Local Government Finance

Debate between Lord Pickles and Ronnie Campbell

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

I am delighted to tell the hon. Gentleman that Birmingham faces a cut in its spending of 8.3%, and 4.3% for next year. I am also pleased to tell him that Birmingham has managed, through outsourcing, to reduce the gross level by £135 million, which is attractive. The hon. Gentleman represents a party that got us into the mess in the first place.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

It was the banks.

[Mr Pickles]

The hon. Gentleman says, “Oh it’s the banks”. Big Government, with unsustained borrowing, got us into the mess. Labour Members must take their fair share of guilt and blame for that.

--- Later in debate ---

[Mr Pickles]

Obviously, as part of my job, I have met a number of developers. Those who have reasonably full books as far as housing is concerned are the ones who have got alongside a local community. Those developers are seen not as an occupying army bulldozing over the green belt, as was the case under the previous Labour Government. They work alongside local communities, clearly demonstrating the benefits that development can bring to a neighbourhood. I think that that is the future—developers, local government and local communities working in co-operation—and that is what the Localism Bill will deliver.

[Mr Ronnie Campbell]

I met the chief executive of my local authority, Northumberland county council, last week. He tells me that he must save £100 million in the next two or three years. I hazard to say that that puts Northumberland county council in a right pickle. Is it not true that all that is happening is that services are being slashed and cut, people are being put on the dole, and the volunteers, if the Secretary of State can get them, must come in to replace them?

[Mr Pickles]

I have good news for the hon. Gentleman in terms of the loss of spending power, which is just 5.6% this year and 3.2% next year. As he is so cosy with his chief executive, he should ask him to take a pay cut to reduce central funding and the central office, to start sharing with other authorities, and instead of cutting the front line, to start cutting the feather-bedding.