Local Government Finance

Anna Dixon Excerpts

Wednesday 5th February 2025 Commons Chamber

[Shaun Davies]

I agree with my hon. Friend, the Chair of the Select Committee, that it is not sustainable. It is also bad for children, families, councils and communities. If children are in temporary accommodation, they genuinely do not know what school they will go to next term. That is bad for children, who are the next generation of citizens.

We need systematic change. Central Government need to ease the burden on local authorities and spread out the load; build enough affordable homes so that we do not have 354,000 people who are homeless every single night in England; move care into the community, as the Darzi report recommended; and resolve the systemic issues so that social care providers do not face funding crises every single year. I add my modest voice to the calls of other hon. Members: will the Government please communicate the public health grant to local authorities so that they can set budgets for the next financial year in a meaningful way?

[Anna Dixon (Shipley) (Lab)]

My hon. Friend makes a good argument about the amount of local government funding that has to go into adult social care. The cuts that we saw under the Conservative Government have hit disabled and older people particularly hard. Does my hon. Friend agree that the new Labour Government’s uplift to local government funding will go at least some way towards addressing the critical cuts that have affected disabled people and social care?

[Shaun Davies]

I thank my hon. Friend and recognise the contribution that she has made for that section of our society. I agree that far more needs to happen, and I know that the Minister is as ambitious as the rest of us to ensure that those 14 years of austerity are addressed.

Giving councils the funding that they need is a welcome change from the constant cuts under the Conservatives, and it helps us to address the emergencies in the short term, but it is also important that we have a Government who accept that the long-term systemic issues require transformation, who do not pretend that everything is fine, and who accept that things need to change and that local government is faster, cheaper and more agile in delivering services on behalf of our communities and our citizens. As I said earlier, it is the best preventive service this country has.

The Government’s missions are ones that I and many Labour MPs back, but almost all of them run through local government. Whether it is safer streets, housing, social care or reforms to the NHS, it requires a confident, healthy local government sector that is able to deliver those services. As I said, this is a vital first step. I know that the Minister, who has exceptional experience in the sector and huge amounts of respect, also recognises that, and I look forward to seeing what comes next.

--- Later in debate ---

[Robbie Moore]

I will give way to my neighbour, the hon. Member for Shipley (Anna Dixon). I hope that she will join me in opposing the council tax rise.

[Anna Dixon]

As the hon. Gentleman well knows, the cuts made to local government by the Conservatives when in government, through the grant, hit councils such as Bradford district and those mentioned by other hon. Members the hardest. That is why Bradford council was pushed into exceptional financing, has had to borrow and has had no choice but to put up council tax. Even with the council tax rise, it will still be below average. Does the hon. Gentleman agree with my assessment?

[Robbie Moore]

I am pleased to see that the hon. Member has been given her Labour Whips’ handout note. It is interesting that not once did I hear her oppose the Labour Government’s increase in council tax. Not only that, but she did not call out the mismanagement of the Labour-controlled authority. I am referring to the whopping £50 million of taxpayers’ money spent on the music venue Bradford Live. It was promised that it would open for district of culture—we have been awarded city of culture in Bradford district, but I refer to it as district of culture because that money should be benefiting all the constituents across the Bradford district—and was estimated to cost around £25 million, but Labour councillors signed off an expenditure of £50 million. It is not even open to the public yet, even though it is city of culture now.

[Anna Dixon]

Will the hon. Gentleman give way?

[Robbie Moore]

I will not give way, because I do not think the hon. Lady will agree with me and many of the constituents across the Bradford district in opposing a nearly 10% increase in council tax. I hope that her constituents are watching.

Not only that; it also comes down to the absolute mismanagement of children’s services by Bradford council. Let us not forget that the previous Conservative Government had to step in and take children’s services off Bradford council because multiple damning Ofsted reports indicated that it was not through the fault of those providing children’s services and the level of care needed on the ground that the services were failing; instead, the disconnect in management at the very top of Bradford council was so bad and was failing our children that the Government had to step in and set up a children’s trust, which I must say is now having benefits.

Is it not ironic that the Labour Government will refer to our 14 years, but in 2021 the Labour administration at Bradford council submitted, as part of its statutory duty, a report stating that the council was in a “sound financial position”? Yet now the council is claiming that it is £150 million in debt and seeking a council tax increase of 9.9%, despite having requested a 15% increase. What on earth are this Government doing to hold to account local authorities that are failing constituents in the delivery of services? Where on earth is that accountability?

Bradford Live is not the only place on which huge amounts of taxpayers’ money has been misspent; One City Park, in the centre of Bradford, is another such venue. Car parks are being knocked down. That is not the job of a local authority. We should be relying on private sector inward investment to pay for regeneration projects. The job of a local authority is to focus on providing statutory-based services, not dipping in and out of regeneration schemes, and failing, at the cost of my constituents. Now we see through our city of culture status, which does not seem to be benefiting many of my constituents, the council wanting to construct a fancy art piece in Centenary Project. Who on earth in the Keighley and Ilkley constituency is benefiting as a result of that work?

[Robbie Moore]

I absolutely agree. That point has been made not only by my hon. Friend, but by many Conservative Members. They say that the Government may, on the one hand, be passing down finance to local government, but they are, on the other hand, taking it away through the increase in employer national insurance contributions. This is a classic socialist policy: they are taking with one hand and telling councils how to spend it with the other.

Not only are my constituents going to be exposed to an increase of just about 10% in council tax, without the opportunity for a referendum to decide, but they are experiencing vast cuts to local services. We have had two household waste and recycling centres close in my constituency. The council is selling off assets. There are assets that have not yet been protected, despite the warm words coming from our Labour local authority. Assets such as the Ilkley lido, Keighley market and shops are now being considered for disposal, creating added worry to many of the occupants of those shops that the council own.

We have seen parking charges rise in villages such as Addingham, which means that the shops, which need those people to buy their products and to benefit their local economy, are now facing detrimental impact. Where does the issue of fairness kick in? In my constituency, the local council, which has increased council tax, spend that hard-earned money on a huge amount of mismanaged projects, wastage projects and projects that are not even open.

I submitted a freedom of information request to find out whether my constituents were getting a fair level of spending in the constituency. I asked the local authority how much had been spent on highways in my constituency over a two-year period. There are five constituencies across the Bradford district, so one would expect the figure to be about 20%, but it was about 7% on average over the two-year period. No wonder the state of potholes in my constituency is far worse than in the inner-city centre of Bradford. How can I justify backing any increase in council tax when the spending is so dire?

I want to come back to the issue of accountability. The last chief executive of Bradford council, Kersten England, held that post for a long period, and oversaw the mismanagement of finance and the diabolical handling of children’s services before the last Conservative Government stepped in, but—jobs for the boys—what is she doing now? She is chairing city of culture. What an absolute disgrace, in terms of who is being held accountable by the Government.

Let me quote some of the concerns that constituents have raised with me about council tax being raised by 9.9%. One said, “I will be 70 next year, and I am still having to continue to work to make ends meet.” Another said, “I am disabled and now, as a result of this council tax hike, will have to use my own savings to look after myself.” Another said, “I am a single mother with three children and I simply can’t afford this.” Another said, “I didn’t ask the council to throw money at a concert venue that is not open”—and therefore not benefiting my constituents—“yet they have done that and are expecting me to pay the price.” Another said, “It’s difficult to see why I would like to live through my retirement, having to spend this much more.” The list goes on.

There is only one long-term solution, and I will be interested to see what the Government have to say about it. I have long been campaigning, along with the former Member of Parliament for Shipley, Philip Davies, to pull our two constituencies out of Bradford council and create our own unitary authority away from the mismanagement of Bradford city.

[Anna Dixon]

Will the hon. Gentleman give way?

[Robbie Moore]

I give way to the hon. Member for Shipley.

[Anna Dixon]

As the hon. Gentleman knows, he and my predecessor put the idea of a breakaway council to his own Government, who rejected it as a complete non-starter. Let us work together across Bradford for the benefit of all our constituents.

[Robbie Moore]

I would be interested to hear what the hon. Lady’s constituents say. She has quoted the previous Administration completely wrongly, because they were absolutely behind the campaign to split the two constituencies apart. Indeed, I had many a meeting with the boundary commission. The challenge is that we have to get consent from the local authority, and we have a Labour-controlled authority that will not go anywhere near this campaign. Why? Because they know that my constituents are effectively the cash cow for the rest of Bradford. We are the dominant contributor to council tax and business rates, which feed city centre projects in the centre of Bradford.

I would like to understand the current Government’s position on my campaign to pull my constituency and Shipley—I believe I speak on behalf of many Shipley constituents—away from Bradford council so that we can have our own unitary authority, spend our own council tax and business rates in our own area, ensure that our local priorities are indeed prioritised, and leave Bradford city to make its decisions. I would be interested to hear what the Minister has to say on that, because that is the only way of achieving a long-term solution for my constituents across Keighley, Ilkley, Silsden, Worth Valley and the wider constituency that I represent.