Local Government Finance (England)
Debate between Steve Reed and Jim Cunningham(8 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Reed
My hon. Friend is absolutely right, and I will pick up on those points later in my contribution. Returning to the settlement funding assessment, because increases elsewhere do not plug the gap that those cuts create, it will result in cuts to front-line services, including cuts to youth services, fixing potholes, cleaning the streets, emptying the bins, looking after parks, keeping the street lights on at night, Sure Start centres, libraries, museums and rural bus services. The Secretary of State has not protected any of those; he has sharpened the knife.
Mr Jim Cunningham (Coventry South) (Lab)
Councils such as Coventry will lose 60% of their income from grants over a 10-year period—that is £80 million—which will inflict unnecessary hardship. The Secretary of State talks about business rates, but it was a previous Conservative Government who changed those in the first place. He is now passing the buck of paying for the police and social care on to local authorities, and three or four years down the line, he will do what Ministers always do and come in and cap it.
Mr Reed
My hon. Friend is right, and devolving the blame for their cuts is part of what the Government are up to with this settlement.
Some funding for social care has been handed over to councils, which certainly sounds welcome. According to the Tory-led Local Government Association, however, the Government have handed over a £1 billion funding black hole. They have told councils to impose a 2% council tax rise every year for four years to plug that gap, but even that does not raise anywhere near enough to pay for the care that older people need. That increase raises the least money in the poorest areas that most need the funding. The Government have cut the funding then handed it over to councils to take the blame.
Elected Mayors and Local Government
Debate between Steve Reed and Jim CunninghamWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Mr Jim Cunningham
Many years ago, I used to chair the seven districts. For people who do not know what I mean by that, it was seven local authorities that worked together. If we had not been able to work in that way, we would not have had Hams Hall, because we had an issue about it with British Rail at the time. If it had not been developed, freight would have gone up north and no investment would have gone to the midlands. Birmingham airport was another area that we developed. The point I am trying to make is that we do not need an elected mayor to do things like that.
Mr Reed
My hon. Friend’s comments emphasise the fact that discretion over the model of governance should be in the hands of the local community and the local area affected, not in the hands of a Minister who takes such decisions centrally here in Whitehall. That is not just a Labour view. The cross-party Local Government Association, which is currently led by a Conservative, believes:
“People should be free to choose the appropriate model of governance for their community.”
In reality, however, the Government claim to be committed to devolution but insist on telling communities how they will be run and governed. There is a clear contradiction in that, which I hope that the Minister will resolve for us.