Local Government Finance

Debate between Liz Twist and John Redwood

Wednesday 7th February 2024 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

For 14 years Ministers in this Government have come to the House to lay out their plans for local government finance, and for 14 years there has been a constant theme: sticking plaster policies. Instead of providing the certainty and stability that local government is crying out for, the Government have again set out proposals that have been chopped and changed in admission of their own failure. Councils of all political stripes are left shelling out millions and communities and service users are paying the price, but I do not believe for a moment that Ministers have taken the steps necessary to end this crisis—a crisis compounded by spiralling inflation and a failure to grow our economy, where councils are spending eye-watering amounts on temporary accommodation, and where at any moment the next domino could fall and another council could be on the brink of collapse. This is not sustainable. Local authorities need a Government who will support them with a long-term plan, because we are under no illusions about the scale of the problem.

[John Redwood (Wokingham) (Con)]

Given the need for a long-term plan, were Labour to win the election, how much extra would local government get in the first year of a Labour Government?

[Liz Twist]

As I will come on to say shortly, we will have a review to look at the long-term plans. We understand the problems that local government is facing.

We have heard from hon. Members on this side of the House, including the Chair of the Select Committee, my hon. Friend the Member for Sheffield South East (Mr Betts), who set out a comprehensive summary of the issues facing local authorities and councils generally and thanked councils and councillors for carrying on and doing the work they need to do to run the councils. He also reminded us of the impact of the public health cuts that local authorities have seen. My hon. Friend the Member for York Central (Rachael Maskell) referred to issues in her local authority and to the gap between rising need and available funding. As many other Members also mentioned, SEND funding is an issue, as is the impact of public health cuts.

We all understand that there is no magic wand and no quick fix, but if the Government are prepared to work with councils to build from the ground up and to deliver the services that taxpayers need and deserve, I truly believe that we can bring an end to this crisis. However, over this last decade the Government have abandoned any interest in this kind of co-operation and instead torn down the protections that were meant to prevent a crisis like this. As we have heard, they have ripped away any financial oversight of local council spending, scrapped the Audit Commission and pushed councils to borrow more and more. They have also left councils without a functioning early warning system, meaning that they cannot even sound the alarm when they are struggling.

We cannot go on like this, and that is why a Labour Government would instead prioritise stability and greater certainty, unlocking multi-year funding settlements to give local taxpayers better value for money, fixing our broken audit system to restore genuine oversight and partnership with local government, and prioritising certainty and stability over this Government’s narrow and short-term fixes to problems of their own making.