Local Government Finance

Debate between Lord Redwood and Sajid Javid

Wednesday 22nd February 2017 Commons Chamber

[Sajid Javid]

The hon. Lady will know that all councils have been asked to make a contribution to deal with the large deficit that the country had in 2010. That does not mean it has not been challenging—it has been for Liverpool and other councils—but many other councils have demonstrated that there are ways to deal with that and have been able to handle the challenges well. It might reassure the hon. Lady to remind her that the Liverpool city region is part of the business rates retention pilot, which I shall address in a moment and which may help to deal with some of the challenges.

[John Redwood (Wokingham) (Con)]

Does my right hon. Friend agree that the gap between the lowest-funded authorities, such as West Berkshire and Wokingham in my area, and the highest-funded, had become too extreme and that more needs to be done to create some fairness?

[Sajid Javid]

I very much agree with my right hon. Friend. I shall in a moment discuss the fair funding review, which is an attempt to do just that.

The measures can broadly be grouped into three areas, which I shall go through during the debate. Later, I would like to update the House on another important source of Government funding for local authorities: business rates.

The first request we have had from local authorities is for increased certainty about funding. For years, councils have called for the tools to improve services and deliver efficiencies over a longer horizon. That is why the 2015 spending review delivered a £200 billion flat cash settlement for local government and why we have delivered four-year funding allocations that provide the financial certainty required for councils to be bold and ambitious. They have used that funding certainty to publish long-term efficiency plans, showing their taxpayers that they can deliver great services and still live within their means.

The story does not end there, though. Last month, we introduced the Local Government Finance Bill, which will devolve 100% of business rates to local government and enshrine in law our commitment to providing funding certainty by establishing a legal framework for multi-year settlements. The revenue support grant will be abolished, so councils will become financially self-sufficient. With services financed locally, councils will be even more accountable to their electorates, rather than to Ministers in Whitehall.

Local Government Finance Settlement

Debate between Lord Redwood and Sajid Javid

Thursday 15th December 2016 Commons Chamber

[Sajid Javid]

I always take very seriously what the Chair of the Select Committee on Communities and Local Government has to say, and I know that he considers such matters carefully. To answer his questions, he may recall that at the spending review last year the LGA asked for, I think, £2.9 billion of extra funding for adult social care by the end of the Parliament. The spending review provided more than that—£3.5 billion—and the changes that we have announced today add another £900 million on top of that £3.5 billion. That is a significant increase, and even more so when we look back at what the LGA was considering just last year.

The hon. Gentleman asked about the allocation of the £240 million that would otherwise have gone into the new homes bonus. He will know that the allocation of the improved better care fund, which is worth £1.5 billion by the end of this Parliament, takes into account the council tax-raising powers of each local area. The £240 million is allocated based on relative need, and I think that that is the best way to do it.

[John Redwood (Wokingham) (Con)]

I quite agree with the Government that we need more money and reform. The two local authorities serving my constituency were short-changed in the past, which is a separate issue. On the general question, what can be done about the perverse incentive created by the fact that if a council does not come up with a timely care package, a person will stay for longer in an expensive hospital bed, where they do not want to be and which is needed for other purposes?

[Sajid Javid]

My right hon. Friend highlights the vital issue of more and better integration between the healthcare system and the adult social care system. I referred in my statement to places where we are seeing good practice. I mentioned Manchester and Northumberland, and there are some other such areas. Many areas can learn from that, especially on things such as delayed transfers of care. We want to see more work in this area. That is why the Department has already started to work with the Health Secretary on a set of principles that we expect to be implemented as local authorities access the additional funding.

UK Steel Industry

Debate between Lord Redwood and Sajid Javid

Monday 11th April 2016 Commons Chamber

[Sajid Javid]

As I said in my statement, I commend the Scottish Government for what has been done in respect of the two mills in Scotland, but I hope the hon. Gentleman recognises that the scale of the problem in the rest of the UK is a great deal larger, and I hope he can find it within himself to appreciate the challenge that the industry faces throughout the UK in particular.

I think that the hon. Gentleman is wholly wrong to suggest that the Government have not taken action already in providing help for the industry. I gave a number of examples in my statement, but the action on energy prices is making a big difference, and the action on procurement is also making a difference. I urge the hon. Gentleman to work with his colleagues in Edinburgh to see whether they can change their procurement rules to help not only Scotland, but the UK.

[John Redwood (Wokingham) (Con)]

Will the Secretary of State look at finding a long-term, cheap energy solution for Port Talbot, which is crucial? What constraints is the European Union placing on aid to the steel industry?

[Sajid Javid]

I can give that commitment to my right hon. Friend, who speaks with a great deal of experience both of Wales and of business. He is right to identify energy as an issue. I do not believe that the constraints are coming from the EU, and we have demonstrated that there is action that we can take, but there is more that we can do. My right hon. Friend has good ideas and I look forward to discussing them with him further.

UK Steel Industry

Debate between Lord Redwood and Sajid Javid

Monday 29th February 2016 Commons Chamber

[Sajid Javid]

I think I have already answered that question. We have been working closely with the industry to deliver as much support as possible. At October’s steel summit, the industry had five asks of the Government. Today, I am pleased to say that we have already delivered on four of them. Let me take this opportunity to thank my colleagues the Minister for the Cabinet Office, the Minister for Small Business, Industry and Enterprise, and the Commercial Secretary to the Treasury for their unstinting work.

[John Redwood]

Will the Secretary of State tell us what he and his colleagues in Government can do to ensure that in big public sector procurement programmes in defence, railway engineering or construction, we get the maximum British content for the steel industry?

[Sajid Javid]

That is an excellent question, and that was the second ask from the industry. Let me address the first ask, and I will come right back to that point.

The first ask was for lower energy bills. We will shortly be paying compensation on renewable energy costs, and we are in the process of securing agreement to exempt energy-intensive industries from such costs. The second ask was for more British steel to be used in public building projects. We have issued updated procurement guidance to all Departments to make it clear that they can now take into account wider socioeconomic considerations, as well as cost, when making purchasing decisions. We are the first member of the European Union to be able to use those new rules. We have also mapped rough estimates of steel that could be used for major projects including High Speed 2, new nuclear and offshore wind. We have shared those estimates with industry and will continue to keep it updated.

Trade Union Bill

Debate between Lord Redwood and Sajid Javid

Monday 14th September 2015 Commons Chamber

[Sajid Javid]

The hon. Gentleman will know that the certification officer is the regulator for trade unions, and it is perfectly usual for the regulator to be paid for by those whom they regulate.

[John Redwood (Wokingham) (Con)]

Does the Secretary of State agree that modern unions are at their best when they work with employers to get more skills, better training, higher quality work and better paid jobs, and that strikes are deeply damaging to the interests of the employees as well as the employers?

[Sajid Javid]

My right hon. Friend is absolutely right. At the heart of this Bill is partnership—partnership between trade unions and employers and other stakeholders. A great example of that can be seen at Toyota in Britain. It has not had one day of industrial action in 20 years, and that is because of the partnership that it rightly has with its trade union.