Higher Education (Freedom of Speech) Bill (Twelfth sitting)

Debate between Matt Western and Lord Beamish

Wednesday 22nd September 2021 Public Bill Committees

[Matt Western]

Exactly that—it is about how this Bill will play with existing legislation and how the responsibilities will be balanced. The fact, and the overriding argument, is that institutions in the higher education sector have done an amazing job of balancing the obligations and the competing freedoms that exist on our campuses, and they have done so with very few problematic exceptions. It will be interesting to see how this individual and their department will handle that. I do not hold out a huge amount of confidence and hope in what they will do, but I will be interested to see what the Minister says in response to the amendment, and we will hold fire until we have heard her words.

[Mr Kevan Jones (North Durham) (Lab)]

I have a problem with the amendment, because I think there is a lot of misunderstanding around the Prevent agenda. It is one of the four p’s—prevent, pursue, protect and prepare—which are, as the right hon. Member for South Holland and The Deepings has just said, part of the Government’s Contest counter-terrorism strategy. The principles that underpin it are democracy, the rule of law, individual liberty and the mutual respect and tolerance of different faiths and beliefs, and of those who hold none. I do not understand how it would be a problem for the director or any other institution to have to take into account issues surrounding Prevent.

It would be problematic if we started to take people out of legislation. Prevent is clearly designed to identify individuals who are at risk, and having met—in another role—the people who co-ordinate Prevent, I know that they are very skilled at ensuring that only those who need the programme are put through it. I accept what the right hon. Gentleman said about the vicar, but I am not sure that the amendment would prevent him—pardon the pun—from being referred anyway; that is more about training and ensuring that those whose duty it is to operate Prevent actually understand it. Will we get the odd case of people being referred when they should not be? Possibly, but that does not mean that those cases will be taken any further. I am sure the vicar was not taken any further just because somebody thought that he had failed in the Prevent duties.

I do not think there is any need for the amendment. The principles underpinning Prevent go to the core of the Bill, which talks about freedom of speech, democracy and everything else.

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[Matt Western]

I understand the points that have been made by the hon. Member for Congleton, and I appreciate the sentiment, but I disagree with how new clause 5 is worded, because implicit in its words is quite a narrow conception of unfair dismissal. New clause 13 is broader and affords greater protections, and I hope that the hon. Lady will support it.

Several witnesses underlined why the inclusion of employment law provisions in this conversation is so important. When questioned by my hon. Friend the Member for Brighton, Kemptown on whether employment law would be a better basis for defining some of these rights, Professor Stephen Whittle responded with a categorical yes. In her evidence, lawyer Smita Jamdar said:

“there are often cases where there is a very vigorous disagreement about whether something was an exercise of academic freedom or not when it relates to criticism of the institution.”––[Official Report, Higher Education (Freedom of Speech) Public Bill Committee, 7 September 2021; c. 57, Q110.]

Employees need the full protection of the law, which is what new clause 13 seeks to provide. Employees would not have to conform to the stringent requirements for bringing an unfair dismissal claim—usually, a two-year qualification period and a range of reasonable responses test, which is construed broadly, often in favour of the employer. They also would not be subject to capped damages awards. There was cross-witness support for this, including from Thomas Simpson, who said:

“I would seriously support considering introducing the employment tribunal as the first court to consider cases of dismissal in that situation, in addition to the existing measures in here.”––[Official Report, Higher Education (Freedom of Speech) Public Bill Committee, 7 September 2021; c. 72, Q149.]

On Second Reading, the hon. Member for Devizes (Danny Kruger) said:

“We should allow academics to appeal not just through the civil law but to an employment tribunal if their academic freedom is restricted.”—[Official Report, 12 July 2021; Vol. 699, c. 76.]

New clause 13 is actually an extrapolation of new clause 5. We think that it is broader.

[Mr Jones]

I have a lot of sympathy with this, but will my hon. Friend address the issue of tenure, which is quite a unique employment status. Will it be covered by new clause 13?

[Matt Western]

I am not a lawyer. I would hope that it would be, but my hon. Friend may well be right that it may not be covered. That would be its intent. The concern is about the vulnerability of academics in terms of their tenure and whether they will have the protections that others already have.

I hope the amendment covers that. If it does not, then perhaps this is something we should revisit. I hope the hon. Member for Congleton will recognise that our new clause is an enhanced version of what she is proposing and vote with us.

Higher Education (Freedom of Speech) Bill (Eleventh sitting)

Debate between Matt Western and Lord Beamish

Wednesday 22nd September 2021 Public Bill Committees

[Matt Western]

Of course, we all want to believe in those processes, but when the processes end up consistently with mates of the Prime Minister being appointed, it is pretty disturbing.

[Mr Kevan Jones (North Durham) (Lab)]

What the hon. Member for Ruislip, Northwood and Pinner said about transparency is correct. There might be a Select Committee looking at the individuals, but unlike the US system, there is no power of veto to stop those individuals being appointed. If a party has a majority, it will have its person, whether other people like it or not.

[Matt Western]

My right hon. Friend makes a very important point. That is one of the failings of our process in this country. I came across that when looking at international trade and the trade deals that might be struck by the US representative body. In the US, a trade deal would go before another Committee, which would have a veto on the criteria of the deal and whether it should be approved. The same thing should apply to this as well.

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[Matt Western]

I am not saying that the US has a perfect system; far from it. I am saying that the parliamentary process, or the process that involves bodies from within the democratic systems of this place, generally pales in comparison to the way the US does this.

[Mr Jones]

I agree that the US system is not perfect, but would my hon. Friend support something like the NHS appointments commission, which the Labour Government introduced? It took Ministers and politicians out of the process of appointing people to health boards, and took as its bedrock the principles on standards in public life, which were the main criteria in taking decisions. Would that not be a better system, rather than allowing the Government of the day to appoint who they want?

[Matt Western]

I was not aware of that, so there is a gap in my knowledge, but I think that is exactly the right sort of approach. We need this appointment to have credibility.

Higher Education (Freedom of Speech) Bill (Ninth sitting)

Debate between Matt Western and Lord Beamish

Monday 20th September 2021 Public Bill Committees

[Matt Western]

Yes, that is a good example of what can happen where individuals or organisations are so well funded. It can be really overwhelming and frightening to an individual or organisation when they are faced with that. Universities will be extremely concerned about this. Local government is shying away from taking on developers or other organisations because it does not have the funds. It cannot justify to the public defending whatever position it has had to take for good, democratic reason. However, it then finds itself up against it because the developers have much deeper pockets.

[Mr Kevan Jones (North Durham) (Lab)]

In a lot of cases, won’t the universities settle anyway just to stop litigation, so money will be going out of the university sector? But my concern, which I raised with the witnesses, is that state actors such as the United Front, which is active on our campuses promoting the Chinese Communist party’s philosophy, have very deep pockets to fund whatever they want to fund.

[Matt Western]

I thank my right hon. Friend for his point. I know that he is very well informed on that issue. There are bodies out there that would wish to do institutional harm on our campuses. But there is also the reputational damage that these actions can cause. Many will seek resolution out of court, and that will become more and more obvious. It is a real concern that this will see haemorrhage much-needed funding away from our universities and student unions.

Universities UK made the point that these measures will bring about a “compensation culture”, and it was not the only one. Many have said that the great fear is that they will lead to the rise of spurious or vexatious claims and that the Bill provides little protection from a funded and co-ordinated campaign, which could be launched against several institutions, as my right hon. Friend the Member for North Durham alluded to.

Many universities and student unions are concerned that they will spend significant time and money fighting these battles. They have just emerged from the pandemic; funding is challenging, and the viability of student unions, in particular, is threatened. The prospect of the £48.1 million cost—of providing information to students, of the reporting and of the potential claims—is extremely concerning.

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[Matt Western]

I understand that. My understanding of that student survey is that they complete it and assign a score, on different categories and measures, to how the university has met their expectations, to try to quantify that experience. It covers teaching, accommodation and how the curriculum has been delivered compared with their expectations. That is a positive thing.

The Opposition do not believe that there is a need for ranking. It is a qualitative measure and I think it is a stick to beat and bully those the Government may not like. I have real fears about the Bill. Increasingly, I sense that it is the work of the McCarthyite tendency, and the amendment would simply aid them in their subjective assault on the sector.

[Mr Kevan Jones]

It is a pleasure to serve under your chairmanship, Ms Cummins. I say to the right hon. Member for South Holland and The Deepings that God loves a tryer. He has come back with another amendment to try to quantify the need for the Bill. As I said last week, I feel uncomfortable with the Bill’s intervention in areas where it should not go.

I look back, possibly with rose-tinted spectacles, to the halcyon days when Conservatives argued for smaller states, less intervention and less red tape. The Bill—and the right hon. Gentleman’s amendment—puts more red tape and bureaucracy on institutions. We have just had a discussion on tort. I look back fondly to great Conservative speeches that argued for less regulation and how we should keep lawyers out of things wherever possible. Today we have a Government who argue for giving a freedom charter to lawyers, which I have never been in favour of.

There is a—perhaps inadvertently—useful part to the amendment: it might produce the evidence for the need for the Bill in the first place. One of the problems with the Bill is that we have seen very little evidence, in terms of figures, for why it is required. If the amendment is an attempt to provide that, it seems to put the cart before the horse. One problem, as my hon. Friend the Member for Warwick and Leamington said, is how we quantify this, because these will be value judgments that vary from year to year for institutions. Let us be honest: the institutions themselves will have no control over them at all, because student unions and other organisations will invite speakers and get challenged, which will be problematic.

Higher Education (Freedom of Speech) Bill (Seventh sitting)

Debate between Matt Western and Lord Beamish

Thursday 16th September 2021 Public Bill Committees

[Matt Western (Warwick and Leamington) (Lab)]

I add my personal congratulations to the Minister on her expanded responsibilities. After yesterday’s sitting, I hope that she will have a lot of time to apply to the guidance that we discussed, in addition to all her new responsibilities. I am sure she will, and that she will have many more staff to support her. I wish her well.

I understand where the right hon. Member for South Holland and The Deepings is coming from with the amendment. As we have heard throughout our proceedings, this piece of legislation is not only burdensome—and, we argue, not necessary—but has not been fully thought through. It seems to have been rushed. The 90-odd—whatever number—amendments we may be up to now seem to suggest that there is a lot wrong with the Bill.

My concern, as has been articulated by my right hon. Friends the Members for North Durham and for Hayes and Harlington and my hon. Friend the Member for Kingston upon Hull West and Hessle, is about the additional work that the Bill will lead to for students, student unions and universities, as was well said. I think back to the days of 2010 and what might be described as the Cameron Government, and there was a great blaze of “We are going to rip up legislation”, or, “We are going to reduce all the red tape and burden on business and organisations”, and yet here we are with a Government who seem to be acting in quite the reverse way. They seem to be putting more and more constraints on businesses and the public sector.

[Mr Jones]

I remember those days with affection, because at least we knew where the Tory party was. The Tories said that they would have a “bonfire of red tape”. Now, not only do we have an Administration for which that is smouldering embers, but we have the Government putting fuel on to that fire, rather than putting it out.

[Matt Western]

I agree entirely with my right hon. Friend. I am just not sure where this reporting will end. Will we end up with universities having to report about whether people are tweeting from a particular political persuasion, or the political leanings and make-up of those on the governing board, and so on? I think that is an alarming direction to be going in.

Higher Education (Freedom of Speech) Bill (Fourth sitting)

Debate between Matt Western and Lord Beamish

Monday 13th September 2021 Public Bill Committees

[Matt Western]

Q Do you think that academic freedom needs stronger definition?

Professor Layzell: I think the definition is fine. We have the concept of academic freedom of speech within the law already. This puts a nuance on it, but I think we are quite happy with the definition as it is.

[Mr Kevan Jones (North Durham) (Lab)]

Q The problem with the Bill as it is written is that there is no stipulation that, per your very sensible suggestion, people would have to go through the internal complaints process first, which is the usual thing for ombudsmen and anything else. If we are not careful, we could end up with people resorting straight to law if they want to make a political point. That is going to cost the universities a lot. In some cases, they will settle just to get rid of them.

Professor Layzell: That is why you would want the full internal and existing apparatus to be fully utilised before we go into that final stage.

Higher Education (Freedom of Speech) Bill (Fourth sitting)

Debate between Matt Western and Lord Beamish

Monday 13th September 2021 Public Bill Committees

[Matt Western]

[Mr Kevan Jones (North Durham) (Lab)]

Higher Education (Freedom of Speech) Bill (Second sitting)

Debate between Matt Western and Lord Beamish

Tuesday 7th September 2021 Public Bill Committees

[Matt Western]

Under the Register of Members’ Financial Interests, I declare that my wife works at a university. I am not sure if it is necessary to declare that, but I want to put it on the record for this session.

[Mr Kevan Jones (North Durham) (Lab)]

Chair, this morning it was said that hon. Members have to declare their interests every time they speak. My understanding, and that of the right hon. Member for South Holland and The Deepings (Sir John Hayes), was that as long as the interest is declared at the beginning of the session that should be enough. Have the rules changed or are the right hon. Member and I just being old fuddy-duddies?

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[Matt Western]

Q Thank you for joining us today, Ms Jamdar. One of the areas I want to explore with you is around the tort. There seem to be widespread concerns about what this will mean and the implications it will have for universities and student unions. In an article published in Times Higher Education in May 2021, you wrote that the

“introduction of the statutory tort will almost certainly involve universities in more legal action”.

Could you briefly expand on the consequences, both intended and unintended?

Smita Jamdar: As I understand it, the tort is designed to enable people who feel that their right to freedom of speech, as defined in the legislation, has been infringed to go to court and argue their cases. The reason why I fear that could have a number of consequences, not all of them intended, is that in order to issue a case before court you simply have to pay an issue fee, in most cases, write the particulars of claim and set it out, so you set out your case. It then locks both parties into a set of proceedings. Ultimately, you can cut those proceedings short, so you can apply to the court to have a case struck out, but that nevertheless involves a certain amount of time, expense and resource in dealing with the litigation.

In relation to the statutory tort, there is not any threshold level of harm that anyone has to show. Ultimately, for a remedy, any tort requires some form of damages, but that would not necessarily stop people from bringing claims simply to make the point. Especially where the threshold of harm is very small, it could be brought in the small claims court, where no costs are recoverable by either party. On one analysis, you would say that is at least a level playing field, but again it could mean that a few thousand pounds in every case could be spent getting rid of claims that are either very trivial or unmeritorious generally. That is the concern.

[Mr Kevan Jones]

Q You cover the issues of frivolous and vexatious, and even they will cost some money, but if you get individuals who are well financed this could lead to a lot of expense for the universities.

This morning, my right hon. Friend the Member for Hayes and Harlington (John McDonnell) raised the issue of Chinese students. We all—or I do and at least one other person in Committee does—know about the United Front activities of the Communist party on campuses throughout the UK. Sometimes they are intimidating students, and they are pushing an agenda—for example, on the Uyghurs in China—that is pro the Chinese regime. Under the Bill, I fear that that could be opened up, as my right hon. Friend raised this morning.

A group of students could on the face of it just be students, but they might have financing behind them that we and other people do not know about so that they could pursue a freedom of speech claim to push an agenda that might, for example, be in the interests of the Chinese Government. That would not only involve a lot of cost, but would clearly be financed by some very deep pockets, so it could lead not only to that agenda being pushed but to a lot of expense for the universities. Do you agree with that?

Smita Jamdar: The legislation obviously covers freedom of speech within the law, so as long as what these people were purporting to want to speak about was within the law—or at least arguably within the law, because obviously one of the things that you might wish to have the court adjudicate on is whether the speech was within the law—I cannot see anything that would stop that kind of funded litigation. Ultimately, you can try to seek clarification about where money has come from to fund litigation, but there are always ways of passing money through so that it comes from the pockets of the claimants in the first instance. So, yes, we would not necessarily know who was funding the litigation, or to what end. Ultimately, the question for the court to decide would be: was it an infringement of freedom of speech within the law?

[Matt Western]

Q To pursue this a little further, you and others have been talking about getting into a compensation culture—we might have the equivalent of ambulance chasers going around chasing, whether through social media or on campus. You are obviously very familiar with the legislation and I think you are the first lawyer we have had so far as a witness. Is it clear to you how this would work with the tort and how, when a complainant wishes to pursue some damages, that will work through the complex relationships between the three bodies involved? We will have the Office for Students, the Office of the Independent Adjudicator for Higher Education and the Charity Commission. That looks like a minefield and super-complex—a lawyer’s goldmine. What do you think?

Smita Jamdar: There is definitely a lot of complexity here about the different roles that these bodies will play and the different routes that somebody could go through to get compensation. The Charity Commission, for example, would not normally be involved in making decisions about compensation for individual complainants; it would be looking more at whether the body in question had complied with the charity law obligations. But the other three, under the model that we have seen in the Bill, could all be involved.

Without a great deal of clarity about the relative responsibilities or indeed the pecking order—there is a rule that you cannot go to the OIA, and I think under the Bill you could not use the OfS free speech complaints process without first exhausting the internal processes of the university to challenge the decision that you are unhappy about. However, there is no such restriction when you go to court. You are free to go to court when you feel that your rights have been infringed, rather than having to go through another internal process. That said, the courts tend to encourage people to utilise internal processes first, because it is a good way of managing court resources. Does that answer the question?

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[Mr Jones]

Q But its definition could be determined by who the Government appoint as director or by the advice that they are given at the time, so that is a highly political situation. It might be comfortable for the present Government who are in control at the moment, but if you had a Government at the other extreme who want to take a very different view, by being able to appoint an individual or make an intervention like that, they could define freedom of speech in a completely different way that you and I would completely disagree with.

Dr Harris: To a degree, I agree, but the director must enforce free speech within the law, and the director will have no power to say what the law is. If the director misdirects him or herself as to what the law says on free speech, it can be challenged in the courts—it would be an error of law.

On the question, I think that, ultimately, what will happen is that there will be definition and enforcement by the courts of those duties and rights created by the Bill. It is correct to say that there is a role for an administrative body, the OfS. That is a trade-off that it is often necessary to make. It is worth while to have a cheap, informal and quick form of adjudication. The idea that every dispute—especially for students—should be taken to court, is simply impractical. Even though there can be drawbacks with administrative adjudication, it is essentially a stopgap so not everything has to go to the courts. Ultimately, the free speech that we are talking about here is defined and enforced by the courts. It is free speech within the law. We should all be happy with the idea that free speech is a right enforced by the courts.

[Matt Western]

Q You say that this is a real game changer, this piece of legislation. According to the OfS, we have had fewer than five events cancelled in universities in the two years between 2018 and 2020. In your submission, something like less than one incident a month for the last five years has come to you. There is quite a mixture of cases and incidents that have been brought to your attention, including several WhatsApp messages from students on campus and so on. Are you not guilty of a bit of hyperbole to say that this is a real game changer? The universities need to work with the OfS to tighten up processes, adopt best practice and change individual legislation, as we discussed earlier today, as opposed to adopting the Bill.

Dr Harris: Every MP must decide for themselves how happy they are to turn a blind eye to infringement of a fundamental right and how happy you are to pay that political price.

Higher Education (Freedom of Speech) Bill (First sitting)

Debate between Matt Western and Lord Beamish

Tuesday 7th September 2021 Public Bill Committees

[Matt Western]

No, but we all tend to speak from personal experience because it is more direct and authentic. Do you not find, when institutions could improve, it is actually about some changes within, and that perhaps you do not need legislation to force it through? It is thought very widely that this is a sledgehammer to crack a nut.

Professor Stock: The problem is that unfortunately we do need legislation, because universities have not got on top of this. With the people I am talking to, and the stuff that I refer to in my written evidence, we are not talking just about deplatforming. I know there is a focus on public events and public speaking. There is a range of areas where speech is being suppressed or controlled, where junior academics are being put on vexatious complaints for expressing their perfectly legitimate academic views, and where people are being very cautious about what they teach because they want to avoid controversy.

If universities had been able to get on top of all of that, they would have done, I assume, but they have not. In some cases, they just deny the problem. This legislation says that there should be a positive duty to promote academic culture. That could be a very positive, forward-looking initiative; it does not have to be heavy-handed, although obviously it has the capacity to be punitive. But there is also the dimension of encouraging universities to examine what the value is of academic freedom, which is not a discussion that I see happening.

[Mr Kevan Jones (North Durham) (Lab)]

Q There is legislation already, in the Education Act. What you are saying is that that is not working. If I follow your argument, universities are not following that because what they want to do is to ensure that they have not got individuals like you or perhaps other academics who are going to put off students from being attracted to those universities, because of their views. To follow it to a logical conclusion, is not the ultimate thing that is going to happen this? If the only motivation behind it is that somehow they feel that if they allow you and others to express your different views—which I fully support, personally—that will put off students from going there, are they not going to just not employ people like you?

Professor Stock: I am not a lawyer, but I assume that there should be some discussion of how recruitment happens and—

Higher Education (Freedom of Speech) Bill (Second sitting)

Debate between Matt Western and Lord Beamish

Tuesday 7th September 2021 Public Bill Committees

[Matt Western]

[Mr Kevan Jones (North Durham) (Lab)]

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[Matt Western]

[Mr Kevan Jones]

[Matt Western]

--- Later in debate ---

[Matt Western]

[Mr Jones]

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[Mr Jones]

[Matt Western]

Higher Education (Freedom of Speech) Bill (First sitting)

Debate between Matt Western and Lord Beamish

Tuesday 7th September 2021 Public Bill Committees

[Matt Western]

[Mr Kevan Jones (North Durham) (Lab)]

Tax Avoidance and Evasion

Debate between Matt Western and Lord Beamish

Tuesday 25th February 2020 Commons Chamber

[Mr Kevan Jones]

Does my hon. Friend agree that it is long overdue that some of the big accountancy firms should be broken up? There is not really competition among these firms; there are cartels in some situations.

[Matt Western]

My right hon. Friend makes a very good point. With just those four businesses, they absolutely dominate the sector. I do fear that there is a cartel operating, and the sector should be broken up. I think that would be in everyone’s interests. Those firms—or certainly their UK arms—account, according to an HMRC report, for half of all known avoidance schemes. That is the scale of the problem.

This is coming at a massive cost—a loss to UK plc —that is estimated at between £35 billion and £90 billion. There is understandable public anger out there, because that money could be buying significant investments in our communities, whatever people may want to invest it in. That could be 40 new hospitals, two new aircraft carriers or 40 Typhoon jets—all for £35 billion, with some cash to spare. If the £90 billion takes their fancy, we could electrify the Chiltern line serving Warwick and Leamington, and then put money into free school meals for all. Instead, we have an attitude where we increasingly see flat regressive taxes, such as the rise in VAT in 2010 from 17.5% to 20% and the growing expansion of council tax, again hurting hard-pressed households.

Local Government Finance (England)

Debate between Matt Western and Lord Beamish

Monday 24th February 2020 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

The Secretary of State opened the debate by announcing that this is the best local government funding settlement for a decade. That would not take much beating when we consider what has happened over the past 10 years. In the previous debate, on police funding, I referred to the year-zero approach, because it is as though anything that happened before December 2019 was someone else’s fault and had nothing at all to do with this Government; as though they are a new Administration who are coming in to put everything right. But most of the Ministers now on the Front Bench voted for the austerity of the past 10 years, so it is with some chutzpah that they are now trying to convince us that they had nothing to do with it.

We also now have a key in-word, which we will hear a lot more of. The hon. Member for North West Durham (Mr Holden) mentioned it when he talked about “levelling up”. Well, it will take a hell of a lot of levelling up. I will come on to answer his points about Durham County Council in a minute, because he is clearly going to try to play dog-whistle politics, which does not surprise me at all. He welcomes this statement as though it means extra money for the county council. Yes, this settlement is for this year—it is a one-year settlement. I hope that when the council and the police commissioner put up the local government tax, he does not blame Durham County Council. To do that would be to abnegate his responsibilities, as he would be welcoming it in this place, but saying another thing in County Durham. I look forward to him supporting whatever difficult decision the police commissioner and Durham County Council have to make on the local council tax precept. No doubt, he will try to say something different locally.

This is a one-year settlement. We now have the so-called new fairer funding formula coming in, but we need to remind ourselves about what has gone on previously. Durham County Council has lost 40% of its budget in the past 10 years. That is £232 million. In the early days, when we had Eric Pickles as Secretary of State, this could all be done by cutting back on pot plants and getting rid of chief officers. Well, I am sorry, but I defy anybody who says that we can get 40% efficiencies out of an organisation and still deliver the same services, because we clearly cannot.

What we have had today is the Secretary of State saying that we will have a fairer funding settlement that respects need. That is not what the Government have been doing over the past 10 years. On every indication, the funding formula is seeing money being moved from areas of deprivation to areas of affluence. The National Audit Office has identified that. While Durham County Council has taken huge cuts, places such as Surrey and Wokingham have had increases in their core spending budget. We get to a ridiculous situation now where, if we look at 2019-20, core spending per dwelling for Durham is £1,727, whereas for Surrey it is £2,004. People might ask what difference it makes. It comes back to what we have heard for the past 10 years, which is not only that austerity is needed, but that, somehow, everywhere in the country is the same in terms of delivering services—whether in Surrey, in an inner-city metropolitan area or in County Durham. The two main drivers that are swallowing up most of the budget of counties such as Durham are adult social care and looked-after children.

[Matt Western (Warwick and Leamington) (Lab)]

My right hon. Friend is being very generous. He is making a terrific speech as usual. Does he agree that this issue, as he is describing it, is actually compounded by the deceit that, as part of the devolution of power and fiscal responsibility, these authorities would be able to retain more business rates, but the reality is that the Government do not want increases in business rates, and neither do businesses, because they cannot afford them. The reality is that those authorities will not be given those moneys in any event.

[Mr Jones]

I will come on to business rates in a minute. I will give an explanation as to why, for example, Durham County Council is doing what it is doing with its headquarters. I would argue that it is a response to Government policy.

If we look at adult social care in Durham, we see that there are 3,295 people in home care, 3,151 in residential care, 736 in supported living schemes, and another 763 receiving direct payments. The difference between Durham and places such as Surrey is that we have a higher proportion of people requiring council support. As my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) identified, we do not have a large package of support. We actually self-finance, and that makes a big difference in terms of the pressures on local councils.

The same is true if we consider looked-after children not just in Durham, but across the north-east. In Durham, we have 900 children in local authority care. As was said earlier, the number of looked-after children has increased by 20% in the last decade, but in the north-east it increased by 72% in the same period. Two councils in the north-east, Hartlepool Borough Council and Middlesbrough Council, have more than twice the national average number, and five times more looked-after children than Wokingham Borough Council. The new funding formula has to take that need into account. The idea that everywhere is the same is complete and utter nonsense.

The bigger debate, which has not really been had, is about the Government’s direction of travel over the past 10 years, which has been to reduce the amount of central Government funding to local authorities and to push the burden on to the local council tax base. Again, County Durham is at a disadvantage. More than 50% of our properties are in band A, so an increase of 1% in Durham raises very little compared to such an increase in more affluent areas with large numbers of higher-band properties. That will have to be taken into consideration. For true levelling up, there will have to be a complete reversal of what has happened over the past 10 years. If we get to a situation in which what a local authority requires is raised locally, councils such as mine will be at a huge disadvantage, certainly given the increase in the number of looked-after children and individuals in care in the area.