Andrew Gwynne
Main Page: Andrew Gwynne (Labour (Co-op) - Gorton and Denton)Local Government Finance (Tameside and Oldham)
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Angela Rayner
I thank my hon. Friend for illustrating what I am trying to portray. Some fantastic councils up and down the country are facing genuine difficulties.
Oldham Council, which is also within my constituency, has done even worse than Tameside Council. It has been forced to cut £200 million from its public services since 2010—the second-largest cut in Greater Manchester. Taken together, my two boroughs have already lost from their public services more than £300 million—that is, incidentally, the annual cost of running the royal household.
Across Greater Manchester, local councils are making almost £450 million of cuts, which comes after 15,000 jobs were lost from our town halls after the last round of budget reductions.
Andrew Gwynne (Denton and Reddish) (Lab)
I, too, welcome my hon. Friend as the Member of Parliament for Ashton-under-Lyne. Like my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), I served as a Tameside councillor before entering this place.
The situation is worse than the picture my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) is painting, because such reductions in council spending have an impact on wider public services. For example, the cut in adult social care budgets has had an enormous impact on the ability of the NHS in Greater Manchester to deliver quality health services.
Mr Jones
I will give way in a moment.
Through our reforms to the local government finance system, we have established a basis for a more self-reliant local government, and a sector that is less dependent on Whitehall and is instead increasingly confident in using the tools and incentives that we have provided to grow local economies.
Andrew Gwynne
The Minister talks about a fair funding settlement, but does he not appreciate that, because of their make-up, local authorities have different needs from and demands on services? Tameside and Oldham, for example, are grant-dependent because the council tax base is low and their ability to raise additional finance is therefore limited.
Mr Jones
I understand what the hon. Gentleman says. That is why the north-west—particularly the Oldham area—has greater spending power than many other parts of the country. However, he undersells his area’s potential to raise revenue locally, through additional council tax and business rate retention. Councils have a greater stake in stimulating local growth. Authorities throughout the country are benefiting from greater powers in this sense, including—