Local Government Procurement

Debate between Andrew Gwynne and Andrew Bingham

Wednesday 16th January 2013 Westminster Hall

[Andrew Gwynne]

My hon. Friend makes an important point, because the impact of the local government settlement on a council such as Tameside has been nothing short of devastating. Projections show that coming years will be very difficult for Tameside and other boroughs if things do not improve substantially. That will involve not just the council’s own budget, but the wider local economy. The amount of money being taken out of areas like Tameside will have a devastating impact on the communities we represent.

I want to highlight some of the good work being done in my constituency. The importance of local procurement to support small and medium-sized enterprises is well known. Research in 2005 by the New Economics Foundation with Northumberland county council suggested that for every £1 of direct spending in the local economy, the total value, including indirect spend, equates to £1.76. At the start of the economic downturn, Tameside metropolitan borough council, one of two councils covering my constituency, introduced the Tameside Works First initiative to give more support to local companies and to help to boost the local economy. It was spearheaded by Councillor Keiran Quinn, then the cabinet member for economic development and now the executive leader of the council, precisely to provide support to local companies. Under that programme, specific capital projects and programmes were designated to be supplied locally when possible. At the same time, partner organisations were encouraged to sign up to a local procurement charter, committing themselves also to support a local supply chain.

[Andrew Bingham (High Peak) (Con)]

I congratulate the hon. Gentleman on securing this debate. Ours are neighbouring seats and we share some cross-constituency issues. Does he agree that, to help small local businesses, it is important to remove many parts of the bureaucratic process, such as pre-qualification questionnaires? Small businesses tell me that they must complete these big questionnaires, often for small orders.

[Andrew Gwynne]

I agree that a lot of unnecessary bureaucracy is often tied up with some contracts. Tameside council has tried to enable small local businesses, no doubt including businesses in the High Peak area, to access council contracts.

Local Government Funding

Debate between Andrew Gwynne and Andrew Bingham

Monday 6th December 2010 Commons Chamber

[Andrew Bingham (High Peak) (Con)]

rose—

[Andrew Gwynne]

I will not give way—I want to make some progress.

It is a similar story when we look at the changes to long-term sickness benefit, which is being cut by £2 billion a year. Tameside will lose £11 million a year: £85.14 per head of the working age population, compared with £45.18 for Tatton or £13.18 for Kensington and Chelsea. This is hugely unfair, and it clearly illustrates who is bearing the brunt of the spending reductions.

Let me turn to how the Stockport part of my constituency will be affected. The Liberal Democrats who run Stockport council are being very evasive—to put it politely. We know that they have to make about £20 million of cuts next year, but so far they have announced only £15 million—they will not yet say where the other £5 million will come from. That uncertainty is chronically unfair on their dedicated and hard-working work force. I find it ironic that the Liberal Democrats tabled one council motion after another condemning Labour’s grant settlements—real-terms increases, year on year, on a frequent basis. Since their Government announced cuts, there has been not a single peep from any of their councillors. Nobody likes to be unpopular, least of all the Liberal Democrats, who have become past masters at blaming somebody else, but they are not being straight with the people of Stockport about where the axe will fall and what the impact will be on front-line services. Instead, they are using convenient managerial phrases such as “service redesign”, “restructure” and “reprioritise” when they really mean cuts.

Cuts on this scale mean big job losses. Only last week, Stockport council announced 250 job losses, which will mean unprecedented reductions in services that will be felt in every corner of our community—although given the previous form of Stockport Liberal Democrats, no doubt many of the cuts will hit the Reddish wards in my constituency hardest.

There is suspicion about where the axe will fall next. It is alleged, for example, that all the youth centres will be closed, including the one in Reddish, which does an invaluable job in keeping young people engaged with their education and away from trouble. This is a wider problem within the coalition Government and their ill thought-out plans regarding local government finance. How can they possibly create the so-called big society when the voluntary sector, which will be fundamental to it, will face such substantial reductions in its core funding as these local government cuts start to bite hard? Of course, as we heard earlier, many workers in the public and voluntary sectors are women who work in the heart of our communities as teaching assistants, care assistants, school crossing patrollers and dinner ladies. It is truly hypocritical of the coalition Government to talk about the big society, and then to attack ordinary people working in their local communities in a range of important jobs.

It is perhaps not sufficiently understood that many jobs in the private sector are dependent on local government and public sector funding. Demand will be taken out of the local economy, so many retail and service companies will suffer. Tameside pioneered a scheme called Tameside Works First that prioritised the granting of smaller contracts to local companies to assist them through the downturn, helping local companies such as Denton-based Anvil Masters, which provided new park railings for Granada park in the town. Tameside should be lauded for pioneering such a scheme. However, the cuts will have a ripple effect in the private sector in my constituency and in every constituency.

Finally, the poorest, those who are most at risk and those who are most in need in our communities will be affected heavily by the cuts to council services. Some of the same people will be affected by the cuts to housing benefit. Recent research has shown that about 3,700 people in Tameside and 3,600 people in Stockport will lose out because of the proposed changes to housing benefit, some by as much as £42 a week. We should not forget that since the economic downturn, some households will have lost a wage and some people will have moved to lower paid jobs. That means that there are now even more low-paid families and that even more help is needed from local council services, at a time when councils are least able to help.

There is an emerging pattern across the country of who will be affected the most by local government cuts and the changes to the way in which central Government funds are handed out to councils: poorer areas in cities and metropolitan boroughs will face the brunt. The Labour Government had a strong record of increasing funding for local authorities in such areas, and of using those authorities to deliver national priorities by harnessing the best locally. Worse still, it is clear to all Labour Members that the Government have taken no account of how areas such as Denton and Reddish will fare with the massive reductions in spending. Sadly, we face a bleak future with trepidation.