Oral Answers to Questions
Andrew Gwynne Excerpts(5 years, 6 months ago)
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James Brokenshire
This year’s funding settlement offers local councils up and down the country a real-terms increase in core funding. Equally, the additional £650 million for social care is intended to address and respond to some of the issues around those services. However, she is right about the need for further reform in the longer term, and that is what we as a Government are determined to deliver.
Andrew Gwynne (Denton and Reddish) (Lab)
But back in the real world, 763 youth centres have closed, over 700 libraries have closed, Sure Start and early years services have been cut in half, and one in five children are now growing up in poverty. The legacy of this Government is a decade of neglect as local government takes the biggest hit at the altar of Tory austerity. So what is the Secretary of State most proud of: an entire sector at breaking point, or the increased inequality that his savage cuts have created?
James Brokenshire
There are now more children’s centres than at any time prior to 2008, and quality has also improved. In 2010, 68% of early years providers were good or outstanding. Today, the proportion is 95%. As for outcomes, 52% of children left reception with a good level of development in 2013. Today, the proportion is 72%. I know that local government faces challenges, which is why I have argued the case for the settlement that we have this year, but the picture painted by the hon. Gentleman is designed to inflame rather than to reflect the reforms made by this Government and the positive improvements that have been delivered.
Local Government and Social Care Funding
Andrew Gwynne Excerpts(5 years, 7 months ago)
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Andrew Gwynne (Denton and Reddish) (Lab)
I beg to move,
That this House notes that despite the Prime Minister announcing that austerity is over, local authorities’ spending power per household is on course to fall by an average of 23 per cent by 2020, and that nine of the 10 most deprived council areas in this country have seen reductions that are almost three times the average of any other council under this Government; recognises that this has resulted in social care budgets in England losing £7 billion; further notes that at the last General Election Labour committed to a fully costed plan to invest an additional £8 billion in social care over this Parliament; and calls on the Government to ensure that local authorities and social care are properly and sustainably funded.
If I may, I seek the indulgence of the House to briefly place on record, as shadow Communities Secretary, my utter shock and revulsion at the recent terrorist atrocities, both in Northern Ireland and in Sri Lanka, over the Easter break. We send our condolences to the families affected and to their communities. Coming so soon after the terrible events in Christchurch, New Zealand, just before Easter, they serve as a bleak reminder of how fragile our human rights and freedoms are, and how we must redouble our efforts in this place and outside to hold our communities together.
Sir Peter Bottomley (Worthing West) (Con)
The whole House will be grateful for the way the hon. Gentleman has introduced the debate and for those sentiments. Does he agree that people do such things for publicity and public reaction, and that we should take care to ensure that our publicity and our public reaction confronts and confounds their aims, so that what they do will be in vain, even though it has taken a terrible toll on those directly affected?
Andrew Gwynne
The hon. Gentleman is absolutely right. We should stand firm against terrorist atrocities wherever they are perpetrated. We should stand strong as a community, both in the United Kingdom and in the global community, against such acts of terror. We should call them out wherever they take place.
I welcome the opportunity to raise the important matter of local government funding in an Opposition day debate, especially considering how scarce the opportunities are for the Opposition to raise matters in such debates. I pay tribute to the shadow Leader of the House, my hon. Friend the Member for Walsall South (Valerie Vaz), whose dogged pursuit of that issue has allowed us to debate this important matter today.
In this place our discussion has been dominated by Brexit, but across the country our local councils, and the local services people rely on, are straining at the seams. I pay tribute to councillors of all political persuasions and none for the work they do in serving their communities. I pay tribute to the council officers and dedicated public servants who deliver neighbourhood and care services on the frontline. Years of uncertainty and unfair funding have created a quiet crisis that is now impossible to ignore. Under this Government, the facts speak for themselves: local authorities have faced a reduction to core funding of nearly £16 billion since 2010. That means that councils will have lost 60p out of every £1 that the previous Labour Government provided to spend on local services.
When the Prime Minister entered Downing Street, she promised to build a country that works for everyone, and she then promised an end to austerity. As her time in office probably comes to an end, we are able to reflect on both of those promises. Like in many areas of her leadership, I am sure we will all find that in both those areas she has been sorely lacking.
Diana Johnson (Kingston upon Hull North) (Lab)
As usual, my hon. Friend is making a very clear statement about the situation local government finds itself in today. My council is one of the 10 councils to have suffered the heaviest cuts, yet I represent a constituency and a city that is one of the most disadvantaged in the country. It is clear that the decisions that were made about where the cuts should fall have meant that they have been put on the shoulders of the poorest and the most vulnerable, not the richest in society.
Andrew Gwynne
My hon. Friend is absolutely right. She champions the cause of the communities of Kingston upon Hull. It is one of the most deprived local authorities in England, yet it is one of the areas that have received the heaviest cuts to their spending power since 2010. That was a political choice, and one that has decimated many communities, including the one she represents, across England.
Ms Karen Buck (Westminster North) (Lab)
I am sure my hon. Friend will come on to this argument, but does he agree that cuts to essential local government services in many areas inevitably lead to additional expenditure elsewhere? I think particularly of the decimation of youth services and early years prevention, which has undoubtedly contributed to the extra stress and extreme youth violence on our streets.
Andrew Gwynne
My hon. Friend is absolutely right. We used to have something called Total Place, which was all the public sector bodies working together towards a single strategy for a local area. What we have seen as a consequence of the austerity since 2010 is a complete breakdown of that collaborative working. It is worse than that, however, because rather than public bodies working together collaboratively, pooling resources and getting the best possible levels of services for communities, we have seen cost-shunting. For the sake of saving money on youth services, we are seeing a rise in crime that is pushing up costs for the police. Because of the cuts to police budgets, those costs are shunted on to other public bodies. That is not a common-sense approach to dealing with people’s needs and services, to building stronger communities or to spending public money wisely.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
On cost-shunting, just this morning we heard from representatives of families with children with special educational needs and disabilities. They were talking about their needs not being met through the education budget, the high needs block from local government or the health needs budget, because each is trying to get the other to pay the bill. Children with special needs and disabilities are falling through the gap and remaining unsupported.
Andrew Gwynne
My hon. Friend is absolutely right. There are too many instances across the public sector where cost-shunting is resulting in precisely what my hon. Friend says: vulnerable people falling through gaps that should not exist. I think that in their heart of hearts, Conservative Members, who clearly deal with casework that is similar to ours, will know that that is happening in their areas too.
Andrew Gwynne
If the hon. Gentleman is going to apologise for the cuts he has forced on our local communities, I will give way to him.
James Cartlidge
Very kind of the hon. Gentleman. He was referring to what has happened since 2010. Let us just remind ourselves that the 2010 Labour manifesto said that certain areas would be prioritised and protected. Will he remind us whether that included local government?
Andrew Gwynne
I remind the hon. Gentleman that the 2017 Labour manifesto said that we would put money back into our public services, something that he has failed to do in the almost three years since that general election.
Rachael Maskell (York Central) (Lab/Co-op)
My hon. Friend is making an incredibly pertinent speech. Does he not agree that it is completely perverse that public health budgets in York under the Tory-Liberal Democrat council have been slashed, when the NHS 10-year plan says we have to invest in public health?
Andrew Gwynne
It shows precisely the short-sighted way that the Government have approached funding local government. The fact that they passed on public health budgets to local government was, I think, a good move. It was one of the few things in the Lansley Act—the Health and Social Care Act 2012—that I thought was good, because it took back to local councils precisely what they were invented to tackle, which is to improve the health and wellbeing of the citizen. Of course, many councils started off their lives 150 or so years ago as local boards of health. Having that focus on public health and on health and wellbeing is absolutely right, but we cannot do that while cutting those budgets. That is the scandal: the areas that have seen the biggest cuts to their spending power, the areas that have seen the biggest cuts to the revenue support grant, and the areas that have seen the biggest cuts to the public health grant are the ones that need that resource the most.
Toby Perkins (Chesterfield) (Lab)
Let me make a point that neatly sums up what my hon. Friend is talking about. In Chesterfield, we have had a reduction of 43.2%. I took the time to look at the reduction in the Minister’s constituency and it is only 12%. That is not a difference of just a couple of per cent. It is three and a half times more in my constituency.
Andrew Gwynne
As my hon. Friend will hear as I develop my argument, that is not just a one-off. It is happening across England and it is unfair. The Tories do not get that blatant unfairness, because they have not seen the same levels of cuts in many of their areas that we have seen, yet the impact that has had on the communities we represent cannot be expressed loudly enough.
Andrew Gwynne
I give way to my hon. Friend, who will express loudly the cuts to her area.
Gloria De Piero
Let me take my hon. Friend to Nottinghamshire, where spending on adult social care is now £33 million lower than it was under Labour. That is £71 lower per head, as need is increasing. Is it not always the case under this Government that vulnerable people are paying the price?
Andrew Gwynne
I will give way to the right hon. Gentleman in a second, if I can answer my hon. Friend the Member for Ashfield (Gloria De Piero) first. It is worse than that, because those are the headline figures. We know that that local authority will have shifted money that was allocated to neighbourhood services to prop up the people-based services of adult and children’s social care, so although social care has been cut in real terms, it would be far, far worse were it not for neighbourhood services bailing out the gaps.
Mr Dunne
The hon. Gentleman is being generous in giving way. He talks about unfairness. Does he not recognise that it was under the previous Labour Government, in which he served, that the unfairness was introduced through the funding formula allocations, which shifted resources from local government in shire counties into metropolitan areas such as the one he represents?
Andrew Gwynne
The right hon. Gentleman has made the case for me. Let me dumb it down for him—I do not wish to appear condescending, but it really is as simple as this: there has always been a recognition by Governments of all colours that not every area has the same baseline. Some areas have greater need and often those areas have less of an ability to raise income locally. Because of that, there has been a mechanism, or a formula—for example, whether that was the rate support grant that became the revenue support grant—to ensure that resources from the centre followed need. What we have seen under his Government is a 60% cut to the revenue support grant. Sixty pence in every £1 for the two councils in my constituency, Stockport and Tameside, is a lot of money. A 60% cut to a very small revenue support grant is different—a number of Conservative Members’ councils have only small revenue support grants, or no revenue support grants in some cases. Sixty per cent. of nothing is nothing and that is the unfairness. A 60% cut to my area cannot be filled in by council tax rises, so it means rises in council tax for poorer services. Cuts are cuts—it is as simple as that.
John Redwood (Wokingham) (Con)
My area is one that got a really bad deal under past Governments and is still getting a bad deal. Let me build a bit of cross-party support. It is obvious that the Government have to find more money for social care for future year budgets, and it needs to go to my area and some areas represented by Opposition Members. It needs to be done fairly, but what is Labour’s current thinking on how much individuals and families should contribute, because in social care, one of the big issues is how much of the family asset and income is at risk? Does it have any new thinking on that?
Andrew Gwynne
Of course, individuals and families are taking the hit from all the cuts, and they are having to step in.
Andrew Gwynne
Let me answer the right hon. Member for Wokingham (John Redwood) first. We have to have a sensible discussion about how we are going to fund social care. Yes, it is about money, and we have pledged to ensure that there is £8 billion for social care—that was in Labour’s manifesto in the 2017 general election—and we need to make sure that that commitment remains in our future manifesto and is updated, because it needs that immediate cash injection to start with. However, we also need to look very seriously at how we provide adult social care. I really do wish that we could try to break down some of the politicking that has gone on for far too long—[Interruption.] Members can heckle, but it is a fact that before the 2010 general election, Andy Burnham, the then Health Secretary, sat down with the Liberal Democrat health spokesperson and the Conservative health spokesperson to try to work out a way forward. We went into that 2010 general election with poster boards about Labour’s “death tax”. That serves nobody. We need to make sure that we will have something that is sustainable for the long term, and I hope that we can genuinely get to a place where we can do that and talk about how we fund adult social care and children’s services going forward.
Several hon. Members rose—
Andrew Gwynne
I will give way to my hon. Friend the Member for West Ham (Lyn Brown) and then I need to make progress.
Lyn Brown (West Ham) (Lab)
I am grateful that my hon. Friend has mentioned children’s services. Clearly, the overspend on children’s services has hit a new high of £800 million—and of £12 million in Newham alone last year—and it is calculated that this funding gap will get to £2 billion by 2020. Is it not a complete and utter nonsense, and unsustainable for councils, to be told that they should be using what little reserves they still have to keep safe our very vulnerable children?
Andrew Gwynne
My hon. Friend is absolutely right. Politics is a question of priorities. I often remember the 2017 Budget, when the Government put forward measures to cut the bank levy by £5 billion. We tabled an amendment to the Budget proposing that £2 billion of that same money should go to fully funding children’s services, because we see precisely the cost-shunting that I talked about earlier with children’s services. It is frankly scandalous that vulnerable children and families are not able to access the support that they need.
Damian Green (Ashford) (Con)
The hon. Gentleman is being generous in giving way. I say this, again, in the spirit of co-operation across the Chamber. He makes the point about adult social care. At whatever level it is funded, he and others have pointed out the unfairnesses between different parts of the country because it is funded through local provision. Has he considered, or would he consider, going back to a system where the money is provided and distributed nationally rather than locally, so that this particular problem will be taken off the backs of local government?
Andrew Gwynne
Of course, I would be very happy to look at any suggestion. My hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) leads on social care issues for the Labour Front-Bench team, but the fundamental issue is that the money has to come from somewhere and some of that has to be centrally provided. We have set out how some extra resources can be put forward for social care.
Several hon. Members rose—
Andrew Gwynne
I will give way later on, but I want to make some progress.
The Prime Minister has said that austerity has ended—she said it in her conference speech last October—but instead of an end to austerity, in January we saw a local government finance settlement that once again cut even deeper into council budgets.
Andrew Gwynne
The Minister says it went up, but actually it confirmed what many of us feared, because under this Government there will never be an end to the pain of austerity. Nothing has changed. Let’s bust this myth. This year’s funding package, while it offered an increase in spending power next year for local government, came with a £1.3 billion extra cut from central Government funding to the revenue support grant. An uplift in spending power has been paid for by local people through increased council tax. That is not fiscal devolution; it is another attempt by this Government to shift the burden on to local taxpayers and to devolve the blame for these decisions to councillors of all political persuasions, including Conservative councillors.
Areas such as the one I represent cannot bring in anything like the resources they need to meet the growing demand for social care and our neighbourhood services through local council tax increases alone. This has left areas with the greatest need unable to mitigate the cuts imposed by the Government and residents paying more in council tax for services to be stripped back even further.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
My right hon. Friend the Member for Ludlow (Mr Dunne) made the point that the last Labour Government shifted money from the shire counties to the metropolitan areas. The shadow Secretary of State described them as areas of increased need, but does he recognise that in rural areas such as Lincolnshire, where my constituency is, services cost more to deliver because of the geography?
Andrew Gwynne
The hon. Lady makes the case that in rural areas there are greater costs to providing services. In some cases, that is correct, but it is a minority of cases. All the evidence, including in a report commissioned by the Secretary of State’s Department, shows that the opposite is actually true. I do not want to get into an argument with the hon. Lady about how we should cut the cake. The cake is shrinking. We need to grow a bigger cake so that we can share out the slices more fairly. As we continue to shrink the cake, all we do is pit her area against my area and her area’s needs against those of the area I represent.
Ellie Reeves (Lewisham West and Penge) (Lab)
Lewisham Council has had to propose a 2% precept to fund the widening gap in adult social care, yet Lewisham is among the 20% most deprived boroughs. Does my hon. Friend agree that rather than asking some of the poorest to pay more, we need proper funding from central Government for essential adult social care?
Andrew Gwynne
My hon. Friend is absolutely right. We need to grow that cake and the distribution of resources has to follow need. If we are serious about tackling health inequalities, if we genuinely want a fairer, more equal country, if we want to narrow the gap in life expectancy between the richest and poorest, which sadly is widening, we will not do it by cutting resources and services in the areas that need them the most.
Jack Dromey (Birmingham, Erdington) (Lab)
My hon. Friend is making a powerful case. A man who gets on the train at Birmingham New Street and gets off in Erdington, either at Gravelly Hill station or Erdington station, is likely to live seven years less than one who continues out into the leafy shires of Four Oaks. Birmingham City Council is the sixth most deprived in the whole country, yet it suffered the biggest cut in local government history—of almost £700 million—with another £80 million to come. Does he agree that what is grotesque about the treatment of a great city such as Birmingham is not just the scale of the cuts—including 12,000 staff gone from the city council—but the unfairness compared with the treatment of some of the leafy shires? Birmingham is high need but is being treated as a low priority.
Andrew Gwynne
I absolutely agree with my hon. Friend. The treatment of the great city of Birmingham has been appalling. The people of Birmingham deserve the resources they need to have decent public services. He has been a feisty champion of the needs of the people of his constituency and that great city and will continue to make that case.
Steve McCabe
If ever there has been a city subject to close Government scrutiny it is Birmingham. For five years, it has been subject to the Government’s improvement panel, so the Secretary of State knows the financial situation in Birmingham inside out. How does he justify forcing up the council tax in a city where 42% of the children are in poverty?
Andrew Gwynne
Absolutely. I will leave it to the Secretary of State to answer that, because I think that Birmingham has been dealt a bad set of cards by this Government.
It is not just Birmingham. Researchers from Cambridge University have exposed the uneven impact of the Government’s funding of local government. They have found that since 2010 changes in local authority spending power have ranged from a drop of 46% to a fall of a mere 1.6%. When we compare these reductions to the indices of deprivation, we see that more deprived areas have been forced to undergo bigger cuts in service spending, with smaller spending cuts in the least deprived areas. Nine of the 10 most deprived councils have seen cuts three times the national average.
These findings are backed by the Institute for Fiscal Studies, which also suggests that since 2016 the most well-off councils have actually seen an increase of 2.8% to their spending power, while the poorest areas have seen very little growth, despite having faced the largest pressures on their services.
Naz Shah (Bradford West) (Lab)
Does the shadow Secretary of State agree that the fact that eight of the 10 councils receiving the largest cuts are Labour-controlled while eight of the 10 receiving the lowest cuts are Conservative-controlled reinforces the need for this Opposition day debate?
Andrew Gwynne
Absolutely. We have to highlight the unfairness. We have to keep on until the Government wake up, smell the coffee and understand the damage they are doing to the fabric of so many communities in England through cutting our local neighbourhood services and depriving people-based services, such as adult social care and children’s services, of the resources they need.
Vicky Ford (Chelmsford) (Con)
Essex County Council is the second largest provider of children’s services by head of population. It has gone from being a failed children’s service in 2010 to now being ranked outstanding by Ofsted, despite there being less money going into the service, but because of a focus on early intervention and partnership working. Does the hon. Gentleman agree that what makes a difference is not just funding for our services but how the money is used?
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.
Conor McGinn (St Helens North) (Lab)
I thank my neighbour in the north-west region for giving way. He is making an incredibly impassioned and very pertinent speech. Will he join me in praising Labour-run St Helens Council for protecting services through an integrated St Helens Cares model and the creation of a people’s board, but does he agree that even an innovative council that puts its residents first cannot possibly mitigate the funding cuts of 71% that St Helens Council has suffered since 2010? That is simply not sustainable.
Andrew Gwynne
My hon. Friend is absolutely right. I pay tribute to Labour councillors like those in his constituency who are making incredibly difficult decisions. They are the last line of defence for many of our communities, and they are doing what they can, but with both hands tied behind their backs by a Government who simply do not understand the basic economics of the areas that we represent.
Andrew Gwynne
I will give way shortly, but I want to deal briefly with the issue of social care before I begin my concluding remarks.
The largest of the pressures on services remains the pressure on adult and children’s social care. According to the Local Government Association, adult social care services face a £1.5 billion funding gap next year, and £2 billion is needed for children’s services.
Given that the Cabinet are too interested in internal machinations, and given the absence of any leadership from the Prime Minister, we have yet to see the much promised social care Green Paper. In fact, this year’s April Fool revealed himself to be the Health Secretary after he missed his own new deadline of 1 April for the Green Paper—but no one was laughing, because that was the fifth missed deadline, following the summer of 2017, the end of 2017, the summer of 2018, and the autumn of 2018. Despite those delays, it seems that little progress has been made.
There is so much concern in the sector that last month 15 key organisations—including the LGA, the Society of Local Authority Chief Executives and Senior Managers, and NHS organisations and charities—were forced to write to the Government expressing their concern that Brexit was becoming a distraction from any action to deal with the real crisis that is affecting the services on which people rely.
Mr Betts
There are clearly differences between the cuts made in different authorities, but there is a collective view in local government about the crisis in social care. When Councillor Paul Carter, chair of the County Councils Network and leader of Kent County Council, gave evidence to our Committee during our last inquiry into adult social care, he simply said, “We are approaching a cliff edge.” It is possible that some councils will not immediately follow Northamptonshire over that cliff edge, but it will not be long before they do unless there is a fundamental change in the funding of social care in this country.
Andrew Gwynne
My hon. Friend is absolutely right. Let me say to the Secretary of State that if he will not listen to the Chair of the Committee, he should listen to the leaders of his party’s own councils, who are saying precisely the same. There is a cliff edge, and no action that the Government have taken so far has done anything to remove it. It may have pulled a few councils back and given them a few years before they topple over, but unless we fundamentally change the Government’s approach to social care services, we will not be able to solve the crisis in local government.
For the first time in England, we have seen a standard £2,000 tax bill introduced by a Conservative council. We have also seen the costs of the failures of this Tory Government. For instance, the cost of the failure of Tory-controlled Northamptonshire County Council has been pushed on to local people because the Secretary of State allowed it to raise its tax above normal limits as it grapples with bankruptcy. Local people are paying the price of Tory mismanagement: that is what happens when the Tories do not fund local government and are in charge of the town hall.
Austerity is not over, but across the country Labour councils and councillors are showing that it does not have to be this way. Under the shadow of the present Government, Labour councillors are innovating, standing up against austerity, and protecting local services. They are the torch bearers for the new politics that we will see with the next Labour Government. On 2 May, there will be a clear choice: continued austerity with the Tories, or proper investment, fairness and a real change, with Labour councils making a real difference to the communities they represent.
We need a Labour Government because we need a Government who are committed to funding children’s services, funding adult services, funding neighbourhood services, rebuilding our communities from the grass roots up, putting pride back into civic professions, and encouraging our communities to grow and prosper. We will rebuild this country, for the many and not the few. I commend the motion to the House.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
First, I would like to pay tribute to the fabulous work of the council staff in my area and the local councillors of the Conservative party, independents and others, who work so hard to deliver excellent services for our community.
My right hon. Friend the Member for Ludlow (Mr Dunne) made the point that the previous Labour Government moved funding from shire constituencies to metropolitan areas. As a resident of both South Kesteven and Westminster, I thought it would be useful to illustrate the difference between the two. In South Kesteven District Council area, the average weekly gross wage is £453.20, and the council tax for a band D property is £1,589.38 a year. In Westminster, where I am during the week, the average weekly wage is £786.10, and band D council tax is £710.50. This means that the average person in Westminster is earning more than £300 a week more but pays £879 less in council tax for their local services.
Despite the challenges to funding and the fact that if Lincolnshire County Council were funded the same per capita as the average council in the country, it would receive £116 million more than its current budget of roughly £500 million, it has been able to do some very innovative things with its funding. We have discussed the environment a lot this week. South Kesteven District Council introduced “The Big Clean” initiative last year, which visits each village of the district to remove fly-tipping, clean signs, remove undergrowth and do other things suggested by the local residents to improve the environment in which people live and ensure that they can take pride in their surroundings.
Gravity Fields festival, which has been running since 2012, is an innovation of our local council. This goes beyond delivering the basic services; this is the best in the country. It is a festival of art and science inspired by Sir Isaac Newton, who was from Grantham and went to the local school. The festival not only provides the people of Grantham with information on art and science and very interesting experiences, but it raises £1 million for the local area through visitors staying there and spending their money on food and drink and the like. This is a Conservative council doing its best to deliver really innovative stuff, despite having a stretched budget.
North Kesteven District Council, which covers the other part of my constituency, is similar. It has looked carefully at the challenge of being good to the environment while providing the social housing that is required. It has won awards for building curved homes and passive houses, delivering the next generation of social housing in an environmentally sustainable way. It is not only providing basic services but going above and beyond, to provide excellent services. Lincolnshire County Council receives lower than the average per capita funding, as I have said, but it is still providing our children and young people with what Ofsted describes as “strong and effective” services for those with special educational needs and disabilities.
The ageing population presents one of our nation’s most profound challenges. It raises critical questions about how, as a society, we enable all adults to live well in later life and how we deliver sustainable public services to support them to do so. There will be 2 million more people aged over 75 in the next 10 years, and many of those will be managing long-term conditions. It is vital to make sure that local councils are supported to provide for elderly citizens so that they can age with dignity. That is why I am glad this Conservative Government have invested in social care, with a 23% increase in the improved better care fund to £1.8 billion, an additional £410 million through the social care support grant and £10 billion for adult social care being provided to councils by 2020.
I really welcome the additional resources that have been provided for social care by this Government, but as a Member representing a rural constituency it is important for me to emphasise that an extra £1 for social care in London will go further than an extra £1 in Lincolnshire. Rural areas face higher costs for the delivery of public services than urban areas. [Interruption.] The hon. Member for Denton and Reddish (Andrew Gwynne) says from a sedentary position, “That’s not true”, but if one is visiting an elderly person in their home and then travelling on to visit the next elderly person in their home, there is of course a gap.
Andrew Gwynne
I am not saying that is not true; the Ministry of Housing, Communities and Local Government’s own report says it is not true.
Dr Johnson
I hear what the hon. Gentleman says, but it seems to me that rural shires often have Conservative-led local authorities that provide their services more efficiently. In practice, if we ask a carer to go out to visit three elderly people in a morning, for example, and those houses are very close together, as they may be in Westminster, they will be able to visit, spend longer with them and have lower travel costs than they would if they had to visit three houses in my constituency, which covers 433 square miles and is all within the same county council.
As I was saying, when it comes to social care, this problem is in large part due to both the demographics and the distances involved. As I have said, my constituency spans 433 square miles and has a low population density, and there are longer travel distances for staff to deliver care. Furthermore, Sleaford and North Hykeham, as a rural area, has a higher number of older residents. Those older residents have worked hard their entire lives and now need support from our public services to ensure that they can maintain a higher quality of life.
However, this is not all about funding. Actually, I think it is sad that so much of the debate has focused almost entirely on who is going to provide the most money, while only a little bit has been on how to pay for it, and not so much on innovation and quality of care. The important thing is not shouting about who can spend the most money, but who can deliver the best outcomes and provide the best care for people, because that is surely what everybody on both sides of the House wants.
Last year, there was the launch of the National Centre for Rural Health and Care in Lincolnshire. This is a grouping of the NHS, the University of Lincoln, Health Education England, Public Health England and the East Midlands Academic Health Science Network. This pioneering group will look at improving how we deliver care in local areas.
There is also the social care and digital innovation programme, which is run by NHS Digital. This gives money for local projects, so somebody with a local project that they think could improve care for residents, if they had a little bit of start-up funding to test it, could receive money to support the design and trial of digital solutions to improve care and provide value for money. Previous projects include an exoskeleton device in the Isle of Wight to give people greater independence, and the provision of Amazon Alexa in Hampshire to help people to maintain independent living.
There are other projects, too. In Cornwall, Peninsula Community Health Services is looking at how to prevent pressure sores. We know that 500,000 people in this country develop a pressure sore every year. These are excruciatingly painful, can become infected and, in the worst cases, can lead to such a serious infection that the patient dies. The continuous pressure monitoring technology devices will be able to help people identify hotspots even before the skin damage occurs and prevent that from happening. That is an investment in something that, overall, will not just improve patient care but save money.
The Leeds Care Record looks at how information can be shared—data protection means that in some cases it is difficult to share information held by hospitals and GPs—and how referrals are made. When I first qualified as a doctor, all the letters were dictated and signed, but now they are typed and sent electronically. Cumbria, for example, saves £400,000 a year by sending referrals electronically. That also saves time, which means not only saving money but improving the efficiency of the service delivered to patients.
I am glad that the Government acknowledge the need to change the outdated funding formula, which has failed accurately to recognise the discrepancy in need between urban and rural areas; that need is often hidden in rural areas. As Ministers review the consultation findings, I hope they will ensure that the new funding formula adequately takes that into account.
Finally, as a member of the Conservative party, which has long been the best custodian of the public finances, I say that it is imperative that money is spent both wisely and efficiently. The issue of social care goes much wider than just funding. Despite the challenges facing local councils, I have seen at first hand how the brilliant work by North and South Kesteven District Councils and Lincolnshire County Council can support the people in my constituency and make our resources go as far as possible.
Caroline Dinenage
I am just going to make a bit of progress.
The hon. Member for Glasgow North East (Mr Sweeney) highlighted the difficult choices we have had to make. By painting an even bleaker picture of how things have panned out north of the border, he showed just how difficult those choices have been.
The hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) spoke movingly about her constituents, Paul and Lily. She was right to highlight the very personal cases and individual stories that every single one of us comes across in our constituency casework. If she wants to send me more details, I am happy to raise the issue with my colleagues at the Department for Work and Pensions.
The population is ageing. The number of people aged 75 and over is set to double over the next 30 years, and the number of people of working age with care needs is also growing. Some of today’s speakers have painted a picture of a social care system that is broken as a result of a lack of funding, but the truth is that while money is undoubtedly tight, if we are to face the challenges of an ageing population, we need to do more than just put more money in. We need a large-scale reform of the system if we are going to face the future with confidence that we can care for and support those who most need it. In the short term, we have put in around £10 billion of additional funding, but we will be bringing forward an adult social care Green Paper that will look at the long-term funding of adult social care.
Question put and agreed to.
Resolved,
That this House notes that despite the Prime Minister announcing that austerity is over, local authorities’ spending power per household is on course to fall by an average of 23 per cent by 2020, and that nine of the 10 most deprived council areas in this country have seen reductions that are almost three times the average of any other council under this Government; recognises that this has resulted in social care budgets in England losing £7 billion; further notes that at the last General Election Labour committed to a fully costed plan to invest an additional £8 billion in social care over this Parliament; and calls on the Government to ensure that local authorities and social care are properly and sustainably funded.
Andrew Gwynne
On a point of order, Mr Deputy Speaker. I am really pleased that the practice of having Opposition day debates has resumed, although it is regrettable that the Government’s practice of not voting on them seems to have resumed as well. This implies Ministers’ acceptance of the motion, and that they are acknowledging unfair cuts impacting on the most deprived communities and the social care crisis. What can be done to bring Ministers to the Dispatch Box, in the terms of the motion before the House today, before the local elections so that they can set out how they are going to solve the funding crisis?
Oral Answers to Questions
Andrew Gwynne Excerpts(5 years, 8 months ago)
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James Brokenshire
I am sorry—the hon. Lady has I think set out a request for further funding, but my understanding is only £27 million of the initial £37 million allocated to Scotland was spent, and that none was given to councils. Perhaps she can clarify the priority and intent of the SNP in Scotland to ensure that Scotland is well prepared.
Andrew Gwynne (Denton and Reddish) (Lab)
Can the Secretary of State not understand the scepticism about his comments, not just from the Select Committee but from many Members on both sides of the House? After all, it was his Department that left bidding for Brexit contingency funding to the very last minute, it was his Department that diverted council funding away from some of the most deprived communities in England, and it was his botched announcement on the Stronger Towns fund that has left many of those communities feeling left behind. Can he now, without any spin or bluster, confirm to the House whether the most deprived communities in England will see a share of the shared prosperity fund that, pound for pound, is less than, equal to or greater than the share of the European structural development fund it replaces?
James Brokenshire
Before responding to the hon. Gentleman’s question, may I say how pleased I am to hear that his grandson is now recovering and returning to full health? I am sure that the whole House will cherish and treasure the fact that that young child is back on the road to recovery.
The hon. Gentleman highlights broader issues on preparation. I have already underlined the extensive work that we have done with local government. I look forward to consulting on the UK’s shared prosperity fund in detail. Those allocations will be allocated and set out through the spending review. I hope even now that his community will apply for funding through the Stronger Towns fund so that it gets the support it requires.
Stronger Towns Fund
Andrew Gwynne Excerpts(5 years, 9 months ago)
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Andrew Gwynne (Denton and Reddish) (Lab)
I thank the Secretary of State for advance sight of his statement, but we should call this out for what it is. This supposed funding boost is a pittance that will do little compared with the billions that his Government have already cut from our local communities. It will do little to reverse the damage that they have inflicted in each and every region. The reason that many of our towns are struggling is a near decade of politically imposed cuts, including to council funding and public services, by this Conservative Government. No one should be hoodwinked by such a shameful and pitiful attempt to gain support for the Prime Minister’s botched withdrawal agreement.
The fact is that between 2010 and 2020, councils will have lost 60p out of every £1 that the Government provide for services. Why has the Secretary of State cut 60p in every £1 from local government? Why did he not announce a reversal of that cut today, considering that it has left local services facing a funding gap of £3.2 billion? By 2025, the gap facing our local councils will rise to £7.8 billion.
If that was not bad enough, at a time when the Government should be reinvesting in our most deprived areas, they are instead cutting them even harder. Nine of the 10 most deprived councils in England have seen cuts of almost three times the national average. With such policies, does the Secretary of State believe that his party is truly showing itself to be the party for the few and not the many, or is this, as many of us suspect, a thinly veiled effort to mask its near decade of failure?
The Secretary of State says that he has taken deprivation into account when considering the allocation of this fund. That is baffling, because earlier in oral questions he again refused to say that deprivation would be included when considering the local government settlement. Why is deprivation rightly included in this fund but not the fair funding formula review? He mentioned Blackpool, yet Blackpool—the most deprived area in England—has seen a cut in spending power of more than £45 million this decade. That is more than the £40 million a year that the entire north-west of England will get from this fund.
Compared with the cuts that the Conservative Government have inflicted on our local communities across the country, this funding announcement is a drop in the ocean. We have seen cuts in spending of £7.3 billion over the past decade as a result of nine years of austerity. Even if we are being favourable to Ministers, the Government’s enticement is £5.7 billion short of the cuts that they have already inflicted. It is £434 million short of the damage they have caused to the east of England; £405 million short of the damage they have caused to the east midlands; £505 million short of the damage they have caused to the north-east; £1.18 billion short of the damage they have caused to the north-west; £353 million short of the damage they have caused to the south-east; £273 million short of the damage they have caused to the south-west; £709 million short of the damage they have caused to the west midlands; and £735 million short of the damage they have caused to Yorkshire and the Humber. What does the Secretary of State have to say to local people in regions for which this money still leaves a massive shortfall of hundreds of millions of pounds?
The funding promised by the Secretary of State over the next seven years does not even get close to matching the amount that regions have received from the European Union over the last seven years through European regional development and social funding. This package is £642 million a year short of the money that English regions would have received, and that is despicable.
This announcement is inadequate and confused. Why is £600 million unallocated? Why is there no clarity at all about where the money will go and on what? The Secretary of State talked about other parts of the United Kingdom. Will this money be distributed through Barnett consequentials, or will the Ministry of Housing, Communities and Local Government be given a new role? What will the allocations to Scotland, Wales and Northern Ireland be? Why did No. 10 not know what period the fund was for this morning, only for it then to be clarified that it is a long period of seven years?
There is still time for Ministers to reconsider the cuts to councils. I ask the Secretary of State to do so, and to do so immediately, because the danger for us all is that our communities will continue to decline if they do not get the proper support they need. It is time for a Government that will give our towns and communities the funding, resources and support they need to recover—one that will act genuinely in the interests of the many, not the few.
James Brokenshire
I thank the hon. Gentleman for his comments. He sets out a narrative in relation to the savings that councils have had to make, but he ignores the fact that the last Labour Government had already set in train cuts to local government. The idea that cuts would not have had to be made by any incumbent Government is simply not a reflection of the reality.
The hon. Gentleman sets out various points in relation to the benefits attached to different communities and investment into regions, but he ignores the £9.1 billion of local growth funds to local enterprise partnerships through three rounds of competitive growth deals, the investment of £3.4 billion for the northern powerhouse, £1.9 billion for the midlands, £700 million for the east of England, £2.1 billion for London and the south-east and £970 million for the south-west. He does not mention the coastal communities fund, the home building fund and the housing infrastructure fund, and he does not mention the national productivity investment fund, which is all about investing in our regions and our communities, and ensuring that we grow productivity and all communities are able to benefit further.
However, this is about towns, as I have indicated. It is about the towns that need a sense of identity and sense of growth, as I set out in my statement. Yes, on the allocation of £1 billion, which the hon. Gentleman asks me to set out, there are notional allocations to the particular regions, and we want to see bids from towns, working with the local enterprise partnerships, coming through in a very positive way. Equally, as I indicated in my statement as well, we want to ensure that we reflect on the fact that towns in other areas may not necessarily fall within those neat parameters. We therefore want to see bids come in from towns across the country for deals based on their ability to set out their bright, positive future.
The hon. Gentleman listed a number of figures in relation to, as he set it out, cuts. I would say to him, equally, that he well knows that the local government financial settlement this year has a real-terms increase in the money going to the core spending power of local councils across the country. He asks what we can point to in other areas. Let us look at the changes in employment that this Government have seen: there has been a 5% increase in the north-east, 7.1% in the north-west, 7.7% in Yorkshire and the Humber, 6.8% in the east midlands, 10.1% in the west midlands, 9.1% in the east, 22.4% in London, 7.5% in the south-east and 8% in the south-west. This Government are growing the economy and seeing the benefit in jobs and prosperity, and we want to take this to the next level.
The hon. Gentleman highlighted the devolved Administrations. We will seek to ensure that towns in Wales, Scotland and Northern Ireland can benefit, building on the success of the UK Government’s city and growth deals. We will confirm in due course the additional funding we will provide to reflect this new funding for England. This is about the determination we have for our towns—those places at the heart of our growth, our identity and our sense of who we are as a United Kingdom. I am sorry if he cannot see that, but it is actually about investing in the future, investing in our communities and seeing the bright, positive future ahead for our United Kingdom.
Oral Answers to Questions
Andrew Gwynne Excerpts(5 years, 9 months ago)
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James Brokenshire
The hon. Lady will know the guarantees in place in relation to structural funds currently provided by the EU, but clearly we want new arrangements in place through the UK shared prosperity fund. We will come forward with the details of that fund, and the spending review will set out the monetary aspects.
Andrew Gwynne (Denton and Reddish) (Lab)
After nine years of this Government’s slash-and-burn approach to deprived areas, the Secretary of State has announced a new fund for our left-behind towns, but since 2010 we have seen a cut to Wigan Council’s spending power—the Government’s preferred measure—of £67 million and a cut of £45 million to Blackpool’s. As a region, the north-west has lost almost £1.5 billion but will receive just £281 million over seven years under this initiative. Does he understand why Members across the House feel disappointed and patronised by his announcement today?
James Brokenshire
I am surprised that the hon. Gentleman has not recognised the additional funding that will be going into local government this coming year. The cash increase I have outlined is a real-terms increase to local government that is focused on supporting issues such as social care. Yes, the Government recognise the hard decisions that councils have had to make, but we are now supporting councils to do the right thing for their communities and ensure the improvement we all want to see.
Andrew Gwynne
It is only an increase for councils because it is predicated on those same councils’ increasing their council tax to mitigate a £1.3 billion Government grant cut. The announcement that the Minister has made today means very little, given that he plans to shift the funding formula away from those very same left-behind towns in future years to favour the wealthy Tory shires. Will he now remove any uncertainty, and ensure that deprivation is factored into any future fair funding review so that it is actually able to live up to its name?
James Brokenshire
I am sorry that the hon. Gentleman has clearly not been through the consultation, which demonstrates on various issues such as social care where deprivation is firmly relevant. We are ensuring that we provide support for councils—[Interruption.] The hon. Gentleman keeps saying “baseline”; he seems to have gone into some kind of trance. We are providing £650 million for social care in the settlement for the forthcoming year because we absolutely recognise local authorities’ demands and needs; it is about seeing that local government is well supported for its communities.
Greater Manchester Spatial Framework
Andrew Gwynne Excerpts(5 years, 10 months ago)
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Mr Wragg
The hon. Lady makes an important point. She is correct that, to get residents to buy in to that level of development, they will need assurance that it will not simply add to congestion on local roads, and that there will be adequate provision of hospitals, doctors and school places. That would be the same in all our constituencies.
Since being elected in 2015, I have campaigned alongside residents to protect the local green belt, particularly around the village of High Lane, from massive developments such as those proposed under the GMSF. I have attended public meetings, led debates in the House, submitted a petition from more than 4,000 constituents, worked with my constituency neighbours and lobbied three different Housing Ministers about the matter. I want to put on the record my thanks to all the local people who, with their letters, signing various petitions, organising demonstrations and making their voices heard, have supported the campaign so far, and I hope they continue to do so. I also want to thank my colleagues from across the region who have led similar campaigns in their constituencies, particularly my constituency neighbours in the Borough of Stockport, one of whom, the hon. Member for Denton and Reddish (Andrew Gwynne), we are delighted to see on the Front Bench and will speak for the Opposition today. At this time of apparently unsurmountable political divides, we have been able to work on a cross-party basis. If we can work in such a way, there is hope indeed. Despite my opposition to parts of the framework, I also want to thank the combined authority for listening to people and for taking note of their concerns and revising the plan.
What is the upshot of the policy changes, and is the revised GMSF any better? From my own constituency perspective, one major improvement is how the overall housing targets under the framework appear to have, in effect, been assessed at a county-wide level rather than a purely local authority one, which means that some of the house building targets from the first draft can be redistributed across the local authority boundaries to where local housing need is perhaps higher or land availability greater. The approach is sensible and was a change that I and others called for in response to the first draft.
Andrew Gwynne
I congratulate the hon. Gentleman on securing this debate. He and I are both Stockport Members of Parliament. He knows that some in Stockport, principally the Liberal Democrats, have talked about pulling Stockport out of the county-wide co-operation on planning. Does he agree that that would be absolute folly because the situation that he has just described, whereby some of Stockport’s housing growth can be shared across the county, would not be available to Stockport should it pull out of the GMSF?
Mr Wragg
The shadow Secretary of State is absolutely right. It is highly irresponsible for any political party to make such broad statements, which could increase the pressures on local green belts by some 5,000 for the Borough of Stockport. He is completely right to place that on the record this afternoon.
The updated proposals also mean changes at a local level in Stockport and will instead see the number of new houses earmarked for building on the green belt reduced from 12,000 to 3,700. In my constituency of Hazel Grove, the figure has been reduced from 4,000 to 1,250. Critically, plans to more than double the size of the village of High Lane with an extra 4,000 houses have been reduced to 500. However, to fit some of the new homes needed, new sites at the former Offerton High School, Gravel Bank Road and Unity Mill in Woodley and Hyde Bank meadows in Romiley have been suggested under the revised plans. Those sites will be much smaller than the original High Lane proposals at about 250 homes each, and in some cases will partly use previously developed land.
The revised plans that greatly reduce the amount of green belt to be sacrificed show that when local people come together and we work on a cross-party basis we can get results. I have consistently urged that the overall number of houses needed to be reduced, and that where houses are to be built we should follow a robust “brownfield first” policy. I therefore welcome the fact that the revised GMSF plans do both of those things. The result of the changes is a step in the right direction, in many aspects, as regards the controversial elements of the framework. However, as ever, there is more work to be done.
Almost half of the UK population live in rural, semi-rural or suburban communities close to green-belt land. The green belt is a vital barrier to urban sprawl and is hugely valued by local people. Our road infrastructure and transport capacity already struggle with existing demands. The proposals for development will risk making matters worse. The green belt encourages regeneration of our towns and makes the best use of our land. It therefore protects the countryside and all the benefits that that brings.
To protect and enhance the countryside, which borders the homes of some 30 million people, we must press on with the “brownfield first” approach. The green belt should not be used for housing development on the scale currently proposed. The fact is that we need more housing, but it should be implemented following a vigorous “brownfield first” policy. Insisting that brownfield land, which has had development on it previously, should be prioritised for the building of homes would encourage the regeneration of our towns and would ensure that the best use is made of our land. Importantly, it would ensure that housing is located where there is already the necessary infrastructure, and where local services can be augmented and improved.
To minimise the pressure on the green belt, it is important that we identify as best as possible all brownfield land. We should look at areas that are vacant or derelict so that we can optimise their potential for development before considering green-belt sites. Credit is therefore due to the Government for the creation of the brownfield register, following the Housing and Planning Act 2017. It has enabled hundreds of additional brownfield sites to be identified, and so has removed a considerable amount of the pressure on the green belt. Some good progress has been made in that area.
Thanks to the brownfield register, we know that Greater Manchester has at least 1,000 hectares of brownfield land spread across 439 sites, which have not yet been fully developed for housing. That is enough to build at least 55,000 homes, and it is likely that more such land can be found. Stockport has a reasonable number of those sites, although not as many as other areas. Stockport’s brownfield register, which is administered by the local council, has made it possible to identify sites within the urban area suitable for the development of up to 7,200 housing units. That is a considerable amount more than when we began this process a couple of years ago.
The Campaign to Protect Rural England estimates that, across the country, there is enough brownfield land to build some 720,000 homes. That figure has been revised upwards from the 2017 estimate of 650,000. Those brownfield sites have the potential to contribute significantly to the construction of the homes that are needed.
Another significant development since the last debate came in September 2018, when the Office for National Statistics released its most up-to-date population figures and household forecasts. Its publication of the new household projections led to a reduction in the overall numbers generated by the standard method for assessing local housing need. They proved to be nearly 25% lower than previously thought. Consequently, they gave rise to a national need target of some 213,000 new homes per year.
In October 2018, the Government published a technical consultation on the update to national planning policy and guidance. I commend them for a masterpiece of obfuscation. The consultation paper set out proposals to update planning guidance on housing need assessment to be consistent to the Government’s ambition to increase housing supply. They propose that planning practice guidance should be amended to specify that the 2014 ONS projections provide the demographic baseline for local housing need, rather than the 2016 figures. They produced their consultation response just two days ago, so colleagues may be forgiven for not having read it yet.
Despite clear opposition to the proposals from organisations and individuals, the Government have signalled their intention to ignore the latest ONS figures and use the outdated but higher 2014 projections. That means that they will overlook the latest ONS forecast, and instead stick to the previous target of 300,000 new homes per year, which will, I am afraid, lead to increased pressure on green-belt land.
I have a number of questions for our excellent Minister. First, I want to make a rather technical but nevertheless important point. I reiterate the point that I made when I wrote to the Secretary of State in December in response to the Department’s consultation. I believe that the 2016 projection should be used to provide the demographic baseline for the standard method. I strongly disagreed with the Ministry’s proposals, and I still do. Failure to use the most up-to-date evidence in creating policies is, I think, directly contradictory to the rules of the national planning policy framework. Moreover, there were 498 responses to this question, and of those organisations that responded, more than half—55%—disagreed with the change; only one third agreed with the proposal. In fact, more than two thirds of local authorities opposed the plans. Individual respondents, of whom I was one, were overwhelmingly opposed; the figure was 86%.
I have concerns about the Government’s response to the ONS figures and the message that that may send. If the Ministry selectively considers evidence that justifies its housing need figures, that suggests that the direction of travel is only one way. It seems a departure, I contend, from evidence-based policy making. It is a case of cherry-picking facts to ensure that the means justify the ends. I therefore urge my hon. Friend the Minister to reconsider the approach of his Ministry in this area.
Secondly, there must be stronger consideration, at individual site level, of what is being lost in terms of green space or green belt, particularly with regard to wildlife corridors and recreational spaces. A local site of particular concern to me is the area at Hyde Bank meadows in Romiley in my constituency. It contains the well used community facilities of Tangshutt fields, including playing fields, three football pitches and a children’s play area, and is adjacent to Tangshutt meadow, which is a popular local green space, a nature reserve, a community orchard and allotments. The loss of that green space would damage the local environment, the community and the health and wellbeing of local people, and it is but one example from the GMSF second draft document.
Finally and importantly, as I mentioned at the beginning of my speech, more attention must be paid to how local infrastructure will support the new developments where and when they may be approved—that follows on from the excellent intervention by the hon. Member for Stretford and Urmston (Kate Green)—particularly in respect of roads, traffic and local amenities. Although it would obviously have fewer homes than the 4,000 previously proposed, even a relatively small site—250 homes—would mean at least 250 extra cars on the road; there would probably be two or indeed three cars per household.
Many of the site-specific proposals in the revised framework refer to road and rail upgrades, in the immediate vicinity of sites, to provide access to the developments and to manage traffic in and around the new estates. However, beyond that, the framework generally gives no further details of what that will entail in the surrounding areas. It makes only vague references to developing travel plans or travel corridors, or general improvements to highway infrastructure. Without any level of detail, it is very hard for local politicians or local people to know the true impact that there may be on their area.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Stringer.
I thank my Greater Manchester neighbour, the hon. Member for Hazel Grove (Mr Wragg), for securing this very important debate. It is a debate that has attracted a lot of attention and emotion, certainly within Oldham West and Royton, and I want to explore some of the issues involved. I also place on the record my thanks to the shadow Minister, my hon. Friend the Member for Denton and Reddish (Andrew Gwynne), for allowing me to speak from the Back Benches.
I absolutely support the development of a spatial framework for Greater Manchester. We are a growing city region, we are a thriving city region and we are—in my opinion—the best place in the UK to live, and it is important that we plan ahead and make sure that we are fit for purpose in providing employment land, housing land, recreation and quality of life; but how we do that is critical, and I shall point out a number of ways in which we have not quite got the balance right.
We need to start at the beginning, and the beginning is that the Government have imposed a housing target on Greater Manchester that does not hold up to scrutiny. Greater Manchester does not need the housing numbers that the Government are imposing on it when, as has been outlined already, the latest population estimates show that we need far fewer homes than have been proposed. Today the Government could commit to using the latest population data and save us a lot of aggravation, a lot of grief and a lot of really high emotion, where people are losing valuable green-belt land unnecessarily. Why is there such emotion? For that reason, but also because there is in many of our communities a range of brownfield sites—sites that are dirty; former industrial sites—that the community would love to see redeveloped.
However, all of us present in Westminster Hall know that those brownfield sites will not be the ones to be developed if the developers are holding the ring on this issue. The spatial framework does not provide for the sequencing of land development, to enable us to have a genuine “brownfield first” policy whereby sites that commanded community support were developed, obviating the need to use the green belt.
Andrew Gwynne
My hon. Friend makes a really important point, because this issue is about more than the sequencing of the disposal of sites for development; it is also about market economics, or supply and demand. If there is an oversupply of green-belt land that does not meet the real housing need of the conurbation, is it not the case that in 25 years’ time our successors might be debating in this place the next version of the Greater Manchester spatial framework, speaking with regret about the missed opportunity whereby we had lost green-belt land but those brownfield sites were still brownfield?
Jim McMahon
That is absolutely the point, and it will be echoed by thousands of people in Greater Manchester who are not happy with the current settlement.
In my constituency, we had a programme called housing market renewal. The idea was that areas of the housing market that were underperforming would be transformed through modernisation, demolition and rebuilding, to create urban environments where people were proud to live—not houses that were simply built to service the industrial revolution but houses that were fit for the future, too. In 2010, when the coalition Government came to power, that scheme was cancelled overnight. That left many streets in my constituency with their windows boarded up. Actually, many of those houses eventually had the boards taken off and are now in the hands of private landlords, who are making an unreasonable amount of money from housing benefit, so that people can live in what I still consider to be substandard accommodation.
The principle of a brownfield fund is really important. Not only is green-belt land more advantageous to build on, but green-belt sites are often the sites that are commercially viable to build on. The problem with many brownfield sites is that mediation—such as taking out any services that might have been there for a different road layout, removing contamination, and removing a lot of very expensive material to landfill—costs a lot of money. In areas such as Oldham, where some of the house prices are depressed—that is certainly the case in Oldham town—it is just not possible to reconcile the high development costs with the end-sale value of those properties. So there must be Government intervention to bridge that gap. None of that is proposed as part of this new settlement for the community, so, as has already been stated, we will have a situation where green-belt land is taken because it is developable and viable and it will make a profit for the developer but, for a range of reasons, brownfield sites will be left as eyesores.
Many sites in active use in my constituency are waste transfer sites—abattoirs or former haulage yards, for example. They are currently earmarked for employment use, because that is their current use, but they are in predominantly residential areas, so the road layout does not service large-vehicle movements. The community would love those sites to be re-categorised for residential development, but that is not allowed under this process, because there is a requirement that sites be practically deliverable within the life of the plan. Of course, if the current landowner has no immediate intention of developing that land, it cannot be included because it has no reasonable prospect of being delivered.
We all know that demand for sites for employment use is changing rapidly. Oldham used to have 300 mills. Those that remain are now self-storage. People always said, “We’re always going to need storage, so there’s always going to be a role for Oldham’s mills,” until, of course, we built high-bay warehousing out of town on the green belt because distribution companies wanted more than mills with five floors, in which it is more expensive to move goods around. That shift in demand should be taken into account.
Local areas should be allowed more flexibility to re-categorise and transform dirty industrial sites into new residential sites. That is not the case at the moment, due to the requirement for there to be a reasonable prospect of a site’s being brought into use within the life of the plan. That does not enable local areas to lead from the front and say to landowners, “We have a better vision for our community than a waste transfer site.” [Interruption.] I am being heckled by the Minister. That is fine—I am quite used to being heckled—but it would be great if he provided a substantive answer to some of these fundamental questions.
Why have an inflated target for housing and population when the latest data says we do not need that target? Why not allow the creation of a proper brownfield fund, so that we have the cash in place to redevelop the land that people want to see redeveloped? What about infrastructure? In Greater Manchester, we have lost more than 1 million miles of bus journeys since 2010.
Andrew Gwynne (Denton and Reddish) (Lab)
I congratulate my hon. Friend the Member for Hazel Grove (Mr Wragg) on securing this debate. I will call him a friend, because although we are from different political parties, we represent constituencies in the same borough and have worked together on a number of issues. Sometimes the artificial barriers that this place sets up mask the real co-operation between Members on both sides of the House.
I believe in plan-led systems. They work best when larger areas co-operate over a wide geography, and I have experience of that. Before I became the Member of Parliament for Denton and Reddish, I served for 12 years as a councillor on Tameside Metropolitan Borough Council—one of the 10 councils that make up Greater Manchester. I remember very well, in my early days as a Tameside councillor in the mid-1990s, the proposals to introduce the Tameside unitary development plan. It was intended to replace the Greater Manchester structure plan, which had been in existence since the formation of the Greater Manchester County Council in 1974. The Greater Manchester structure plan, like the Greater Manchester spatial framework, covered the entire county. It made sense, because it meant that economic growth, housing growth and infrastructure planning happened on a county-wide basis, and that there could be co-operation across all the constituent authorities. Spatial planning actually worked. It is no good having 10 individual plans, because all 10 councils want to chase after the same goose that lays the golden egg.
Sadly, that is the situation that we fell into. When the Greater Manchester structure plan became obsolete, the then Conservative Government of John Major instructed the 10 metropolitan borough councils of Greater Manchester to get on and do their own thing. Each of the 10 local authorities produced its own unitary development plan. That was great for someone looking inside the box of just the city of Manchester—you served as a leader of that local authority for a considerable time, Mr Stringer—Rochdale, Oldham, Tameside or Stockport, but of course those boroughs do not act in isolation from one another.
With devolution, with the creation of the Greater Manchester combined authority and with the election of a Greater Manchester Mayor, I saw a real opportunity to get spatial planning right for the whole county so we can pool and share not just our resources, through things such as business rate retention, but our strengths as a destination—as a place to live and do business. I am biased. I will not get into a debate about which is the second city of this country; I will leave that to Birmingham and London, because we all know that Greater Manchester is the best place in the United Kingdom.
I saw those things as an opportunity, but I feel as though it is slipping away. We have had some really good co-operation on things such as housing targets, but as my hon. Friend the Member for Hazel Grove said very seriously, if Stockport were to go it alone, the housing needs that would fall on Stockport would mean that it would have to eat into the green belt. It is a very constrained borough, in the sense that it is surrounded by the green belt on three of its four sides. The only place where there is no green belt is where Stockport meets the city of Manchester and Tameside, but there is no room for it to grow that way either, because it has developed right up to those boundaries. By co-operating—not only has Stockport done that, but all the other outlying boroughs have done it to a lesser or greater extent—Salford and Manchester have been able to take around 40% of the housing growth for the entire county. That is good, because it will reinvigorate a large swathe of redundant brownfield sites in east Manchester, which borders my own constituency, as well as in the city centre and central Salford. The sites have lain derelict for decades and it is right that they are utilised first.
I do not just want to see growth in the central core, important though that is. There will only be a certain amount of demand for apartments and high-rise buildings without the greenery and the personal and private open space that comes with houses with gardens. There will have to be housing growth not just in the central core of the conurbation, but in the outlying areas. My hon. Friends the Members for Oldham West and Royton (Jim McMahon) and for Heywood and Middleton (Liz McInnes) are absolutely right. Unless we can get proper sequencing of “brownfield first”, there is a real danger for our conurbation.
The urban regeneration in the city centre is happening because land values have gone up, which makes brownfield sites worthy of developing, but similar brownfield sites—former old industrial sites that are now suitable for housing in Oldham, Rochdale, Tameside and parts of Stockport—will not have the same land value, and that value falls even further if there is an oversupply of green-belt land. This is about free market economics, and supply and demand. If I am a developer and a mass of sites have been identified, I will go for the cheapest site that gives me the greatest return. Frankly, in Greater Manchester, that is a green-belt site.
There could be much more buy-in to the loss of green-belt land. We all recognise that some green-belt land will have to be developed in the future growth of our city region, but if green-belt land is to be taken, we must have a proper “brownfield first” approach. I do not want to be here in future years saying that my constituents were proved right because the derelict site in the centre of Denton is still derelict 10, 20 or 30 years on, but the green-belt land surrounding Denton has been eaten up by development. If the green-belt land has to be built on—I accept that some of it might have to be—let that be because the brownfield land has been exhausted and it is absolutely necessary to build on the green-belt land. We should be creating sustainable communities. For a community to be genuinely sustainable, we need urban regeneration alongside new builds.
I want to commend the two councils in my constituency. Stockport Council is very ably led by Councillor Alex Ganotis, who is standing down in May. I thank him for his public service. He has done a great job of emphasising the need for urban regeneration. I particularly thank him for what I think will be a great legacy of his: the future regeneration of Stockport town centre. As part of the Greater Manchester spatial framework, with Andy Burnham using his new mayoral powers to create mayoral development corporations, Stockport is going to have the first mayoral development corporation in the country. It will regenerate Stockport town centre, which has got so much going for it. At the moment it is quite derelict on the edges. The historic core of the town—an absolute beauty—does not have the retail offer that it should have. However, the more people we get living and working in the town centre, the more vibrant and active it will become. I commend Stockport Council for its approach to urban regeneration, and I look forward to the mayoral development corporation transforming Stockport into the employment, residential and retail hub that a town of that size should be.
I also pay thanks to Councillor Brenda Warrington, leader of Tameside Metropolitan Borough Council, not least because she is my parliamentary agent; until last month she was also my constituency party chair. She, too, has approached the spatial framework process with fresh eyes. She understands that the environment matters, too; the built environment matters, and the natural environment matters.
One lasting legacy of the old Greater Manchester Council, and something I am really passionate about, is the transformation of the river valleys across Greater Manchester from industrial blackspots in the 1970s to linear country parks. In every part of Greater Manchester, there are river valleys that 45 years ago were industrial wasteland, but anyone standing in them now would think they had always been open countryside. One thing that unites the whole of my constituency, cross borough as it is, is the Tame valley.
I raise the Tame valley because the main campaign that has brought the hon. Member for Hazel Grove and me together is a campaign against the extension of the Bredbury Parkway industrial estate. I am not against economic growth, and Greater Manchester needs to grow economically. It is not a bad thing to want jobs to be created in Greater Manchester, in locations where our constituents can access them, but I have an issue with Bredbury Parkway. The existing industrial estate is locked in by the infrastructure in the hon. Gentleman’s constituency. It has direct motorway access on to the M60 at Bredbury roundabout, but unfortunately most HGVs cannot use it because they cannot get under the low railway bridge on the main line between Manchester and Sheffield.
I have met Highways England, Network Rail, Stockport Council and the prospective developers. It is fair to say that the prospective developers do not want to pay for any infrastructure upgrades—certainly not of the magnitude required. Highways England and the highways authority of Stockport Council say that the road cannot be lowered under the bridge, because it has already been lowered to its maximum depth; if it is lowered any further, the bridge will fall down. Network Rail says that to rebuild the bridge would involve the closure of the main line between Manchester and Sheffield, which would require funding of many millions that we will not get.
If there is any extension to the Bredbury Parkway, HGVs will have to come through Denton in Tameside to get on the motorway network at Crown Point. My constituents will not have that. They are already blighted by a considerable number of HGVs coming from the Bredbury Parkway scheme. Any extension would not be acceptable to them on traffic grounds or, indeed, on air quality grounds. My constituency is one of the most air-polluted in Greater Manchester. Two motorways run through it—the M60 and the M67—and anything that makes air quality even worse for my constituents is, frankly, not acceptable.
However, the situation is worse than that. The developers propose, aided and abetted by the Greater Manchester spatial framework process, to build very large distribution sheds in the “v” of the Tame valley. Everything at the top of the hill, in the constituency of the hon. Member for Hazel Grove, has basically already been developed, and everything sloping down to the River Tame, which is the constituency boundary as well as the local authority boundary, is currently pasture. Those sheds would be terraced, but—this is worse—they would come right up to the river bank. On the opposite bank are not one but two local nature reserves, which are very precious not just to the people who live in my constituency, but to those in the hon. Gentleman’s constituency.
It would be fine to destroy the green belt in that way if we took the jobs argument alone. However, this is not a Stockport local plan—this is not a matter just for Stockport—but a Greater Manchester strategic plan, and over the whole county there is an oversupply of new land for economic development in the spatial framework, so the argument for removing the green belt at Bredbury automatically disappears. That land is not just green belt; it is the Tame valley. It is the thing that unites Tameside and Stockport, and every part of my disparate communities of Dukinfield, Audenshaw, Denton, Reddish and the Heatons. That is why I am so cross; it is why I will continue to oppose the Bredbury Parkway scheme, together with the hon. Gentleman; and it is why I hope those who propose the Greater Manchester spatial framework exercise common sense with the next revisions, which will be published after the consultation ends.
I want very briefly to refer to the concerns of my hon. Friend the Member for Makerfield (Yvonne Fovargue), who cannot be here. I would probably have had to give her the same dispensation as I gave my hon. Friend the Member for Oldham West and Royton, because they are both members of the shadow Housing, Communities and Local Government team. She feels really strongly about this issue, so she has asked me to say a few words on her behalf. She has led a campaign with local councillors in Wigan against the use of land to create warehouses by junction 25 of the M6. In 2013, a similar scheme was thrown out by an independent planning inspector, but planning permission has already been submitted for warehousing the size of six football fields, and the jobs have been advertised.
That poses an important question: what is the point of even consulting on a spatial framework if developers can usurp the system as they seem to have done? That is precisely what is happening at Bredbury, where the developers have already held a public consultation. It makes a mockery of the plan-led system. I hope to get reassurances from the Minister that he takes very seriously the principle that developers and others should not seek to usurp the plan-led system, but that we need to get the plans in place before developers seek to develop cherished protected sites.
The other thing that has been mentioned—
Graham Stringer (in the Chair)
Order. I am sorry to interrupt the hon. Gentleman, but I would be grateful if he started to bring his remarks to a conclusion so the Minister has about the same time as he has had.
Andrew Gwynne
I am bringing my comments to a conclusion. I just want to touch on the serious issue of the numbers. We need clarity from the Minister about whether we should use the ONS numbers or the earlier numbers he set out. That brings me back to my first point about supply and demand. If we have an over-supply of green-belt land because we have used the wrong set of figures, how can the Minister give assurances to any of our constituents that those brownfield sites will be developed first?
I hope that the Minister will take on board the concerns we have raised and that he understands our sincerity. We want the best for Greater Manchester—we want our city region to grow and be prosperous—but it has to be sustainable for the future of all our communities.
Graham Stringer (in the Chair)
I ask the Minister to leave at least a minute at the end for summing up.
Local Government Finance
Andrew Gwynne Excerpts(5 years, 10 months ago)
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Andrew Gwynne (Denton and Reddish) (Lab)
We expected better from this Secretary of State and wanted to see better from this Government. I thank our dedicated council staff and our local councillors of all political persuasions and none, because, frankly, over the past nine years they have all been hung out to dry by successive Secretaries of State.
This is an Alice “Through the Looking-Glass” settlement. Ministers present a cut as an increase, but back in the real world, what we saw in the provisional settlement, which was reaffirmed last week in the Secretary of State’s written statement to the House, is that there is no new money, no new ideas and no recognition of the dire situation facing councils. Between Christmas and last week the Secretary of State had the chance to change tack, but he has just confirmed to the House that the settlement is identical to the provisional settlement that failed so miserably before Christmas.
Local government is at the heart of our local communities. It looks after the most vulnerable in society and makes our local green spaces cleaner and safer, but under this Conservative Government we have seen unprecedented levels of cuts to our local councils. The fact is simple: between 2010 and 2020, local government in England will have lost more than 60p in every £1 that the Government provide to our communities for services.
Ms Karen Buck (Westminster North) (Lab)
We just had a debate on the police settlement grant. Does my hon. Friend agree that local authorities are at the forefront of prevention work, so it is particularly tragic that my local authority, Westminster, has removed all funding from youth services, after-school services and holiday schemes and, like authorities all over the country, lost at least a third of early-intervention funding?
Andrew Gwynne
My hon. Friend is absolutely right. The fact is that councils are the lynchpin of the provision of proper, cohesive, joined-up services with other agencies, whether housing associations, the police, leisure services or youth services. It is crucial that our councils and councillors are given the resources they need so that we do not cost-shunt from one area of the public sector on to the others. It is self-defeating to cut youth services, early intervention and police budgets at the same time, because we end up in the situation my hon. Friend describes.
Mr Jim Cunningham
I thank my hon. Friend for giving way. I was rather surprised that the Secretary of State did not give way to me; he is usually quite generous, so I am disappointed.
More importantly, it is vital to the people of Coventry that we represent them. Their budgets—if I can put it that way—through the city council have been cut by well over 50%. That has affected libraries, children’s services, care in the community—I could give a litany. It has been a general attack on public services, whether we talk about local authorities, the health service or other services. It is vital that we know the breakdown of the £1 billion pounds that the Secretary of State just announced—I noticed that he tried to avoid that. My hon. Friend is right that central Government are shifting expenditure on to the local council tax payer, rather than facing up to their own responsibilities.
Andrew Gwynne
My hon. Friend, who is a doughty champion of the people of the city of Coventry, is absolutely right. What we have seen today from this Secretary of State is smoke and mirrors. He can talk about a spending power increase across local government, but that is predicated on every English local authority increasing council tax by the maximum level possible—an eye-watering, inflation-busting increase. We know that not every local authority can raise sufficient money by council tax alone, which is the reason behind the revenue support grant. A 50% cut to the revenue support grant of my hon. Friend’s city of Coventry is a big cut by monetary standards. Coventry’s council tax base does not allow the city council to raise anything like enough money to plug that gap.
Kevin Hollinrake
The hon. Gentleman talks about the revenue support grant. How can it be right that a person in London gets £437 per year allocated to them from the central Government grant, a person in a metropolitan borough £319, and a person in a county £153? How can that be fair or right?
Andrew Gwynne
I will answer that: a third of the services are more expensive to deliver in urban areas. That is the fact. It is in the Government’s own report that was commissioned for the then Department for Communities and Local Government. Some Tories do not get the reality of this, but I imagine that those who represent urban areas probably—silently—do. The fact is that revenue support grant is there because Governments of all political persuasions recognise that not every area is the same. The baseline is not the same. In some urban areas, the council tax base is low.
Andrew Gwynne
No, I am answering the hon. Gentleman, if he will do me the courtesy of listening.
Every local area has a different council tax base. I hazard a guess—I do not have the facts in front of me —that a 1% increase in council tax for Tameside Council, which I partly represent, will raise significantly less than a 1% increase in his area’s council tax, but the needs of Tameside are as great, if not greater, than some of the needs of his constituents.
Andrew Gwynne
I will give way later if the hon. Gentleman will allow me.
According to the Local Government Association, the change in the revenue support grant has left local services today to face a huge funding gap of £3.2 billion. This is the Tory-led Local Government Association, so I hope that Tweedledum and Tweedledee sitting opposite will listen to this. It includes a £1.5 billion gap in adult social care funding, a £1.1 billion gap in children’s services, a £113 million gap in tackling homelessness and a £531 million gap in public health. By 2025, the gap facing local councils will rise to £7.8 billion, which is something that should shame us all.
Mike Hill (Hartlepool) (Lab)
My hon. Friend is making a very powerful speech. On the issue of child poverty, we have high debt rates and nine food banks in Hartlepool. How can my local authority cope with a £6 million funding shortfall and 40% departmental cuts right across the patch?
Andrew Gwynne
My hon. Friend is absolutely right. This is what Government Members really need to get about some of the authorities that we represent—although, to be fair, a number of Conservative Members represent authorities with very similar deprivation statistics to those represented by my hon. Friends.
The fact is that if we want to tackle health inequalities, narrow the gap between the richest and the poorest, and actually do the things that the Conservative Prime Minister said were her main aim and ambition on the first day that she took office, we have to ensure that local authorities have the resources they need.
Ian Mearns (Gateshead) (Lab)
When the Conservatives were in government in the early ’90s and they had to consign the community charge to the dustbin of history, they brought in the council tax and everyone breathed a sigh of relief. The trouble with the council tax is that it depends on there being a median band D council tax raising power in every part of the country. Just under 70% of the properties in my area are in band A; we cannot raise the revenue locally, so by taking away our revenue support grant, the Government are really crippling councils like mine in Gateshead.
Andrew Gwynne
My hon. Friend is absolutely right. Scandalously, council tax now equates to 7% of the income of a low-income family, compared with just 1% for a higher income family. That is unfair. Some people say that we can merely reform the council tax by adding extra bands to the end. Let me tell my hon. Friend—I imagine his area is very similar to mine—that we can add as many extra bands on the end as we like, but it will not raise a single penny more for my council because we do not have houses that would fall into those bands.
Daniel Kawczynski
The hon. Gentleman has spoken a great deal about pressures on urban areas, but in my constituency in rural Shropshire there are additional costs involved in providing services across a very large, remote, rural area, and we have a lot more senior citizens than the national average. Is he saying that, under a future Labour Government, there will be more money for urban areas rather than rural ones?
Andrew Gwynne
I am afraid that the hon. Gentleman has fallen into the trap that has been set by his own Ministers. We should not be talking about urban versus rural, or cities versus towns and villages. What is important is not how we cut an ever-diminishing cake differently, which is the approach of Ministers; we need to grow the cake. Politics is a question of priorities and Labour has set out very clearly how we would put more money into local public services, meaning more money for the hon. Gentleman’s council as well as more money for mine.
Ruth George (High Peak) (Lab)
I thank my hon. Friend for making the excellent point that this is not a dichotomy between rural areas, such as that which I represent, and urban areas. We cannot be robbing one area to give to another. The fact that this Government have cut and cut and cut means that costs are increasing in counties such as my county of Derbyshire. Local authorities have overspends on adult care purchased services and on children’s services because they have been cutting social services and early help. That is why councils are struggling all over the country.
Andrew Gwynne
My hon. Friend is absolutely right, and she is also right that it should not be about urban versus rural, but that is what the Government have made the situation with their approach to local government finance over the last nine years—this perverse reverse redistribution. The facts speak for themselves, and they should shame each and every one of us in this House.
We have seen a shift away from spending based on need and deprivation. The Secretary of State can shake his head, but nine out of the 10 areas seeing the biggest cuts to spending power per household, in pounds sterling, are all Labour controlled. Between 2010 and 2019, Hackney has seen a spending power cut of £1,406 per household, Newham a cut of £1,302 per household, Tower Hamlets a cut of £1,264 per household, and Knowsley a cut of £1,057.06 per household. It is worth noting that Knowsley is the second most deprived area in the country and has received the fourth biggest cut of any council. Nine of the 10 most deprived councils in the country have seen cuts of almost three times the national average. Blackpool, the most deprived area in England, has seen a spending power cut of £680 per household. Then there is Knowsley, followed by Hull, with a cut of £710; Liverpool, with a cut of £924; and Manchester, the fifth most deprived area, with a cut of £902 per household.
Mr Dhesi
My hon. Friend is making a most powerful argument. Local authorities like Slough are currently housing 79,000 homeless families in temporary accommodation, including more than 120,000 children. Last year, there was the largest annual increase in children in care since 2010, and councils are now starting 500 child protection investigations every day. Does he not agree that that is a diabolical situation resulting from these harsh ideological cuts?
Andrew Gwynne
My hon. Friend is absolutely right. I pay tribute to his council for all the hard work that it is doing in very difficult circumstances. Cuts do have consequences, and cuts that are outside the control of the local authority are now presenting themselves as spending problems for town and county halls across England. That is why we are so angry about what this Government are doing.
Andrew Gwynne
I will give way in a little while.
I have talked about the shift of resources out of some of the most deprived communities in England. Yet contrast that with the councils that have seen the smallest cuts in cash terms—or in some cases, increases—over the nine years of Tory austerity. Seven out of the 10 areas seeing the smallest cuts to spending power per household are Conservative-controlled councils. That is very clearly what is going on here. Let me give the Secretary of State and his MPs the facts. The Isles of Scilly have seen a £337 per household increase in spending power, Wokingham a £40 per household increase, Horsham a £16 per household increase, Surrey—the council of the Chancellor—a £13.12 increase, Hart a £9 increase, Uttlesford an £8 increase, Stratford-upon-Avon a £7 increase, and Tonbridge and Malling a £4 increase. It is only when we get to places like Maidstone that we start to see spending power cuts over the past nine years —of just £6.78 per household.
Of the councils that are getting increases, not one of them is a Labour council. It is an unfair funding system peddled by a Secretary of State and Government who are recklessly gambling with our communities.
Mr Dennis Skinner (Bolsover) (Lab)
It is even worse than that. This ever diminishing cake has now been subject to the Prime Minister—not the Secretary of State, the Prime Minister—offering bribes to people who are going to—[Interruption.] This is part of the system, and it can affect any area—
Andrew Gwynne
My hon. Friend makes a powerful point. Communities that need help and assistance after nine years of Tory austerity should not be offered help and assistance in return for getting the withdrawal agreement through this place; they should get it because it is the right thing to do for those communities. He is right to turn down such offers, as he has done.
If the statistics that I have mentioned were not bad enough, at a time when the Government should be reinvesting in our most deprived communities, helping them and lifting people out of poverty, they propose to cut even further. What we see in this perverse reverse redistribution is another cut to the revenue support grant of £1.3 billion, taking money away from the poorest communities in England. Yes, the Government have announced £1 billion of additional spending in the Budget, and they re-announced it in the provisional settlement and today. But the reality is that the way they propose to distribute that additional money, which does not offset the loss of revenue support grant in absolute terms anyway, is unfair.
For example, the Government are changing the way that the pothole money they announced is to be allocated. Tories who represent urban constituencies should be worried about that, because the Government are moving away from the type, width and usage of a road and merely using a simplified formula based on length of road. That is great for a constituency with lots of country lanes that are used by one tractor a day and 16,000 sheep, but try telling the people who live on potholed dual carriageways in urban areas that they are losing funding by the fiddle and sleight of hand that Ministers are adopting.
Children’s services are the biggest single cost pressure facing our local councils. That was one reason why Northamptonshire County Council—it gives me no pleasure to say that it is a Tory council—was the first council to declare bankruptcy not once but twice in the same year. Not only has that caused misery for families and children, but councils have had to squeeze the place-based services that people think they pay their council tax towards to be able to look after children. That is the right thing for councils to do, but the Secretary of State has to understand that £84 million divided by five divided by 20 councils will not resolve the problems facing children’s services in England. Adult social care has a massive £1.5 billion funding gap next year. Where is the Green Paper? It has been delayed and delayed. That can has been kicked so far down the road that it is probably on the country lane with 16,000 sheep.
In closing—[Hon. Members: “Hear, hear!”] Those on the Government Benches can cheer as much as they like, but they are cheering cuts to the poorest communities. I suspect that many Conservative Members have now forgotten why they came into politics. The Prime Minister was right when she entered Downing Street—it should be about narrowing health inequalities. It should be about caring for those who cannot care for themselves. It should be about dignity in old age and looking after our children. I want, and we on the Opposition side of the House want, to improve the lives of people in every part of the country. We have not forgotten how important it is to deliver for local communities when and where they need it most.
Not a day goes by but people claim that politicians are all alike, that we are all the same and that there is no difference between the lot of us. They need to look at this debate today, and by doing so they will see that there is a difference between the Secretary of State’s party and ours. Our party—the Labour party—would never hit the most vulnerable like this, and we have a record to prove it. Politicians are not all the same. Some of us remember why and how we got into politics in the first place. A Labour Government will stand up for local communities. After all, Labour councils are leading the way in standing up for the local services that people rely on. A Labour Government will share power with local areas. We need to make sure that they have a Government who will rebuild this country for the many, and not the few.
Several hon. Members rose—
Oral Answers to Questions
Andrew Gwynne Excerpts(5 years, 10 months ago)
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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.
Local Government Funding Settlement
Andrew Gwynne Excerpts(6 years ago)
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Andrew Gwynne (Denton and Reddish) (Lab)
First, let me thank the Secretary of State for giving me advance sight of his statement. But the real thanks have to go to our councillors, of all political persuasions and none, and to the frontline heroes who, despite almost a decade of austerity, have worked hard to keep our local public services going at the same time as demand has increased and funding has fallen through the floor. The under-resourcing of local government—the sector has lost 60p in every £1 of central Government funding, according to the Tory-led Local Government Association —and the reverse redistribution policies of his Ministry have exacerbated these problems, and he cannot hide from that fact.
Let us bust the myth—this might come as a revelation to the Secretary of State and his Ministers—by pointing out that not all areas are the same. Some areas have greater deprivation and greater poverty, and greater demand for people-based services as a consequence, yet these same areas have fronted the heaviest cuts, and that is continuing—it is not ending. But the Government’s approach, as we have heard here again today, is to shift the burden on to council tax. He knows, and it is an inconvenient truth, that areas such as the one I represent and the one my hon. Friend the Member for Oldham West and Royton (Jim McMahon) represents cannot bring in anything like the resource from council tax that his own council can bring in, and that widens the inequality across England.
So can the Secretary of State confirm how much of the 2.8% that he has announced, with fanfare, is actually being raised through council tax rather than from central Government funding? Can he confirm that he is recommending an inflation-busting council tax rise this year to local government to plug his Department’s gaps? How will he therefore address the inequality issue whereby revenue support grant is distributed on a needs-based formula, but council tax revenue is collected and spent locally, meaning that the richest parts of this country will be able to raise significants more than the parts of the country with real deprivation and real demand on public services? Can he confirm that his plans mean a £1.3 billion cut to RSG next year, offsetting the £1.3 billion of spending in his announcement? That really is the reverse redistribution that I talked about.
Does the Secretary of State agree with his official who told the Public Accounts Committee that the sector is sustainable only if it delivers only statutory services? The Secretary of State will know that councils deliver much more than the bare legal minimum—700 or more non-statutory services to be precise. We are talking about Sure Start centres, libraries, parks, museums and investment in youth—all are not included in his assessment of sustainability. So which of those should councils stop providing altogether, if they are to take the advice of his officials? The truth about this statement is that it was actually the worst secret Santa ever, because much of what he has announced today was already announced by the Chancellor in his Budget—there is nothing new here.
On adult social care, we were told by the Tory-led Local Government Association that it needs £1.3 billion next year and £2 billion for children’s services, yet the Secretary of State has re-announced £650 million for both—not only that, but it could be shared with the NHS. How is that going to be split between services for adults, children’s services and the NHS? Can he clarify that? The Secretary of State says he is working with the Health and Social Care Secretary to soon publish the Green Paper on social care. Given the pressures that councils are facing, and the real heartbreak and misery experienced by service users, can he tell us how soon is “soon”? Or is this like the Brexit meaningful vote, whereby no date is ever given? The fact is that social care is in crisis. The promised Green Paper has now been delayed four times and it is more than a year late.
On public health, we have seen this week that health inequalities are widening, with life expectancy going backwards in the poorest parts of the country. After £700 million of cuts to public health budgets, and more cuts to come next year, all falling disproportionately on the poorest areas, why is the Secretary of State not doing more to protect those budgets from being used for what are clearly non-public health projects?
Two years ago on the steps of Downing Street, and again last night, the Prime Minister promised to build a country that works for everyone. At her conference, she promised to end austerity. But is it not the case that Brokenshire today delivered another broken promise? Food bank use has increased to the highest rate on record. Child homelessness has increased to the highest level in recent years. Yesterday, we were told that for the first time since records began, life expectancy has come to a standstill, and in some areas it is falling.
The UN special rapporteur on extreme poverty and human rights warned that local authorities have been gutted by a series of Government policies. Although the Secretary of State may wrap up his statement in Christmas paper, when we unwrap the parcel we will still see poorer areas in this country getting poorer. Frankly, that should shame us all.
James Brokenshire
I appreciate the hon. Gentleman’s comments, but I am disappointed that he has not recognised the increases in spending that were set out in the Budget and that I have underlined, and the fact that I highlighted further spending in today’s statement. To take up his theme, one of my colleagues questioned whether the hon. Gentleman might be the Gwynch that stole Christmas. He should recognise that even in his local area there is Stockport Metropolitan Borough Council, with an extra £5.6 million in core spending; Tameside Metropolitan Borough Council, with an extra £4.5 million in core spending; and Oldham Metropolitan Borough Council, with an extra £3.6 million increase in core spending.
The hon. Gentleman should recognise the context of the work that the Government have done to clear up the mess that we inherited. [Interruption.] No, no— the UK economy has grown for five years, there are 3 million more people in employment since 2010, and manufacturing has grown for its longest period in the past 20 years. I recognise that local government has contributed to the hard work involved in clearing up that mess. We know that the demand on local services has increased. We have recognised that in the statement and will ensure not only that councils have the tools and flexibilities to deliver efficiently and effectively, but that they will have the additional funding that I set out today. We are equipping councils well.
The hon. Gentleman highlighted several points about deprivation. The most deprived authority’s core spending power is 23% higher than that of the least deprived. We take council tax into account in funding and when we look into issues of equalisation. He also highlighted the issue of negative RSG. I addressed clearly and firmly in my statement how that will be dealt with.
On social care and the £650 million, the hon. Gentleman questioned the need for strong integration—strong working between our councils and our NHS—to deliver quality services. That is profoundly what needs to happen so that we are looking after the most vulnerable in our communities. I am sorry if those on the Opposition Front Bench do not acknowledge or accept that. It is a fact that 93% of local authorities recognise that the better care fund has promoted integration and improved joint working in their areas.
This is a statement and settlement that, yes, acknowledges and recognises the pressures on social care, and that there is more work to do in respect of the forthcoming Green Paper and on how we will apply the learning from local government to drive better services. I will continue to be a champion for local government and what it delivers and does in our communities. I am proud to support local government and that positive work within our areas.
Oral Answers to Questions
Andrew Gwynne Excerpts(6 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
James Brokenshire
A clear mechanism is in place in relation to what are known as the new burdens on local government and therefore we take that into account and reflect further on the costs that local authorities may have in relation to other governmental activities, and that is what we do.
Andrew Gwynne (Denton and Reddish) (Lab)
The record is clear: Northamptonshire bust; other councils edging towards the cliff edge; and no end to austerity, with cuts to council budgets continuing. Last week, senior officials told the Public Accounts Committee that their measure of a council’s financial sustainability is now based solely on the delivery of statutory services. Our councils are at breaking point. Is the Secretary of State not even slightly embarrassed that his Ministry has let the cat out of the bag on the decimation of local public services on his watch?
James Brokenshire
Yes, local authorities have had to bear a cost and have made some incredible efficiencies and savings as a consequence of the need to deal with the problems that we inherited from the previous Labour Government. I say to the hon. Gentleman that, when we come to the discussion over the settlement, he will see that our work will ensure that local councils have a real-terms increase in their funding and services and therefore what we are doing to ensure that councils are viable and have a positive future.