Local Government Finance

Debate between Anna Soubry and Jim Cunningham

Wednesday 22nd February 2017 Commons Chamber

[Anna Soubry]

I could not agree more. My hon. Friend makes a compelling point.

Broxtowe Borough Council has done a terrific job, and I pay credit to the previous authority, run by Labour and the Lib Dems, which started the sharing of back-office functions. Obviously I take the firm view that the new Conservative-run council is even better—[Hon. Members: “Hear, hear!”] I genuinely believe that it is, notwithstanding the unfortunate position that it now finds itself in. I shall address that point in a moment; my speech will not be all roses, as you can imagine, Mr Deputy Speaker. We are here to represent all our constituents, and we are also here to represent our hard-working councillors.

Broxtowe Borough Council—now Conservative run—has continued much of the good work on sharing back- office functions, but as my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) says, there is only so much that such councils can do. Broxtowe continues to carry out such functions, but we are now going across borders and sharing functions with Erewash and, increasingly, with Rushcliffe. I have already told the leader of our borough council, Councillor Richard Jackson, that I am slightly worried about that. He shares my view that we should move to a unitary arrangement. That is brave of him, as the leader of a borough council—he is also on the county council—but Conservatives are increasingly being brave and considering whether going unitary would be better. If they are to make that advance, however, they will have to work even more with other authorities in the county rather than crossing the border into Derbyshire. So Broxtowe Borough Council is sharing back office duties, but as my hon. Friend said, there is only so much that it can do. Let us look at planning. No disrespect to all my great planning officers, but in reality we need one unitary authority to deal with important planning matters.

I shall turn now to the difficulties that Broxtowe undoubtedly faces. Because of the settlement, Broxtowe Borough Council will lose around £380,000 in 2017-18, and a total of £1.18 million over the next three years. That equates to an increase in council tax of about 5%. We must bear in mind that one of the reasons why the Conservatives came into power in 2015 was our promise not to increase council tax. Broxtowe does not want to put up council tax but it faces a big drop in its income in the coming years. The council, and Councillor Richard Jackson, are agitated even more by the short notice that has been given of the settlement. He told me that the administration had

“hardly any time to plan for the reductions that will be needed”.

It has had only a few weeks in which to balance next year’s budget.

It is tough to say this, but the reality is that all our local authorities are increasingly finding themselves in financial difficulty. They have a desire to deliver excellent services, but the amount of money available to them—notwithstanding the good work that so many of them have done to reduce their costs—is putting a strain on their ability to deliver the first-class services that they are determined to deliver. I make this plea on behalf of Broxtowe Borough Council. It has accepted this cut, which will be difficult—the Secretary of State was good enough to arrange a meeting with representatives of the council, and we are grateful for that—but enough is enough. Really, these must be the last such cuts to good local authorities such as Broxtowe.

I want to turn now to business rates. Having had the pleasure of working with the Secretary of State for 12 months and more, I have absolutely no doubt that he understands the needs, the pressures and indeed the joys of running a small business. He gets that—of course he does—and I am proud that we did so much in our time together to improve the lot of small businesses. However, I have big concerns about business rates. Now is not the time to go into all that, but in my view, it is a bad system. It is inherently unfair. No matter how much money a business makes—or, indeed, loses—it still has to pay its rates, and that is absolutely wrong. A business could occupy a certain space and have only a couple of people working in it, but it could be making millions of pounds in profits because it provides an online service. However, that very same space could be a shop on one of our great high streets, which are frankly struggling. We all want our high streets to thrive. The shop might employ three or four people and have a much smaller turnover, but its rates will be exactly the same as those of the multimillion-pound business in the same space. I am sorry, but that is not fair. As I said, now is not the time to discuss this, but I think the Government get the issue. The trick is to find an alternative that still raises the same amount of money, which I accept is difficult.

[Mr Jim Cunningham]

I agree with a lot of what the right hon. Lady is saying. On average, small businesses with fewer than 10 employees could face an increase in rates of around £17,000 a year. Now, that is a lot of money and it could put many small businesses, shops in particular, out of business.

[Anna Soubry]

I thank the hon. Gentleman for his intervention. We must realise that small businesses are defined in different ways. There is a profound difference between the Government’s definition of a small business, which is any business that employs fewer than 250 people, and the many microbusinesses that so many of us have in our constituencies. We should not underestimate the benefit that many of them have had from the raising of the threshold to £12,000 a year, which has been a real boost. Of course, the difficulty is that many microbusinesses, which may employ five people or fewer, still face the burden of rates. Anything that the Government can do to improve their situation will be hugely welcome.

We do not know all the details of the revaluation yet because it will not be officially announced until March, but we know that the multiplier will be reduced and my office has been asking small businesses about the effect. While some businesses will undoubtedly benefit, my concern about the situation in Broxtowe is that some pubs may face a quite unbearable rates rise. We do not have all the details of the situation yet, but I know that the Secretary of State will want to know them and I will not hesitate to give them to him. We know the value of pubs. They are important to our communities, but they are also important to our economy. They are great small businesses.

There are also concerns that rates will be reduced for some supermarkets while other businesses that employ maybe five to 10 people will find that their rates increase. In Broxtowe, the change will be neutral across the board—not the 0.7% change in the letter from the Secretary of State and the Chief Secretary to the Treasury—but with inequities in who will have to pay more and who will have to pay less. For example, we think that some businesses in Broxtowe’s three retail parks may pay less. There is often a battle between the retail park and the high street, and we think that some high street businesses may pay more than businesses in retail parks. Retail parks have big businesses—Ikea, Boots and Mamas & Papas, for example. I am not saying that they can necessarily afford an increase in rates, but they can probably soak it up in a way that a small independent business cannot. I will provide the Secretary of State with any details as they come out, and I know that he will take them on board.

I have no doubt that the Government absolutely understand the real strains in our social care system. I welcome all that has been done, but much more needs to be done. I reject the use of the word “crisis”, which is horribly overused. Our services are strained, but they are not in a crisis. In Nottinghamshire, the Conservatives have made it clear that if we are successful in May and again gain control of the county council, we will use the good provisions that the Secretary of State has put in place to allow us to raise the additional 3% through the precept. We will do that to ensure that we can raise as much money for social care as possible. However, I gravely fear that the reality is that the Government need to put more taxpayer money into the system.

I spoke to the chief executive of Nottinghamshire County Council on Friday, and such is the strain, for all sorts of reasons—I do not have time to go into those reasons, and this is not the place in any event—that Nottinghamshire is unable to offer homes to unaccompanied child refugees because of the extraordinary cost required to ensure that they are kept safe. It is important that such children get the right services and placements, and so on. At the moment, Nottinghamshire does not have the resources needed to do the right thing by those unaccompanied children. As I said at the beginning, we have to bear in mind the real strains being put on our local authorities and our outstanding councillors.

Finally, I have spoken about unitary authorities, and I urge the Secretary of State to consider being even braver, to take the bull by the horns and say to councils, “Now is the time. You must become unitary.” That is the way forward for many councils in order to save money and, most importantly, improve services.

Armed Forces (Service Complaints and Financial Assistance) Bill

Debate between Anna Soubry and Jim Cunningham

Monday 2nd February 2015 Commons Chamber

[The Minister of State, Ministry of Defence (Anna Soubry)]

I beg to move, That the Bill be now read a Second time.

Our armed forces risk their lives to safeguard our peace and prosperity, and their welfare must therefore be a priority for any Government. This Government have shown their determination to meet their obligations to our servicemen and women and their families by enshrining the armed forces covenant in law and taking real action to improve the support available to our brave soldiers, sailors, airmen and women and, of course, marines.

We have given members of the armed forces priority in relation to health care, on the basis of clinical need, and we have supported their needs in relation to housing and school admissions. We have improved primary health care by integrating our single-service medical and dental centres. We have improved opportunities for service personnel to buy their own homes through our very successful Forces Help To Buy scheme. We have helped service children to find stability in schools by increasing funding for education to approximately £6 million a year, and we are helping service personnel to gain access to selected credit unions by providing payroll deduction.

We recognise, however, that the obligation to support our armed forces goes far beyond central Government, and I have been impressed by the willingness of others to play their part. Every local authority in Great Britain has now signed a community covenant pledging support for the armed forces communities in its area, and more than 360 companies—from big banks and supermarkets to small businesses—have signed the corporate covenant pledging their support. Together, they are providing employment assistance, guaranteed interview schemes, and backing for our reserves campaign.

Let me take this opportunity to thank all our local authorities. I wrote to each and every one, topping and tailing each letter. That seems to have paid off, because I have been inundated with responses from local authorities throughout Great Britain, of all political persuasions, describing in detail how seriously they take their commitment to the community covenant. I hope that all Members will now seize the opportunity to ensure that the covenant is delivered locally.

There is, however, no room for complacency. The Bill is intended to ensure that we continue to do the right thing by our armed forces personnel. It improves the system for the handling of complaints in the armed forces, and it ensures that we can provide funds for organisations that support the armed forces community, wherever they are based.

[Mr Jim Cunningham (Coventry South) (Lab)]

I am sure that the Minister will know that the people of Coventry and Warwickshire take particular pride in the welfare of their armed forces. Can she confirm the level of support she is getting from Coventry and Warwickshire?

[Anna Soubry]

I can. I cannot off the top of my head remember whether one of the many letters I received was from the two authorities, but I would not be surprised, if I can put it that way. I have genuinely been seriously impressed by the work that is happening in local authorities. I do not care what political party is running those authorities. I hope they sing this out, particularly if they are looking forward to elections.

--- Later in debate ---

[Anna Soubry]

We have set up the Help to Buy scheme. I hope that my right hon. Friend will forgive me if I cannot remember the exact figures, but I think that the scheme has now received nearly 3,000 successful applications. It has been hugely successful. In my limited experience, if members of our armed forces think that something is good, it will spread like wildfire, and that seems to be happening. The attitude that the Government take is that people should have a choice. Not everyone wants to buy their own home—it does not suit everybody—but we must give every opportunity to those who want to do so, because we believe in a property-owning democracy.

I have mentioned the House of Commons Defence Committee, and I want to pay tribute to its work over many years in advancing the cause of putting in place a proper complaints system and a service complaints ombudsman. I look forward to the ensuing debate with members of the Committee. I am sure that we will agree on many things, and that we can work together on them.

Clause 1 creates a new service complaints ombudsman to replace the existing Service Complaints Commissioner. Clause 2 replaces the existing service complaints system with a new and improved framework. I believe that it should be the armed forces that are responsible for dealing with any complaints from service personnel. That is the right way to do it. It is for the services to ensure that complaints are dealt with fairly and that the appropriate redress is given when complaints are upheld. When something has gone wrong, it is for the services to put it right. It is their responsibility and no one else’s.

The role of the ombudsman should therefore be to ensure that the systems are working effectively and that complaints are properly dealt with. The ombudsman’s oversight of the system will also put them in a unique position to identify lessons for further improvement, which will benefit individuals and the services more widely. The service chiefs are content that the proposals set out in the Bill strike the right balance between creating strong and independent oversight and maintaining the authority of the chain of command. The former Service Complaints Commissioner was also fully involved in developing the reforms.

A central feature of the new system is that the service complaints ombudsman, unlike the current commissioner, will have a power to consider whether a service complaint has been handled properly. If the ombudsman considers that there has been maladministration, and potentially injustice, in the handling of a complaint, he or she will make recommendations to the Defence Council to put things right. This could include, for example, reconsidering the complaint or rerunning a particular part of the process. The Defence Council will remain responsible for any decisions arising from the ombudsman’s recommendations, but it would need to give rational reasons for rejecting any recommendation.

The Bill also makes other changes. It gives service personnel the right to apply to the ombudsman if they believe that the handling of their complaint has been subject to maladministration. It will reduce the number of appeal levels, which will speed up the process while remaining fair. It includes a new process of assigning a complaint to someone who has the authority to deal with it and give appropriate redress. It gives the ombudsman a new role at an early stage of the complaints procedure. When the chain of command has decided not to allow a complaint to be considered within the service complaints system because, for example, it is out of time or excluded on other grounds, a service person could ask the ombudsman to determine whether that decision was correct. A decision by the ombudsman will be final. The ombudsman will have a similar role in respect of appeals decided as out of time. The ombudsman will also retain the vital role of offering an alternative route for a serviceman or woman who does not wish, or is unable, to approach the chain of command directly, to have their concerns fed into the system. That is an important safeguard, especially where there are allegations of bullying or harassment.

Finally, the requirement to report annually on the operation of the system will remain, ensuring that there is proper accountability to Parliament. I just wish to re-emphasise that the ombudsman has access to any Minister and any member of any Committee in this place and also has the freedom to go to the media, should he or she wish to do so. So, over and above the annual report, they have an unshackled freedom to report without fear or favour their findings in relation to any particular grievance.

[Mr Jim Cunningham]

Does that mean that there is a provision for whistleblowers in the armed forces?

[Anna Soubry]

With respect to the hon. Gentleman, that is a completely different issue. As members of the armed forces do not have the same access and rights as other workers, this Bill ensures that they have a rigorous complaints system, so that when they have a grievance, whether it is about an allowance or because someone is bullying or harassing them, they can make a complaint, which will be taken seriously and dealt with in an efficient and fair manner. If it is found that that complaint is right and it is upheld, there will then be efficient redress. So this is about individuals and their grievances. Whistleblowing is a different matter and does not sit within the service’s complaints, and I do not think that anybody would want it to do so.

May I now deal with the remainder of the Bill, which is, I am happy to say, uncontentious? I am talking about the financial assistance to organisations that support our armed forces community. The voluntary and community sector has a long history of supporting our services personnel, veterans and their families. Many of those groups are small and locally based and run by dedicated volunteers and they have the greatest understanding of the sort of caring and focused support that is needed. The Government need to work in partnership with those organisations and that includes providing financial assistance where appropriate.

Over the past four years, the Government have given £105 million to such groups to help them deliver the commitments of the covenant. That money has been used to deliver everything from veterans’ accommodation to short breaks for families with disabled children. The groups range from huge organisations—some of our greatest and biggest charities—right down to very small local charities delivering right at a local level.

We are also looking at how the future armed forces covenant grant fund, set at £10 million a year in future—it is set in perpetuity—will be managed. If we are to make the most of that money, we must ensure that it goes to the right places. Organisations working with the armed forces community are based throughout the United Kingdom and beyond, and we want them to be able to benefit from this money wherever they are located.

Under existing legislation, we can fund charities and make payments to local authorities that benefit serving personnel in Great Britain but not to veterans in Scotland. We have navigated those constraints on a temporary basis, but clause 4 enables us to deal with them in the long term by allowing payments to organisations anywhere in the world.

The Bill has already gone through detailed scrutiny in the House of Lords where there was widespread support for its aims. There was a clear consensus on the need for reform of the complaints system although there were, of course, different views on the detail of those reforms. In particular, there was extensive debate on whether the ombudsman should be able to investigate wider issues beyond those covered by individual complaints. I am sure that this will be discussed further as the Bill proceeds through the House. No doubt we will be hearing from Members on this matter. I am happy for them to intervene on me now. It is an important matter and I know that people feel very strongly about it. I do not have any fear about engaging in that debate, although I will not intervene on any speeches from Back-Bench Members if they make the points that I anticipate.

Oral Answers to Questions

Debate between Anna Soubry and Jim Cunningham

Monday 16th December 2013 Commons Chamber

[Anna Soubry]

I pay tribute to my hon. Friend, because I know that Professor Tim Briggs is his constituent, and that is why he so ably puts forward this report, which of course has much merit. Professor Briggs has met the surgeon-general, and we look forward to the report bearing fruit in due course.

[Mr Jim Cunningham (Coventry South) (Lab)]

T2. Last time I asked the Secretary of State a question about the reserves, he said that he had a better track record than me as Secretary of State, although as I have never been Secretary of State I could not have a better track record in that regard. When and why did the Government’s policy change so that reductions to regular forces are no longer contingent on an uplift in reserves recruitment?

Oral Answers to Questions

Debate between Anna Soubry and Jim Cunningham

Monday 4th November 2013 Commons Chamber

[Anna Soubry]

As ever, I express my grateful thanks to my hon. Friend.

[Mr Jim Cunningham (Coventry South) (Lab)]

10. What recent assessment the Government have made of how many reservists need to be recruited as part of the Army Reserve plan to replace regular troops from the disbanded units.