Local Government and Social Care Funding

Debate between Rishi Sunak and Andrew Gwynne

Wednesday 24th April 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

How can he disagree with that?

[Andrew Gwynne]

I can disagree with the hon. Lady because, for a start, funding for children’s services has increased in Essex. She should perhaps check that. If she is saying there is not a crisis in children’s services, she is going against all the evidence put forward by the Conservative-controlled Local Government Association.

Oral Answers to Questions

Debate between Rishi Sunak and Andrew Gwynne

Monday 28th January 2019 Commons Chamber

[Rishi Sunak]

This is a consultation, and I would be happy to receive informed opinion from the hon. Gentleman, the Chair of the Select Committee. I would point out, however, that the funding formula covers broadly universal services used by the majority, if not all, of a council’s residents. As we disclosed transparently in the consultation document, population is by far and away the most important factor driving the need for those services. Deprivation was shown to account for less than 4% of the variation in spend in the area.

[Andrew Gwynne (Denton and Reddish) (Lab)]

South Cambridgeshire District Council, deprivation rank 316, has seen a spending power cut of just £21.85 per household this year compared to 2010. Knowsley Council, deprivation rank two, has seen a spending power cut of £1,057 per household, while Hackney, deprivation rank 11, has seen the largest cuts in spending power of £1,406 per household. How is that fair?

[Rishi Sunak]

I have some figures, too. Perhaps the hon. Gentleman would like to take account of the fact that the spending power per household of the most deprived authorities is today 23% higher than those that are the least deprived.

[Andrew Gwynne]

There are lies, damned lies and statistics. The Minister cannot get away from the fact that poorer areas are poorer on his watch and that health inequalities are widening on his watch. The situation is set to get worse as he seeks to continue with his reverse redistribution, shifting funds from the poorest communities to some of the wealthiest. Will he now agree, in the interests of transparency, to Labour’s call for the National Audit Office to independently scrutinise the fairness of his so-called fair funding review before it is implemented?

[Rishi Sunak]

I do not think that I heard a rebuttal of the statistics I outlined. It is clear that the Government are supporting people in every part of the country. We are providing £1 billion of extra funding to deliver social services and a real-terms increase in funding for local government in the next coming year.

Oral Answers to Questions

Debate between Rishi Sunak and Andrew Gwynne

Monday 5th November 2018 Commons Chamber

[Rishi Sunak]

May I join my hon. Friend in paying tribute to all the local councillors in Northamptonshire, who are working very constructively together through a difficult situation to ensure that their residents benefit at the end of the process? I can tell him that reasonably shortly we will be issuing details about the next step of that process. As he rightly points out, as part of that the Government may have the ability to delay the elections next year, should that be requested by the authorities and make sense in the context of the new unitisation proposals.

[Andrew Gwynne (Denton and Reddish) (Lab)]

This Government’s record on local government is clear: since 2010, the Department’s budget has fallen by at least £13 billion; and, by 2020, the revenue support grant will be cut by 80%—£8 billion—putting more pressure on to council tax, which is an unequal levy. Northamptonshire has, in effect, gone bust, with the media reporting that Surrey, East Sussex and Lancashire are next in line. Services are under pressure—cut, slashed or stopped altogether—and councils are at breaking point. The Public Accounts Committee asked Ministers to publish a definition of “financial sustainability” for councils, methodology for assessing authorities at financial risk, and projections for spending and demand in service areas, so why have they refused? This is common sense; what has the Minister got to hide?

[Rishi Sunak]

The hon. Gentleman has a job to do, and I appreciate that—it is his job to put pressure on us—but I would have thought that this week, after all the question sessions we have had, he would have joined me in welcoming last week’s Budget, which includes £1 billion extra for local government across two years.

Oral Answers to Questions

Debate between Rishi Sunak and Andrew Gwynne

Monday 23rd July 2018 Commons Chamber

[Rishi Sunak]

I am pleased to tell the right hon. Gentleman that the Government will be launching their consultation on negative RSG very shortly, and I look forward to his contribution.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Last week the Municipal Journal reported the Minister as saying that councils will be unhappy with the outcome of the fair funding review, so can he clarify just how unfair his review is likely to be and which types of council will be hardest hit?

[Rishi Sunak]

What I can confirm is that the fair funding review will be a bottom-up fresh look at how we fund local government in this country. It is long overdue, as the current formula is 10 years out of date with over 120 different indicators. It is right that that formula is fair, transparent and objective, and I am sure all councils will have a fair crack at persuading me of their case.

[Mr Speaker]

I am very glad that the Minister is in such a good mood; he really is a very cheery, upbeat fellow who positively exudes optimism about all things and all around him. We are delighted to see him.

[Andrew Gwynne]

But it will not wash, Mr Speaker. The Tory-led Local Government Association is warning that the funding gap for councils is now due to grow to £8 billion and the Public Accounts Committee has damned the financial capability of the Ministry to sort out this mess. With Northamptonshire the first broken shire and other local authorities of all types teetering on the cliff edge, when, rather than managing down expectations about fair funding, is the Minister going to stand up for the sector and demand the resources our public services so desperately need?

[Rishi Sunak]

If the hon. Gentleman had been at the local government conference just the other week he would have heard my right hon. Friend the Secretary of State describe to the sector exactly what this Government are doing to support them. We acknowledge the pressures on local government over the past few years; they have done a commendable job of maintaining high-quality public services in a difficult environment, and we will ensure that they continue to get the backing they need from this Government to deliver for all our local communities.

Oral Answers to Questions

Debate between Rishi Sunak and Andrew Gwynne

Monday 18th June 2018 Commons Chamber

[Rishi Sunak]

This Government want to guarantee the security and dignity of people in old age and are absolutely committed to providing a long-term sustainable settlement on social care, on which the hon. Lady will know the Health Secretary is working. He will bring forward plans in due course.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Some 1.2 million older people in England are living with unmet care needs, according to Age UK. More than 400,000 fewer people are receiving publicly funded social care than in 2010. Council spending on adult social care fell by 10% in real terms between 2010 and 2015. A miserly £150 million in funding was announced for 2018-19 in the local government finance settlement, and now we hear that there is no funding for social care in yesterday’s NHS announcement. With social care in crisis, putting pressure on the NHS and sending councils across England towards bankruptcy, when is this Minister going to do his job and secure the resources that our councils need to give the elderly the dignity they so desperately deserve?

[Rishi Sunak]

This Government are already responding to the pressures in social care, which is why we announced £2 billion in last year’s Budget for local authorities up and down the country. That represents a real-terms increase every year from last year to next year in social care spending, and we are seeing it translate into action on the ground, with a 40% reduction in social care delayed transfers of care just last month.

Public Service Delivery: Northamptonshire

Debate between Rishi Sunak and Andrew Gwynne

Tuesday 6th February 2018 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for his questions. I know that this is something that he is thinking about deeply on behalf of his constituents. Let me take in turn the points that he raised. With regard to the fire service, he will hopefully be aware that the Home Office is considering that application and will make its decision in due course. On his points about the financial situation, he is right to say that there are a range of issues that were highlighted in both the independent audit reports and the LGA peer review, which, as he rightly pointed out, cited both culture and governance issues at the council.

On the process from here, Ministers do not have direct contact with the inspector—he is rightly independent—so it is not possible to direct him to report earlier. I would point out that the 16 March deadline means that this inspection will conclude in much less time than was allowed for the Tower Hamlets and Rotherham inspections, which, hopefully, should give my hon. Friend some comfort regarding a rapid resolution.

Finally, if the council meeting is not successful, the finance director has the option of issuing a further section 114 notice. However, it is important to note that he, as the statutory official, has the flexibility today and in the future to authorise any payments that he sees fit and for which there is a sensible case, including, as he has guaranteed, to safeguard vulnerable people. At the point at which the council is ready to make formal representations to my Department for anything that it might require, we stand ready to engage with it.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Mr Speaker, thank you for granting this urgent question. I welcome the Minister to the Dispatch Box; it is just a pity that it is not the Secretary of State.

There have been deeply troubling reports for a number of months that Northamptonshire County Council has been failing in its duty to the people of Northamptonshire and to the public sector workers who provide valuable services to local people. As has been mentioned, the Local Government Association conducted a financial peer review back in September. That report had three key findings. First, it found that time was

“running out for Northamptonshire County Council”.

Secondly, it stated that the council was

“heading towards major financial problems”,

and, thirdly, it said:

“There was a sense that the scale of the financial challenge for the Council was just too great for it to overcome itself and that the government would have to bail it out.”

Since then, we have had more reports that the council was failing in its duty to the people of Northamptonshire, and residents will now pay the price for its negligence.

The failure of this Tory-run council is the result of a perfect storm of chronic underfunding and catastrophic Tory mismanagement, yet when a Government have taken £5.8 billion out of local government finance, when everyone is saying that social care is on its knees and when children’s services need another £2 billion, not only does the Secretary of State not turn up to reply to an urgent question, but he sticks his head in the sand and fails to give local government the money it needs to provide safe, decent, quality services. This situation shows, yet again, that we cannot push the cost of local government on to council tax payers, because that just does not raise enough money locally. The Secretary of State knows that, the Minister knows that, the Treasury knows that and the local government sector knows that, so when will Ministers stand up to the Chancellor and demand the money that local government needs?

The Local Government Chronicle suggests that at least 10 other local authorities are preparing to issue section 114 notices. The sector will look very closely at how the Minister treats Northamptonshire, so what contingency arrangements does he have in place should other authorities fall over the cliff edge? What guarantees can he give from the Dispatch Box that services in Northamptonshire and across the country will be protected by his Department? Will he join Sally Keeble, Gareth Eales and Beth Miller—Labour’s candidates in Northamptonshire—in calling for the appointment of commissioners to fix this mess?

It was announced last night on Twitter that the Secretary of State was in the process of politically fixing the financial mess he has made for his Tory Back-Bench friends. Two years ago, the transitional grant scheme gave out an additional £3 million of funding, but 80% of that went to Conservative-controlled councils, 70% of which were county councils. By contrast, metropolitan districts got only an extra 2%, despite being the hardest hit. In the light of that, we will be watching the Minister and his Department very carefully, because all councils are financially stretched and all councils deserve fairness.

[Rishi Sunak]

I thank the hon. Gentleman for welcoming me—albeit lukewarmly—to the Dispatch Box. He talks about the Secretary of State, but it is this Secretary of State who has taken action with regard to Northamptonshire. It was this Secretary of State who, in response to the negative opinions of the external auditors and the LGA peer review, decided to commission an independent inspection at the end of last year. That is exactly what responsible government looks like, and the Secretary of State should be commended for taking swift action.

The hon. Gentleman asked me to prejudge the outcome of the inspection, but it would be absolutely inappropriate and unfair to the council for me to do so. When the Government receive the results of the independent inspection, we will of course carefully consider its findings, but it would be wrong to draw conclusions about those findings today, as he suggests we do.

The hon. Gentleman mentioned finances. We will, of course, be discussing finances tomorrow. This Government have backed local authorities with an historic four-year funding deal that provides more than £200 billion and a real-terms increase in spending for next year and the year after. Everything is always about money for the Labour party, but the hon. Gentleman would do well to listen to the words of the chief executive officer of the Chartered Institute of Public Finance and Accountancy, who said:

“Whilst Northamptonshire has had a difficult context within which to balance its budget…other councils in a similar situation have successfully managed their budgets”.

As my hon. Friend the Member for Kettering (Mr Hollobone) pointed out, the issue is one of governance and culture. Those are the points that were highlighted and that the inspector will be considering.