Oral Answers to Questions
Debate between Lord Barwell and Jim Cunningham(7 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Gavin Barwell
Thank you, Mr Speaker. All I can say is, “Thank goodness for that!”
On housing supply, we are measuring the total size of the housing stock, and local authorities are being asked to plan for not only the necessary number of homes but, as was clear in the discussion we had earlier, the right mix of homes for the changing demography of their area.
Mr Jim Cunningham (Coventry South) (Lab)
Why is the Minister abolishing the requirement for Parliament to approve the local government finance settlement through the Local Government Finance Bill? Is it because the Government have inflicted so much damage to local government services through cuts that they want to hide that and not be accountable to Parliament?
Local Government Finance Bill
Debate between Lord Barwell and Jim CunninghamMonday 23rd January 2017
(7 years, 10 months ago)
Commons ChamberRead Full debate Local Government Finance Bill 2016-17 View all Local Government Finance Bill 2016-17 Debates Read Hansard Text
Gavin Barwell
There are two issues here—making sure that the arrangements that we have in place cater for circumstances in which there is a significant loss in a local authority’s business rates income from one financial year to the next, and giving advance warning of the timing of closures so that local authorities have time to prepare appropriately. Perhaps my hon. Friend may wish to have discussions with the Under-Secretary of State, my hon. Friend the Member for Nuneaton, as the proposals go forward.
Mr Jim Cunningham
The Minister mentioned the fact that the Government want to grow local economies through the measures in the Bill. One problem as a local economy expands is the shortage of housing. If the private sector cannot cope, why do the Government not take the shackles off councils and allow them to borrow to build council houses, so that they can take the pressure off mortgages?
Gavin Barwell
The hon. Gentleman tempts me on to my pet subject. If his argument is that we need to build more homes in this country, I absolutely agree with him, and so does the Secretary of State. There will be a White Paper shortly with a package of measures to encourage all sectors to build more homes, but I point him to the announcement that the Chancellor made in the autumn statement of a further £1.4 billion for the building of affordable housing. The commitment of the Secretary of State and myself on that issue is clear.
The hon. Member for Great Grimsby (Melanie Onn) and my hon. Friend the Member for St Austell and Newquay referred to the measures on rate relief for public toilets. Indeed, there was quite a lot of toilet humour during the debate. Because I am not at home for my birthday, my children are watching, so I will keep it clean. I simply point out one thing to the hon. Lady. She asked whether, if public toilets were closed, the relief would still apply—whether they would still be liable for rates. The answer is quite complicated: they might still be rateable—so there is a potential for a charge—but unoccupied properties with a rateable value below £2,000 do not pay business rates, so they might fall below that threshold. If they are above it, the powers in the Bill would be applicable. I hope that that gives her the detail she was looking for.
My hon. Friend the Member for Torbay (Kevin Foster) spoke powerfully about the pressures on coastal communities and made a plea that, as we look at the fair funding review, we make sure that those particular pressures are taken into account. I know that other hon. Members will share his concern, and I thought he made his points very forcefully.
My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) spoke incredibly powerfully and showed a real understanding of the detail of local government finance. I have heard it said that when Einstein published his general theory of relativity, for a number of years only two or three people around the world understood it. I think the local government finance system is similar in that regard, but it sounds like my hon. Friend is one of the two or three. He talked about regression—the fact that the formula is not based purely on an assessment of need but takes past spending patterns as a proxy for what is needed—which means that to some degree the political decisions of different authorities have an impact. I think he was arguing that we move away from that, which is absolutely something we can look at as part of the fair funding review.
My hon. Friend the Member for Somerton and Frome (David Warburton) spoke powerfully about the importance of the measures on a rural rate relief. He is a great champion for rural communities, and we are pleased to include this measure; it will ensure that rural small businesses get the same treatment as small businesses in other parts of the country.
My hon. Friend the Member for Wells (James Heappey) spoke powerfully not just for his own constituents but for rural communities across the country in trying to ensure they get a fair deal from the fair funding review. The House considered this issue last year, and I know that he and the Secretary of State feel strongly about it, but we need to get the detail right and ensure that the formula takes account of the needs of all communities, whether inner-city areas, suburban areas such as the one I represent or rural communities, and ensure that they all get a fair deal out of the system for determining finance.
The final Back-Bench speech was from my hon. Friend the Member for Waveney (Peter Aldous). He made several points but one in particular bears repeating: about the importance of implementing the fair funding review at the same time as we extend business rates retention to 100%. It is clearly essential in those circumstances to ensure an equitable distribution of the income that local government as a whole raises through that tax. That was an important point.
The hon. Member for Oldham West and Royton (Jim McMahon), who wound up for the Opposition, made two points that are worth my picking up on briefly. He spoke rightly about making sure that the system prevents those communities from sinking that, for whatever reason, cannot raise additional funding from growth and might therefore find themselves deprived of income, which could become a self-replicating cycle. The Government want to address that in several ways. For one, we want to make sure that we get the system for local government funding right, but it will not have escaped the House’s attention that earlier we heard about an industrial strategy from a Government determined that all parts of our country benefit from the economic growth we are delivering. It is again worth looking back at the record of the Labour Government and their failure to do that. We do not intend to repeat that mistake.
The hon. Gentleman made one final point about local government finance. I want to make it absolutely clear to him that nobody on the Government Benches thinks that every single community in the country should have the same level of funding per head. We absolutely recognise that funding should be based on need. Let me give him a statistic: his own local authority has a spending power, per dwelling, of just under £1,900. In the Prime Minister’s community, that figure is just over £1,300, so his constituents are getting a spending power that is nearly 50% more to reflect the fact—quite rightly—that there are extra needs in his community. I want to make it absolutely clear on behalf of the Government that we are committed to a fair system that reflects need.
It is probably worth putting on the record some of the other things that the Bill does that have not received the same attention in the debate. The pooling arrangements and the possibility for groups of local authorities essentially to replicate enterprise zone policy is a really important measure. Some mention has been made of the powers in the legislation for the Greater London Authority and for mayoral combined authorities to levy a 2% supplement on business rates, if local business has been consulted, to fund new infrastructure. Again, this tempts me into my role as the Minister for Housing and Planning, but the Secretary of State and I are both convinced that if we want to see not just economic growth, but the housing that we desperately need, putting in place the right infrastructure is absolutely critical.
As constituency MPs, I suspect we have all quite often experienced how the resistance to building new housing in our communities is driven by a perception that over the years new housing has not been accompanied by the necessary infrastructure, so people have found it harder to get an appointment with their GP or to get their children into the local school, and found that their local trains are overcrowded or their roads are more congested. It is vital for the Government to tackle this problem, and make sure that we get infrastructure in place that will not only fuel economic growth, but help to deliver the housing that we so desperately need.
Student Visas
Debate between Lord Barwell and Jim Cunningham(11 years, 6 months ago)
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Gavin Barwell
That is something we could consider. The key is building public confidence in the system.
Gavin Barwell
If I can make progress, I will come back to the hon. Gentleman.
I will not go into too much detail on students because the previous hon. Members who made speeches set the situation out clearly, but the UK gains four clear benefits from international students, the first of which is economic. We have heard the figures for the UK as a whole, but the Mayor of London’s office tells me that the economic benefit to London, my city, is about £2.5 billion a year.
The second benefit is to the experience of our students when they are at university. I was lucky enough to attend the university of Cambridge, and can attest to the benefit I gained from studying with pupils from around the world.
The third benefit, which my hon. Friend the Member for Beckenham (Bob Stewart) strongly communicated, is to what is frequently referred to as the UK’s soft power. A 2011 Select Committee on Home Affairs report identified that 27 foreign Heads of State had been educated in the UK. That is a difficult benefit to quantify, but an important one to this country.
Gavin Barwell
It does include Syria—clearly, educating Heads of State will not be a benefit universally, but the hon. Gentleman would agree that, in general, having people in leading positions in foreign countries, whether in Governments, the diplomatic service, the military or the business community, is a benefit to the UK.
Gavin Barwell
I will take one more intervention because I am conscious that other hon. Members wish to speak.
Mr Cunningham
No one would disagree with a number of the hon. Gentleman’s points. For the record, I have always had straight dealings with the Minister in relation to cases I have pursued. Would it not be better if students from abroad were excluded from the immigration numbers? On restoring the manufacturing base, companies in the west midlands such as Jaguar Land Rover will need more and more highly skilled people, whether from abroad or from within. German companies such as Bosch and a large number of universities are in Coventry and the west midlands. Does the hon. Gentleman believe that a better approach would be to exclude students from abroad from our figures to help our exports?
Gavin Barwell
The hon. Gentleman finished his intervention just before the bell, I believe, Mr Deputy Speaker.