Covid-19: Funding for Local Authorities

Aaron Bell Excerpts

Tuesday 24th November 2020 Westminster Hall

[Aaron Bell (Newcastle-under-Lyme) (Con)]

Thank you very much, Mr Hollobone. It is a pleasure to serve under your chairmanship, especially with such kind strictures on the time limits. I pay tribute to the hon. Member for Bethnal Green and Bow (Rushanara Ali) for securing the debate, and to all Members who have spoken so far, all of whom clearly care very much about their communities. This debate should be conducted in a cross-party spirit, and I am sure that the Minister will respond in those terms at the end.

These are extraordinary circumstances. There has actually been an extraordinary response from central Government in terms of the amount of money going to councils, but there has, more than ever, been some extraordinary leadership in local councils. I mean not only the leadership of the councils but the people carrying out their jobs, as my hon. Friend the Member for Devizes (Danny Kruger) mentioned. Everybody on the frontline has shown leadership in responding to the awful circumstances we are in.

To give the view from Staffordshire, Newcastle-under-Lyme Borough Council—a district council—and Staffordshire County Council told me that, by and large, they have had adequate funding from central Government to make up their covid-related losses. That funding has been timely, which they really praised. The Government acted quickly and allowed them to plan ahead, although I recognise what my hon. Friend says about those 5 pm press conferences, which definitely necessitated some late nights. It would be helpful if that was not repeated.

Simon Tagg, leader of Newcastle-under-Lyme Borough Council, says that the Government have listened and given funding to cover the shortfall across council budgets on homelessness, business support and leisure services. That is hugely welcome. Staffordshire County Council has had two leaders during this time, Councillor Philip Atkins and Councillor Alan White, both fine public servants. They estimate that, all in, they have received around £83 million this year in various grants from central Government. They reckon they will have an overall overspend of about £2 million, partly due to delayed cost savings, in addition to some lost income from council tax and business rates.

My councils of course have some asks of the Minister, and it would be remiss of me not to mention them. A lot are about collection fund losses. The Government have promised to bring forward proposals to share collection fund losses where councils will not get as much council tax and business rates in. I have been asked to ask the Minister to ensure that the Government will honour that promise and bring that forward as soon as possible, so that those councils can have some certainty in the year ahead. Newcastle-under-Lyme Borough Council would like more funding to cover the cost of council tax support for people claiming benefits. It expects a big increase in that bill when furlough finishes. Staffordshire County Council highlights long-term concerns around social care and the overall funding quantum for local government. It is essential that they have certainty, so that they can do all they can to help the economy get back on its feet and, of course, to level up.

North Staffordshire is one of the principal targets of levelling up in this country. We have had a lot of support from the Ministry of Housing, Communities and Local Government. I look forward to our future high streets fund announcement and our town deal bid, both of which are coming soon. Councils need certainty about their underlying funding; otherwise, they may be forced to make cuts to the universal services that many people rely on.

I again thank the hon. Member for Bethnal Green and Bow for securing this debate. I thank everybody in Staffordshire, including the leadership, the chief executives—Martin Hamilton and John Henderson—and everybody who has done their part to get us through this pandemic. I look forward to the Minister responding to my points.