Local Government Finance

Anna Turley Excerpts

Tuesday 5th February 2019 Commons Chamber

[Richard Graham (Gloucester) (Con)]

Earlier this afternoon, in your absence, Mr Speaker, we had a striking contrast in both the style and content of the Secretary of State’s presentation on local government financing and the Opposition spokesman’s response. On the one hand, we had someone calm and measured who, with his experience as Security Minister and as Secretary of State for Northern Ireland, has dealt with real crises, perhaps not least his own cancer. On the other hand, we had the hon. Member for Denton and Reddish (Andrew Gwynne), who was more purple than reddish with indignation as he made his remarks about how his party would never do anything to hurt the people. He said that we must grow the cake. We in Gloucester remember how Labour grew the cake, and he would do well to listen.

[Anna Turley (Redcar) (Lab/Co-op)]

Will the hon. Gentleman give way?

[Richard Graham]

No, let me make this point first.

I remember how Labour grew the cake in Gloucester: by shrinking the economy; by spending furiously on public services while 6,000 of my constituents lost their jobs in business, apprenticeships dried up, and engineering and manufacturing were on the verge of closure, as my Labour predecessor blithely ignored the fact that we had the second worst-performing secondary school in the country; by churning out youth unemployment; and by closing the King’s own post office. We know all about Labour growing the cake, going bankrupt, increasing unemployment—like all Labour Governments—and then complaining about austerity when Britain calls for the Conservatives to sort things out.

Let this House not forget that it was the last Labour-run—

--- Later in debate ---

[Anna Turley (Redcar) (Lab/Co-op)]

It is a pleasure to follow the hon. Member for Thirsk and Malton (Kevin Hollinrake), a fellow North Yorkshire colleague. He made some powerful and thoughtful points, in particular on the disparity of funding between the north and the south. I enjoyed his contribution very much.

This is the second time today that I have had to stand up in this Chamber to fight against the unfair and disproportionate funding that is leaving my constituents behind. The funding formula is leaving them at the bottom of the table. Areas that are more deprived, as we have heard from so many Members across the Chamber, are not getting the funding and support they need. There is clearly unfairness in the funding system. It is vital that we make that point today. The Government have to look at it again.

Redcar and Cleveland Council has lost £90 million since 2010. That is 35% of our funding. How on earth can a council be expected to continue to provide the level of service it wants to provide for its residents, particularly in areas like mine with high deprivation and high child poverty, when it has lost 35% of its funding? Residents are seeing and feeling the impact. As many colleagues have said today, we have seen a huge increase in the crisis of social care for adults and for those with disabilities. There are huge challenges around mental health support, particularly for young people, and there has been a rise in the number of children being taken into care. The situation is just not sustainable. Something has to give. The Government must look again.

In Redcar and Cleveland, we have lost 1,100 jobs in the past nine years. We have faced not just the tragedy of those individual job losses, but the knock-on effect of spending power being taken out of the community. On top of other job losses, that is just not acceptable. In 2010, I worked for a local government think-tank. The big pressure around the cuts was the argument that said, “Councils have reserves. They can dip into their reserves and the cuts will hardly affect them.” Redcar and Cleveland has already had to spend £14 million of its reserves on trying to balance the books. There is nothing left. The cuts are going to the bone.

On top of that, Redcar and Cleveland lost business rates in the region of £10 million when we lost our steelworks. This is simply not acceptable. I have spoken to Ministers about the unfair system where Redcar and Cleveland was asked to pay £2.6 million for business rates relating to an industrial property that was revaluated that never even crossed its desk. It is not acceptable that Redcar and Cleveland has had to pay for business rates it never actually saw.

One in four children in Redcar and Cleveland are living in poverty. One in 10 four and five-year-olds are classified as obese, and that doubles by the age of 10 to 11. Currently 300 children—one in 10—are looked after. That has risen 35% since April 2017—a 35% rise in just two years.

I thank Sue Jeffrey and the Labour team in Redcar and Cleveland for their excellent work. They have done a superb job of dealing with the implications of the devastating cuts, protecting people on the frontline and supporting the most vulnerable people in our communities. They have kept our five leisure centres and all our libraries open. They have bust a gut to look after the poor and the needy. They are doing a superb job with both arms tied behind their backs.

Councils are at breaking point and this settlement gives the people of Redcar and Cleveland nothing. When people are already having to pay more council tax—an unfair tax—they are paying twice for services that are being cut to the bone. That cannot continue.

[Mr Speaker]

Four-minute speeches are now preferable—much more preferable.