holding them to account for the real cuts that have been made locally. I do not think that that is a fair burden for central Government to place on local government.

That brings me to council tax, which is a hugely regressive tax. It has increased by a third, and what was hidden in the Budget papers was, within the lifetime of that Budget, an £8 billion increase in council tax income for the Treasury. The Government are not coming to the table and giving councils sufficient funds to deal with the demands of adult social care and children’s services in particular. What they are saying is “It is the survival of the fittest. If you can raise money through council tax or business rate retention, good luck, but if you cannot, I am afraid that you can no longer rely on central Government to step in and provide that partnership solution.”

That is just not a fair way of doing things. How can it be right that today, in England—and we have an English problem, because of the nature of how the country is governed—adult social care and people’s ability to access the care that they need will soon be determined by the house values in their area in 1991? How can it be right that they will be based on historic industrial and commercial land values and the business rate take in that area, when the council has very little control over that base? With every revaluation, we see many regions being devalued, and London and the south-east increasing in value. That will be the model, the baseline, of public service funding in the future.

I mentioned the survival of the fittest, but the fittest are not that fit. Local government still faces a £6 billion funding gap between now and 2025. There will still be people in the most affluent parts of the country who are living in absolute destitution and not getting the support that they need because councils do not have the necessary funds.

[Matt Western]

My hon. Friend is making an excellent speech. Having been a councillor myself, I can echo his comments. The difficulty for our local authorities is that in the absence of the central Government grant, they are having to be more inventive and creative in respect of how they bring in revenue streams. What we have found in the last couple of weeks and what is forecast is that certain revenue streams will be cut off, and councils will become more and more desperate to continue what few services they can maintain. When the car parking charges and the revenue streams for the local civic centre are not coming in, they will be under even more pressure than they were before. Does he agree that the local authorities need to understand urgently how the £500 million that the Chancellor mentioned will be distributed—and distributed fairly?

[Jim McMahon]

I think that is right. When councils have to look elsewhere for funding, a risk naturally comes with that. The National Audit Office produced a report on this and the Government share these concerns. The Public Works Loan Board interest rate was doubled overnight by the Government, because they are concerned about the exposure that councils face in buying assets as investments. The NAO expressed the same concern. In a two-year period, councils have been buying investment portfolio assets of £6 billion. Why? Because they are desperate to see income from other places, but this is office accommodation and in retail, sometimes not even in the area that the council is responsible for. The Government response is to double the Public Works Loan Board rate instead of addressing the fundamental reason why councils have to look elsewhere for funding, which feels illogical. We have to make sure that the base funding for councils is absolutely where it needs to be.

We are coming to the greatest test of local government, public service and society that any of us have seen in our lifetime. It will test us all. It will test the fabric of society and test public services to breaking point, at a time when they are built on extremely weak foundations. I am genuinely fearful for how we can continue this in a sustained period. For a short time, they will make it work. They will roll their sleeves up and work together. They will create a partnership at a local level and find a way through it, but the Government know full well that this is not a crisis that will last weeks or even months. A sustained response will be required and the Government will have to make sure that they give local government the funding that they need to provide the critical response. We also need to manage public expectation.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Is my hon. Friend aware that only today, local government has received a directive from central Government to provide street sleepers—homeless people on the streets—with self-contained accommodation? Great idea, but where are they going to find it?

[Jim McMahon]

It is also the case, as I hope most Members know, that solving homelessness is not just about providing a roof. That is a critical part of it, but it is about how the ecosystem of public service works to make sure that the alcohol and drug addiction services, mental health support and physical health support are in place. We need to make sure that this is not just about giving someone a set of keys for a property—by the way, if that was possible, why did we not do it before this crisis? —but making sure that the wider support is in place.

The Government need to be honest about the scale of the challenge that public services will face. I still believe that at this moment, the public of this country do not understand the scale of what may face us all and particularly the impact that it will have on public services, and not just for the workforce. We need to remember, when we talk about public services and the community over here, that public servants are the community. They live and work in the communities where we all do. If people are off work because they have to self-isolate, are ill or have caring responsibilities, that will have a direct impact on the local government workforce. Many will have partners working in the private sector, as well as the public sector, and they may well face redundancies and hours being cut in the family. They will go through the same financial stresses and strains, and there will be an impact on family life in the same way. The Government need to be honest about what that means for day-to-day public services, and what the public can expect when we really have to pull through to make sure that we can keep the most urgent critical care going in this country.

The Chancellor said that money will be made available, but we see a drip feed of those announcements in a way that is not helpful for local government. The public health settlement for next year was released only yesterday, 14 days before the end of the financial year. Local councils were not even able to plan ahead about what that meant. We cannot have that when it comes to a crisis of this scale.

I have always believed that our local government is the first line of defence and the frontline in delivering public services. I have always believed that they are the glue that holds our community together, that they are the leaders of place and that they can stir us to a better future. We have seen that in the way that they bring communities together, invest in their local economies and deliver decent public services. What we will demand of those people in the coming weeks and months will test us all, and it will test their resolve. It will not be good enough just to say, “Thank you for all that you do,” without addressing the fact that, for 10 years, they have had to shoulder a disproportionate burden of austerity. Surely, now is the time to say to those people, “We will right the wrong of making you take on that burden of austerity. You were not the bankers, you did not create the financial crisis, and it was wrong to place you in a position where you had to bear a disproportionate burden.” We need to put that right today.

We need not just money for the current crisis but sustained funding so we can rebuild public services, invest in our frontline and do more than just give those people one word. By the time we get through this, they will not be just the frontline that we respect; they will be seen for the heroes that they are.

--- Later in debate ---

[Christopher Pincher]

I am grateful to the hon. Lady for her further intervention. I know and understand the point she is making, and we have already made funds available to local authorities. The Chancellor, in his Budget speech, made clear the support we want to give. He made further announcements yesterday and, if she is prepared to bear with the Government a little longer, I suspect further announcements will be made as the situation evolves.

As the Under-Secretary of State made clear in his opening statement, this funding is in addition to extending SSP and a range of other measures by the Department for Work and Pensions.

[Jim McMahon]

Local authority base budgets are based on an assessment of council tax collection rates. If people are made redundant or if they move on to statutory sick pay, they will clearly not be able to afford their rent, let alone their council tax. We expect councils to withhold any enforcement action, because that is the right, moral thing to do, but surely the Government will provide compensation to protect the base income of those councils, and surely they must now consider whether people should have the protection of a council tax holiday, too.

[Christopher Pincher]

I am grateful to the hon. Gentleman for his intervention. As the Chancellor made clear, we will do whatever is necessary to stand behind our public services, our local authorities and our volunteers to get through this crisis. More announcements will be made in this fast-moving situation, so I ask him to bear with the Government in that regard.

As hon. Members will also be aware, yesterday, my Department announced £3.2 million in initial emergency funding to help rough sleepers or those at risk of rough sleeping to self-isolate to prevent the spread of this virus. The Under-Secretary of State, the homelessness Minister, made that point in his opening remarks; I just wanted to reiterate it to ensure that colleagues who have come into the Chamber more recently have heard it.

A number of Members from across the House raised the question of whether the Government have provided sufficient funding. The first point I would make—I have made it already—is that this situation is changing every day. The Government are responding at pace to the evolving challenges and working closely with the Local Government Association and other local authority representatives to understand the effects of covid-19 on the delivery of statutory services, including social care. The second point is to stress that the announcements that we have made so far, including those from the Chancellor last night, do not signal the end of the Government’s response; they signal its beginning. We stand ready to do more and we will go further as necessary.

A number of colleagues raised the question of our social care workforce, including those who care for the elderly and vulnerable in care homes and in their own homes. Building on our existing strong local relationships, the NHS and local authorities are working with care providers to make sure that people receive the specialised care and support they need during this outbreak. Councils will map out all care and support plans to prioritise people who are at the highest risk and will contact all registered providers in their local area to facilitate plans for mutual aid, and they will do this at pace.

Draft Buckinghamshire (Structural Changes) (Supplementary Provision and Amendment) Order 2020

Jim McMahon Excerpts

Tuesday 17th March 2020 General Committees

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

I appreciate that the Minister has a number of more pressing issues to deal with at the moment, so I do not intend to speak other than to confirm that the Opposition do not intend to divide the Committee on this issue.

[The Chair]

Right. Well, this has been a very long and difficult debate.

Question put and agreed to.

Oral Answers to Questions

Jim McMahon Excerpts

Monday 24th February 2020 Commons Chamber

[Mr Clarke]

We have introduced a number of measures to address the number of empty shops on high streets, including our Open Doors pilot project, which matches landlords of empty properties with community groups, and a proposed private register for empty commercial properties. We are also cutting the business rates bills of small retailers by 50% from this April for properties with a rateable value of below £51,000. That is an increase from the one third that we have delivered in the current financial year.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Today, the Manchester Evening News reports on the findings of the Marmot review, which are truly shocking. It says that life expectancy has fallen for women and stalled for men, the likes of which we have not witnessed for 120 years in England. The richest men now live nine and a half years longer than the poorest and the equivalent figure for women is 7.7 years. The north needs not just a rebalancing of capital, but an investment in human capital. How can any levelling up address the austerity-led crisis so that the poorest do not see a decade stolen from their lives?

[Mr Clarke]

The hon. Gentleman raises a really important point. Clearly, the process of levelling up is not restricted to that of economic infrastructure; it is also absolutely about making sure that the life chances of individuals are realised to the full. That means, for example, making sure that our skills policy works, and the Government are committed to delivering a new national skills fund—we will announce more about that as part of the Budget process. It also means that it is really important that we get the process of skills devolution right, and we are keen to make sure that we work with strong local mayoral leaders to make sure that they deliver those budgets in a way that makes a real difference. This is clearly a long-term challenge. We need to make sure that we get the right devolution models in place so that such things as the towns fund and the future high streets fund are complemented by comparable work on life chances.

Local Government Finance (England)

Jim McMahon Excerpts

Monday 24th February 2020 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

First, may I congratulate the hon. Member for Cities of London and Westminster (Nickie Aiken) on what I thought was a really thoughtful maiden speech? It is quite telling when councillors come into this place. The experience and insight they bring, regardless of party affiliation, means that we are actually at one when it comes to the need for reform of local government. I very much welcome her contribution on that point.

I thank my hon. Friend the Member for Sheffield South East (Mr Betts), who is the Chair of the Select Committee, for the contribution he made and the insight he brings to this debate. He made it very clear, from information from the IFS, that we have now seen a 20% reduction in spending power since 2010. He asked the question that we all ask: if austerity is over, what does that mean in practice? Does it mean just that the funding cuts stop today, or does it mean that we will begin to rebuild what has been taken from many of our local communities since 2010?

My hon. Friend also laid out a statistic that was new to me—I was surprised by this, but perhaps I should not be so surprised—which is that 2.4 million cases have been linked to food contamination. No doubt a reduction in the number of our public health officials has played a part in that, but in England we are behind. In Wales, a takeaway has to display its food hygiene ratings on the door of the premises, as it does on online ordering platforms, in a way that a takeaway in England does not have to do. In addition to the need to rebuild our public health functions, we need to move forward and make sure we have mandatory food hygiene ratings so that people can make an informed choice about where they buy food.

As always, my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) gave a real insight into the impact of cuts and austerity on her community. There are a staggering 848 looked-after children—almost doubling since 2010—with council services left at crisis point. There is a real tension: the Government have of course reduced the central grant and council tax is going up all the time, but the very councillors who are working to protect their community and their council often face the most criticism from local people for the very difficult decisions they have to make. That is a very difficult task for many.

My hon. Friend the Member for Harrow West (Gareth Thomas), as always, gave a London insight, painting a picture that we are not always used to hearing about in this place. We very much hear the story that London is thriving and the rest of England is really struggling, but we see real pockets of deprivation in this great capital that should shame us all. We are seeing every local authority really struggling to make ends meet and demand for services really going through the roof.

My hon. Friend also made the case, and I absolutely support this, for saying that we cannot believe that devolution in London has finished. The problem with devolution in England is that we look to London, and we discount it for the rest of England, believing that the job here is done, and it absolutely is not. If we look at devolution in our major cities around the world—New York, Tokyo and other places—we see real fiscal devolution and real law-making powers devolved to a local level, in a way that leaves London in the shadows. When we talk about levelling up, there is a need not just to talk about redistributing finance and capital investment, but about the powers needed across all our major towns and cities in this country to make sure that every community has the right to determine their own future.

My right hon. Friend the Member for North Durham (Mr Jones) was absolutely blunt in his assessment. It was interesting to hear the exchange across the Chamber on parts of that, but we can understand why tempers are so frayed on this fraught issue. How can it be right that 40% of a council’s budget—£232 million—has been taken away from local public services. In the midst of all that, when my right hon. Friend raises those issues and the impact on his community and reflects on the local authority’s difficulty in trying to balance the books, we have people who for reasons of cynical political game playing decide to make the local council the target, instead of laying the blame where it thoroughly deserves to be, which is of course with the Government who are pushing through those cuts.

My hon. Friend the Member for Enfield North (Feryal Clark), a councillor for 14 years, is also adding real quality to this place. We need more councillors coming here—maybe it should be a prerequisite of coming to this place, as perhaps then we would have a better quality of debate. The figure of £800 per person cut from that local authority is absolutely eye-watering. Although we bat around the numbers, as they are important, what this really means is that those essential services that make a place a decent place to live have been affected: the community centre is not open any longer; the library is now closed; the Sure Start centre that gave young kids the real start in life that they need is no longer there. A startling report today says that life expectancy is going backwards for women and is stalling for men. How can that be right? We are seeing a decrease that this country has not seen for 120 years. Why? It is because of the lost decade of Tory austerity. That cannot be right.

May I just place on record, as my boss my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) did, a tribute to the right hon. Member for Rossendale and Darwen (Jake Berry) for the work he did as the Northern Powerhouse Minister? One thing that I enjoyed about the right hon. Gentleman was that he knew how to take a good rebuttal, and the exchanges that we had were fun and in good spirit and were a good challenge. He worked hard behind the scenes to try to make progress on devolution, and I hope that continues.

My final point is that we cannot afford to continue this pressure on council tax. We all know that council tax is out of date, and maybe next April, when council tax revaluations turn 30, we can have a big party and crack open the sausage rolls, the prawn cocktails could come out and maybe a bit of fizzy orange, or perhaps we should look back and recognise that there has been a collective failure on council tax revaluation and the need to modernise. Governments duck this because it is not popular, but we now have a system that is very unfair.

How can it be right that over the last five years we have seen council tax increase by a third in England? That is not right. What would happen if income tax was increased by a third in the same period? What would happen if national insurance was increased by a third in the same period? What would happen if VAT was increased by a third in the same period? What would happen if fuel duty was increased by a third in the same period? And, God forbid, what would happen if beer duty was increased by a third in the same period? There would be a riot in the Strangers’ Bar as we speak. But of course there is not a riot over the council tax increase. Why? Because we can defer blame down to local councils, but it is just not good enough. Today we see that low-income families have 8% of their household income taken for council tax while that figure is only 1% for higher earners. That cannot be right. It is hugely regressive and it is getting worse with every year that passes.

If the Government really want to address this, it requires maturity. It requires a forward view and it requires a clear strategy that has to be more progressive and up to date, and must reflect geographical variations. It must also recognise that council tax has its limitations. Of course property tax is very important, but it cannot take the burden of adult social care and children’s services, and it cannot be right that our ability to receive adult social care in older age is determined by a house value 29 years ago, any more than whether a child gets the care that they need to protect them from harm is determined by the same measure.

We need to grow up on this; we need to tackle it, and we need a solution that puts councils in the right place for the long term.

[Mr Betts]

I agree with my hon. Friend. We need a separate funding stream for adult social care, as the two Select Committees recommended in the last Parliament. Also, my Select Committee recommended a review of council tax very much along the lines that the hon. Member for Cities of London and Westminster (Nickie Aiken) recommended, but the Government just dismissed it in their response and said they were not minded to do a review of any kind. Does my hon. Friend agree that that is disappointing?

[Jim McMahon]

It is disappointing, but is inevitable in a way, because there would be winners and losers—and, let’s be honest, the winners would be the poorest who have less agency to mount a campaign and the losers would be the wealthiest, the people with agency who can mount a campaign in objection to it, and the major right-wing newspapers will also mount a campaign against it. It will be called the garden tax, the conservatory tax, the porch tax, or the driveway tax, but it will never be a tax that is actually deemed to be fair. But that is what this country needs; it cannot be right in England that we carry on with such an unfair tax system.

If the Government want to be mature—if they want to look long-term, if they genuinely want to take the politics out of this, which is probably what is needed—I am sure our side would be looking to contribute to that, but if they want to wilfully ignore the impact on low-income families and on many local authorities now not able to fund decent local services, I am afraid they can expect strong opposition on this side.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Luke Hall)]

I thank Members from across the House for their contributions to the debate. Everybody here represents a constituency and a community that they are passionate about. We have heard many examples of public servants working hard to give back to the communities we represent. I know that many Members are proud of the services that local government provides, and I hope that this evening will be a chance for us all to back those words up with action. That means backing this settlement, which will give councils up and down the country the certainty they want and need. That is what today’s debate is about.

This is the best settlement for a decade. It puts a game-changing £2.9 billion back into the sector overall. It focuses on the priority area of social care, in which we are providing unprecedented investment. That means putting £1 billion of new funding into a social care grant, as well as continuing to provide the £410 million we invested last year and maintaining funding going into the improved better care fund. At the same time, we are allowing local authorities responsible for adult social care to raise council tax by an additional 2% above the core referendum principle to meet rising demand. That means the Government are making almost £6 billion available next year across adult and children’s social care, which is a measure of our commitment to the most vulnerable in our society. Outside of social care, we are giving local authorities stability for the year ahead by maintaining all grants from 2019-20, while increasing core funding in line with inflation. Today, the Secretary of State announced a £40 million boost to the sector from the business rates levy account.

We are proud that our settlement delivers on all those fronts, while keeping council tax low and giving people the final say on their monthly bills and the services they want to see delivered. The council tax referendum principles we have put forward today are expected to result in the lowest average increase in council tax since 2016, protecting taxpayers from unaffordable and unwarranted hikes to their monthly bills. This is a great package of support for local government and one that starts to deliver on the promise to level up services across the country.

It is not just through the settlement that we are investing in local services to deliver on this agenda. We have pledged £3.6 billion to level up 100 communities across the country through the towns fund; committed £250 million in funding for vital infrastructure that will unlock over 20,000 homes; created a £500 million youth investment fund to pay for top-quality facilities for young people; and pledged a crucial £2 billion to back-fill potholes and make our roads safer. That is what this Government are delivering—a new programme of investment and renewal in our infrastructure and our public services.

A number of Members from across the House raised adult social care. The hon. Member for Sheffield South East (Mr Betts), the Chair of the Housing, Communities and Local Government Committee, raised a number of important points. We were grateful for his comments about the Select Committee’s willingness to work with us in the months ahead to develop a cross-party solution.

My hon. Friend the Member for Waveney (Peter Aldous) talked about the pressures on social care. We are acutely aware of the significant pressures councils face in the delivery of adult social care. We are hearing about that personally from councillors and council leaders up and down the country. The settlement put before the House today is a clear indication that the Government have not just heard those concerns but are acting decisively on them. For the coming financial year, we have given authorities access to almost £6 billion of dedicated funding. That includes £1 billion of grant funding for adult and children’s social care, on top of continuing existing social care grants.

The grant funding should not be viewed in isolation, however. As all Members know, councils pay for services in their area through locally raised revenue. That is why we have proposed a 2% adult social care precept, enabling councils to raise a further £500 million. That recognises the vital role that social care plays in supporting the most vulnerable people in society, while helping local authorities to meet the challenges posed by rising demand and pressures. In addition, the NHS’s contribution to the better care fund, which aims to increase health and social care integration, will increase by 3.4% in real terms, in line with the additional investment in the NHS in 2020-21.

The hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) talked about the pressures on children’s social care and the need to work together on the new funding formula for local government. We can give her the commitment that we will work across the House on those issues. We will shortly start to release some of the figures to working groups, including council leaders. I am very happy to meet her and her neighbouring MPs to discuss the implementation of the formula to make sure that we do our best by the 848 children she spoke so passionately about. We announced the £1 billion for next year for adults and children, which can be decided according to local need, ensuring that councils under the most acute pressure receive additional funding and support.

Of course, the best way to improve outcomes for children is to remove the need for them to enter the care sector in the first place, which is why we have committed to a further year of funding for the troubled families programme. We are clear that that essential programme continues to provide intensive support for some of the most vulnerable families in our society. One of the Government’s first announcements was to confirm the £165 million to extend the programme for an extra year, so that more families can get access to early practical and co-ordinated help to transform lives for the better. This will provide intensive support for some of the most vulnerable families and place the programme on a stable footing for the future.

Anyone who has worked with the families and key workers on the troubled families programme will be aware of the incredible relationship that some of those key workers build with the families in helping them to turn their lives around. In the last five years, over 300,000 families have reported real improvements since joining the programme and around 28,000 people have moved off welfare and into work as a result of it. The multimillion-pound funding that we are providing will enable local authorities across the country to achieve even more in the year to come by helping up to 92,000 additional families.

One of the Government’s first announcements after being returned in December was to confirm the £263 million for local authorities to prevent and relieve homelessness in their areas through the Homelessness Reduction Act 2017 and this Department’s flexible homelessness support grant.

We had an absolutely incredible maiden speech from my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken). She started by praising her predecessor, Mark Field, for the work that he did—I join her in that—and told her story about how she was the first woman to represent the seat. She is clearly going to do an incredible job. She outlined the incredible historical, cultural, economic and heritage contribution of her seat and the incredible work of the City Bridge Trust, and she talked hugely passionately about the work that she has already been involved in on rough sleeping. It is already clear from my meetings with her and her contribution in the House today that she will be hot on this topic and on holding us to account as we look to end rough sleeping for good by the end of this Parliament. She also talked passionately about local government finance reforms. I know that we will be working closely with her to develop the review of relative needs and resources in the weeks and months to come.

On rough sleeping, of course it is unacceptable that anybody should be sleeping on the streets in modern Britain. That is why we have brought forward our commitment to end rough sleeping for good by the end of this Parliament from the previous commitment of 2027, and why we have committed £437 million next year to tackle homelessness and rough sleeping—an 18% increase on last year. Our rough sleeping initiative is working, with a 32% reduction in rough sleeping compared with what it would have been had the initiative not been in place, and a 19% direct reduction, but we know how much more there is to do. That is why we are investing £112 million in the rough sleeping initiative in the year to come to continue giving people the support that they need. That will fund over 6,000 beds and 2,500 staff to support some of the most vulnerable people to move off the streets for good.

The right hon. Member for North Durham (Mr Jones) made the pun of the day in talking about the bottoms-up approach to rate relief on public toilets. The Non-Domestic Rating (Public Lavatories) Bill would have enabled this, but the Bill fell when Parliament was dissolved. We will of course consider reintroducing the measure in due course and keep him updated on that.

[Jim McMahon]

This point has been made at the Dispatch Box before, but a number of important, non-controversial Bills fell when the election was called. If the Government want to work cross-party on bringing those non-controversial Bills forward, we will be happy to support them.

[Luke Hall]

Of course we are very happy to do that. We will be bringing the Bill forward at the earliest possible opportunity, and we are happy to continue to have those discussions.

Members also touched on the importance of supporting rural communities in the settlement. The rural services delivery grant, at £81 million this coming year is, again, the highest paid out to date. We completely understand the importance of supporting rural communities, which is why in the review of relative need and resources we have proposed the crucial area cost adjustment, which will include an adjustment for the additional service costs associated with sparsity, isolation and market size. All those factors will be accounted for in a robust manner.

As positive as this settlement is, we are well aware that it does not solve all the complex challenges that councils face or relieve all the financial burdens they are shouldering, but it will help local government to address the pressures that have arisen over time, and it will give us the chance to look at the system again and make long-lasting, far-reaching reforms that will better serve communities up and down the country. Next year, we will deliver those far-reaching reforms: we will publish our devolution White Paper and set out our plans to unleash the potential of every region and to further level up opportunity; we will hold cross-party talks on social care to get this crucial issue right once and for all; we will implement the fair funding review to find a fairer, more up-to-date, more transparent and simpler way of sharing out taxpayers’ money; we will review the future of business rates, involving local government and colleagues in the House every step of the way; and we will look again at how we incentivise councils to build the homes we need.

Alongside all of this, there will be the spending review, at which we will settle the resources for local government. We intend to return to a multi-year settlement process. There will be different opinions about the way forward on all these matters, but this new and reinvigorated Government will be bolder than ever with our reforms. Deciding the future direction for local government finance will be a collaborative effort, which is why we will shortly consult on projects such as the fair funding review. We are determined to work across party lines to fix the social care challenges we have heard so much about today from Members across the House. I look forward to working with Members, many of whom spoke with eloquence and passion about the importance of solving this matter in a bipartisan spirit, to find a way forward.

That said, today is not about the fair funding review, the future of business rates or the new homes bonus; it is about giving councils the confidence and stability they need to plan for the year ahead. Today we are voting on next year’s package. I hope that every Member who wants to see local government access this game-changing £2.9 billion; every Member who wants to see this 4.4% real-terms increase in core spending power and £1 billion of new funding for social care; and every Member who wants to give local authorities the certainty and stability they need will vote for the motions tonight.

Question put and agreed to.

Resolved,

That the Local Government Finance Report (England) for 2020–21 (HC 68), which was laid before this House on 6 February, be approved.

Local Government Finance (England)

Resolved,

That the Report on Referendums Relating to Council Tax Increases (Alternative Notional Amounts) (England) 2020–21 (HC 69), which was laid before this House on 6 February, be approved.—(David T. C. Davies.)

Resolved,

That the Report on Referendums Relating to Council Tax Increases (Principles) (England) Report 2020–21 (HC 70), which was laid before this House on 6 February, be approved.—(David T. C. Davies.)