Local Authorities: Essential Services

Lord Wallace of Saltaire Excerpts

Thursday 24th January 2019 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, I want to take up the theme my noble friend Lady Thomas of Winchester began with. Bradford Council, looking to cut as many non-statutory and non-essential services as possible, has just closed almost all its remaining public toilets. This is both an important local issue and a historical issue for Saltaire. Saltaire was built partly to improve public sanitation, moving Titus Salt’s works and workforce out of the cholera and typhoid-infected city of Bradford and housing them in terraces with back alleys wide enough for donkey carts to empty their toilets regularly. In the 1850s, that was state-of-the-art public hygiene. Now that the village has become a world heritage site, we welcome busloads of visitors, both schoolchildren on educational visits and retired sightseers. The first thing they ask when they get off the bus is, of course, where the toilets are. They are closed, until some local voluntary society can find the money and the staff to reopen them. So Saltaire has come full circle: we are back with an acute problem of public hygiene, and a council that says that the local shops will just have to offer visitors their facilities; private provision for a core public need—and yes, there is no disabled access.

I say to the noble Lord, Lord Bird, that in a local community like Saltaire, which is increasingly professional and prosperous, there is some prospect that local activity on a voluntary basis can supply some of this need. However, four to five miles down the road, deprived and depressed communities in the centre of Bradford need help. That has to be public help, because people who are just about managing do not have the spare capacity and the self-confidence to take up things which are left by public services.

I do not entirely blame Bradford Council, in spite of the threat this poses to our local shops and the business rates the council draws from them. Like other councils across Yorkshire, Bradford has lost nearly half its central government funding in the past 10 years, and is expected to lose more within the next two to three years. Adult social care costs are rising as the local population ages, and the need for children’s social care is rising as school budgets are also squeezed, and as families on marginal incomes fail to cope. As elsewhere, libraries, museums, open spaces and road repairs have all been cut. The current forecast is that the council will nevertheless run a deficit of over £60 million in the next two years. Next door, Leeds estimates that it will have a financing gap of £100 million by 2020-21.

I blame the Conservative Government and its predecessors, through the coalition to Labour under Blair and Brown, and back to Major and Thatcher, for the financial crisis that local government is now in. I remind the noble Lord, Lord Beecham, that the 13 years of Labour government before 2010 were not a golden age for local authorities and local authority funding either. Margaret Thatcher was deeply unsympathetic to local democracy and local government. The fiasco of the poll tax left behind an unreformed council tax system as the primary source of local revenue, topped up by central grants which were shaped by party-political considerations more than local need. I remember the years in which we paid higher taxes on our house in Labour-run Bradford than in the larger house we had in Conservative-run Wandsworth. I fear that, under the new funding formula, we may return to something like that.

As several Members have said, England has become the most centralised state in the democratic world. The Government have been offering devolution packages, with some extra funding, to city regions—although tied to what Ministers in Government think matters, not what local representatives prefer—but the devolution process also now seems to be stuck. As the noble Lord, Lord Kerslake, and other noble Lords said, England is also the most geographically unequal country in Europe, which is evidence that no recent Government—I stress that again to the noble Lord, Lord Beecham—have invested sufficient priority in fiscal redistribution or in regional regeneration.

The weakening of local government has contributed to popular alienation from government as such, from which the country now suffers. Looked at from the former council estates of north Bradford, government is remote and hostile: local police are thinner on the ground, local services have shrunk, parks and playing fields have been neglected or closed, and public transport has been privatised and is infrequent and expensive. No wonder so many people in places like that voted “sod off” to political elites in the referendum two years ago; the political system seems to have abandoned them, and they see Westminster politics as a party game in London. I say to the noble Lord, Lord Liddle, that merging local authorities into larger units will further weaken local community and local accountability, and we ought to realise the political and psychological cost of that.

Some within the Government clearly do not see the provision of public services through local government as a necessary or essential activity. Continuing cuts year by year, which in real terms will have reduced central government funding for local authorities by 60% by 2019-20, without any attempt to reform and widen local sources of revenue, will cripple and demoralise local authorities and their workforces. I suppose it is sadly appropriate that the first councils to go effectively bankrupt are Conservative-led. Perhaps that explains why no Conservative Members of this House who have local government experience are speaking in this debate.

[A noble Lord]

What about Lord Patten?

[Lord Wallace of Saltaire]

Yes—distant experience.

There is a transatlantic anti-state ideology behind this long-term shrinkage in public provision. I recall during the coalition a conversation with the then Deputy Prime Minister Nick Clegg, in which he said that we had to support some reductions in government provision to bring the proportion of government spending within GDP back to 40%. But since 2015 the trend has continued downwards, with both Philip Hammond and Boris Johnson still promising further tax cuts to come, without spelling out what that will mean for education, social care, policy, prisons and probation, roads and public transport. The TaxPayers’ Alliance, the Institute of Economic Affairs and their fellow travellers still argue that no state should raise more than 35% of GDP in tax. You can do quite a lot with 5% of GDP.

For most people politics is local, and public services are judged by what they provide to the local community. Non-statutory local services also matter. They contribute to the strength of local communities and the quality of local life. Edmund Burke cherished local communities and local self-government as the core of a thriving society. Harold Macmillan’s Conservative Government also cherished local government. Margaret Thatcher’s legacy is a centralised English Government who mistrust local democracy and squeeze local funding. In the long run, that is a danger to democracy as such.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I am most grateful for all the valuable contributions to this debate. It has been frank and honest and, obviously, it has given us much to consider and ponder. I will ensure that any particular points of detail, or indeed anything else that I have missed, are covered in a letter to noble Lords. I am sure that it is understood that this debate has covered many different areas of governmental activity, and quite correctly I would not want to mislead. I will also ensure that the debate is brought to the attention of all government Ministers because it has touched on so many subjects. I want in particular to thank the noble Lord, Lord Scriven, for introducing the debate so effectively and enabling us to discuss these very important issues.

I certainly concur with what has been said about the vital importance of local government at all levels, as the noble Lord said in opening the debate. That work is important not just for local government; it is vital for everyone living in our communities. We all benefit from the considerable work that is done by councils. I should like to thank all those who work for our councils and, indeed, councillors of all political persuasions and none.

I also agree with the comments that have been made, most recently by the noble Lord, Lord Kennedy, that in so far as there is blame to apportion—and I am sure that that is the case—no party can walk away from this scot free. Only the right reverend Prelate can leave with his head held high, not having been steeped in the blood of any mistakes which have been made. It is best that we are candid about this, so I will say no more on that. However, it is an important point to make.

I shall first cover matters of local government finance and council tax and then say a little about the structure of local government. Finally, I will deal with the many issues relating to local services which have been raised.

First, I understand what has been said about local government finance over the years. All the political parties have been in government during a time when incredible pressure has been put on to local government—that is undoubtedly the case—and, again, at all levels. I would also agree with what the noble Lord, Lord Kerslake, said about how we should be grateful to local councils for doing what they have done, given the pressures that are there. He is right to point out that our thanks are due to local authorities for what they have done.

I shall make a couple of points which I do not think have been articulated in the debate. Whatever one thinks about local government, the last settlement was a step in the right direction. The chairman of the Local Government Association, my noble friend Lord Porter, who is not in his place at present, welcomed the settlement as a good one. Newcastle will see a 1.36% increase in core spending power and an increase in real spending power. Bristol, the area of the noble Baroness, Lady Janke, gets 2.24%. Lewisham will receive a 2.74% rise, Kirklees will receive 1.75%, while Watford, not doing quite as well, will see an increase of 0.8%. I am not saying that this will solve the problem, but in the spirit of being open-minded and fair, we should acknowledge that it is a step in the direction that the noble Lord, Lord Beecham, for example, is keen for us to pursue, and correctly so.

I should also say what the Chancellor and others have said: we have come to the end of austerity. I do not want to go over the history and look at the reasons for taking that action. It was needed; at least two political parties—and I think possibly three—accepted that there was a need for austerity. However, we are coming to the end of it, and that needs to be said as well.

I have referred to the cash increase, and I will touch briefly on the 50% business rates retention scheme that is due to come forward in 2021. As is currently the case where pilots are being run, that should lead to an increase in spending power for those councils.

Much has been said about the consultation on the fair funding formula, which of course sets the objective that this should be brought forward in 2021. We are still looking a little way ahead, although it is getting closer by the day. Noble Lords know that this is a consultation, so there will be ample opportunity to express views. The noble Lord, Lord Liddle, asked when the consultation is to come to an end. It is important to know when that will be, and I think that it is 21 February. There is an opportunity for people to participate in that consultation. Obviously, we will look at and consider the responses in detail. The importance of deprivation is expressly recognised in four areas in the consultation—adult social care; children and young people’s services; fire; and public health—although that is without prejudice to people to mention other issues in the consultation, if they feel that it is important that they are considered elsewhere.

Mention was also made of council tax and the local referendum restricting increases. The noble Lord, Lord Scriven, touched on this and said how important it was that we recognise that there is the power of the ballot box to restrict increases. He was thinking of council elections, which is presumably why this has not been tested by local councils—they know what the outcome would be. We are not stopping local increases but saying that a referendum should be called if local increases are beyond this. All three political parties have lived with this system, so I hear what is said but I would caution that it is there for reasons.

I have noted a couple of other stray but important issues. The noble Lord, Lord Kerslake, talked about dissatisfaction with local services increasing. I see that too. Complaints about services arise from time to time, but the latest survey taken—I have no reason to doubt it—shows that satisfaction remains relatively high, with nearly four out of five people, 78%, saying that they are very satisfied with the level of local services. I just wanted to put that in perspective. Yes, we should be concerned and wherever there is any concern with a local service we should look at it, but the level of satisfaction remains very high. If a political party got 80% satisfaction, I think we would all say, “Whoopee!” —though I cannot remember the last time that happened.

On local government structure and reform, there has been much talk—the noble Lord, Lord Scriven, raised it first of all—on devolution. The noble Lord, Lord Kennedy, talked about the patchwork of devolution. He did not seem to approve of the metro mayors, but to my knowledge he has voted in favour of every order that has come before the House on this. That does not mean he does not think we could do better, but I suggest that it shows he thought it was at least a step in the right direction. I am open to challenge on that.

The noble Baroness, Lady Janke, also talked about centralisation. We are a centralised country—that is perfectly true—but on the metro mayors we have tested opinion and proceeded where it is in favour. As I recall, the most recent exercise on regional devolution—in the north-east, admittedly some time ago—did not exactly find overwhelming support, so I once again caution a little trepidation at putting much more than a toe in the water on this. That said, we seek to redress the balance—with what admittedly is a magnet of activity to the south—with the northern powerhouse, the Midlands engine and the metro mayor system.

Mention was made of unitarisation, and in a very fair contribution the noble Lord, Lord Liddle, said this is a way of councils saving money and also potentially responding to local feeling. It might not be about just money, and in the process one of the considerations will be local support. The noble Lord, Lord Wallace of Saltaire, also discussed this but without the same approbation.

I turn to a general point on services before I look at the particulars. The noble Lord, Lord Kerslake, touched on working innovatively, which we should always be doing even if there are not significant cost pressures. I pay tribute to what local authorities have been doing in this regard. Pendle is an example. The noble Lord, Lord Greaves, is not in his place, but I am sure he would take great pride in the back-office systems and processes review that has led to significant savings and a significant increase in efficiency.

I turn to housing. I thank noble Lords for their approbation of the raising of the housing revenue account borrowing cap, which has been widely welcomed. That is absolutely right and a step in the right direction. The noble Lord, Lord Best, whom I thank very much for his contribution and for all that he does in this area, asked for a response on lifting the cap in relation to housing associations. It is not a straightforward matter, but I will get a detailed response to the noble Lord and ensure that that is in the letter copied to all noble Lords. I thank him very much for that contribution.

In this regard, mention was made of the Homelessness Reduction Act. The noble Lord, Lord Kennedy, also mentioned it briefly. All parties supported this. We can all take credit for this measure and thank the noble Lord, Lord Best, for piloting it through this House and Bob Blackman for piloting it through the other House. To my knowledge, we are funding the extra burdens, but if there are specific issues that the noble Lord, Lord Kennedy, would like me to look at, I am happy to look at them.

Having talked about innovation, I once again say that Birmingham City Council is a housing exemplar. It has done some very good things in mixed-tenure schemes, including affordable and social rent, as has Ashford Borough Council, and that is important.

Social housing was mentioned specifically. I know that £9 billion was committed in the spending review period as recently as autumn 2018.

Rough sleepers was also mentioned in different ways. Extra funding was announced last year, because this is very serious. I understand what noble Lords are saying: this is very evident on our own doorstep. But I would not want noble Lords to think it is just our own doorstep. That may be where we see it most obviously—we certainly should not forget that—but it is much more serious and widespread than that. We are tackling it.

[Lord Wallace of Saltaire]

I apologise terribly for this. I have a question the Minister might like to return to. I read the other day that the subsidy to private landlords paid in housing benefits has risen by some £10 billion in the last 10 years, which, noble Lords might like to know, is rather more than we transfer to the EU. I would love to have the figures, both for the total amount transferred to private landlords in housing benefits and for the increase in recent years. If we are talking about some £9 billion for the extra social housing account, that is rather smaller than this public subsidy for private landlords, which is clearly now getting out of control.

[Lord Bourne of Aberystwyth]

I will certainly make sure the noble Lord gets a response on those points in the letter.

The point I was making was specifically in relation to rough sleeping, which is a serious issue throughout western Europe. The only country that has seen a reduction of any significance is Finland, and we have been seeking advice from it on what it is doing on this. I will cover that in the letter, with more specifics about the funding from the centre going into helping with what is a very serious problem that affects individuals. We certainly should not forget that.

I thank the noble Lord, Lord Best, for his welcome of some of the things we have been doing on housing. I acknowledge that we have not kept him happy on all these issues, but I remain very keen to discuss these issues with the noble Lord. I know how expert he is in these areas.

I turn to education. The noble Lord, Lord Addington, spoke on this, particularly in relation to special needs. I understand his commitment to this area and the background and expertise he brings on dyslexia and in other areas. On 16 December, we committed an additional £250 million, which the noble Lord mentioned. That is extra funding on top of the £6 billion already provided for the high-needs budget this year. It is an important area and we take it seriously, and I am pleased we committed that extra money.

I turn to social care, which most noble Lords raised. I am told and can authoritatively confirm that the social care Green Paper is expected soon—noble Lords will not be surprised. After this, we will apply additional pressure to say that we really should be seeing this. It is an important area.

The noble Lord, Lord Liddle—again, very fairly—talked about the bandwidth and of other issues of importance not getting the attention they would normally have while we are dealing with these Brexit issues. I absolutely accept that; it is a point well made.

Many noble Lords—the noble Lords, Lord Kerslake and Lord Best, the noble Baroness, Lady Thomas, and others—talked about this important area. It certainly is important. Delayed transfers of care are down, and that is part of dealing with this problem. But as we have noted, there is an ageing population. As the noble Lord, Lord Scriven, said, we all have a personal interest in addressing this; we certainly have a community interest, and I welcome the wide recognition of this. When that social care Green Paper is presented to us, we will have the opportunity to go through that and to discuss this in some depth.

Meanwhile, some local authorities are doing innovative things, such as Essex County Council’s Community Agents Essex, Hampshire County Council’s telecare partnership, and the early help partnership of Lambeth Borough Council—one of the many councils that the noble Lord, Lord Kennedy, is connected with. Many innovative things are happening.

The noble Earl, Lord Listowel, and the noble Baroness, Lady Pinnock, touched on children’s services, as did others. North Lincolnshire Council is doing innovative things in supporting care leavers to secure and sustain their tenancies and making sure that families are safe and supported. I welcome what the noble Earl said about the troubled families programme providing assistance.

Noble Lords also touched on domestic abuse, and they will be aware that there has, again, been some delay in presenting the way forward. But we are keen to progress that. It is something that the Prime Minister herself is very keen on, and I look forward to that happening.

Children’s services and social care services are key areas and have attracted extra finance, but I accept that it would be far better if we did not do this on an ad hoc basis each year but looked at it in the round and had a more developed system. I hope that that can happen once we have the social care Green Paper.

Public health services were touched on. Again, I acknowledge their importance. I note that good things are being done in Newcastle and Kirklees.

On transport and bus services, I thank the noble Baroness, Lady Randerson, and congratulate her on becoming chancellor of Cardiff University, which is extremely good news for all of us. I know that the noble Baroness is well deserving of that role. She talked about her role as a councillor, but she was also in the Cabinet of the National Assembly so will understand the importance of these issues and have experience from Wales. I take particularly seriously what was a very constructive contribution with some concrete ideas of what we could do. I would welcome the ability to pass those on to noble Lords and Ministers in other departments so that they can be discussed, particularly the nexus between the voluntary sector and the established sector, if I can call it that. I know that post buses have been used on occasion in this regard as well. There were some useful suggestions there.

The noble Lord, Lord Bird, focused on public libraries, as did others. I welcome what he said. There has been some innovative work in Warrington with community hubs. I have also seen that elsewhere. Lambeth brings together different community services in the same building, the Oasis Centre near Waterloo. It was a point well made, and it is certainly important. I noted what the noble Lord said about his commitment to Sheffield. Indeed, we spent some time together in Sheffield, although I hasten to add not in his nefarious malfeasance days, but much more recently when we looked at what was being done on homelessness, social services and social enterprise.

The right reverend Prelate the Bishop of Worcester mentioned the Worcestershire Archive and Archaeology Service. If the right reverend Prelate is able to give some details, I can put officials in touch to see if other funding streams could help. I note that there is a co-service with the University of Worcester, which is something to look at for the “Faithful City”.

Waste services are vitally important. Car parking was not touched on. Public parks were mentioned, and as a department we put money into pocket parks, which are a great development—I saw one recently in Redcar, which was great.

I will deal with public toilets very quickly. It is an important issue, so I welcomed what the noble Baroness, Lady Thomas, and the noble Lord, Lord Wallace of Saltaire, and others said. When I got off the train at Saltaire, they were not my first thought: my first thought was to find the Hockneys in the gallery in Saltaire, which is a great place. But I noted what the noble Lord was saying about this issue. In the Autumn Budget, the Government announced 100% business rate relief for stand-alone public toilets, and we are compensating for lost income where there are privately run toilets, which the local authority is effectively subsidising. I will provide full details in the write-round.

I thank noble Lords for what was a wide-ranging and, from the Government’s point of view, useful debate on local government. It is vital to us, we have great people working there and great councillors, many of whom come to this House, so I do not need convincing about that. But I take it seriously, as do the Government. We will forward a copy of the debate to all government departments, and I will write to noble Lords on points that I have not been able to deal with in more detail.