Birmingham: Waste Collection

Baroness Taylor of Stevenage Excerpts

Thursday 24th April 2025 Lords Chamber

[Lord Jamieson (Con)]

My Lords, I declare my interest as a Central Bedfordshire councillor. It is quite extraordinary that this issue that is blighting the lives of so many in Birmingham continues. Residents have been suffering with piles of rubbish and legions of rats. Birmingham’s own risk assessment highlights the potential health risks. Yet still the Government and the local Labour council have failed to sort out the problem.

We must look not just at this but at the future and ask what is being done to prevent this recurring. With reorganisation under way and councils across England now beginning to merge, there is a very real risk that duplication of roles and inconsistencies of pay for similar work will result in tension, resentment and industrial unrest. That scenario could easily become another Birmingham.

What specific plans are the Government putting in place to ensure that these local government changes do not give rise to further damaging disputes? In light of this, will the Government now commit to retaining the strikes minimum service levels from the 2023 Act rather than enhancing union powers?

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, Members across the House will be aware of the continuing disruption caused by this industrial action in Birmingham. The people of Birmingham sit at the heart of our determination to see this strike resolved as quickly as possible. I thank Councillor Cotton for speaking with me last week and for providing me with an up-to-date briefing this morning. The work has already begun on clearing up the backlog of street waste, and the council confirmed yesterday that that backlog has now been cleared. It continues to monitor and keep on top of it, and all households are now getting at least one bin collection a week.

Birmingham faces a specific set of circumstances, and no evidence has been put forward that this issue will spread to other cities. According to the National Audit Office, Birmingham saw a 53% decrease in government-funded spending power between 2010 and 2020. We ought to see some sign of recognition of the party opposite’s role in causing the problems that Birmingham has been facing.

The bureaucratic hurdles of the Trade Union Act do not and have not prevented strikes. Our Employment Rights Bill looks to Britain’s future. It is a pro-worker, pro-business and pro-growth Bill and will create an industrial relations framework fit for a modern economy.

[Lord Stoneham of Droxford (LD)]

My Lords, in my experience, it is not helpful to comment on the complexities of a dispute from a distance. However, I am sure everybody in this House supports the view that this dispute should be resolved soon in the interests of the residents of Birmingham and the reputation of Birmingham.

I go back to the previous question. Given the large reorganisation of local government that is in prospect, what are the Government doing to anticipate these sorts of disputes emerging as councils merge in the future reforms?

[Baroness Taylor of Stevenage (Lab)]

As I said before, Birmingham faces a specific set of circumstances here. Unite is striking against Birmingham City Council’s decision to reform the unfair staffing structures, and we have to think about the 7,000 women employees of Birmingham who were effectively underpaid. That is what the whole situation that Birmingham has faced has been designed to resolve. Many other councils across the country have already dealt with equal pay issues. They go back a long way in Birmingham and are now in the process of being resolved. I pay tribute to Birmingham City Council and the commissioners supporting it for getting on with delivering this pay structure review so that they can reform it for the future. All councils have had to face this challenge. Most have done so, and we will be keeping a careful eye as we go through the reorganisation programme to make sure it does not impact further on councils that are involved in that process.

[Lord Spellar (Lab)]

My Lords, I commend the Minister and her colleagues on the work they have been undertaking to get this dispute resolved, which is causing huge distress to the citizens of Birmingham. Does she share my surprise at the posturing of the Opposition Benches when it was the failure of the previous Conservative-Liberal Democrat management in Birmingham to deal with the equal pay issue that led to case after case at a cost of considerable billions to the citizens of Birmingham and left the current administration a toxic legacy which they are trying to resolve?

[Baroness Taylor of Stevenage (Lab)]

My noble friend is, of course, quite right to say that the leadership of the council until 2012 left not only the toxic legacy of not sorting out the equal pay issue but £1 billion-worth of debt, which is part of the issue that Birmingham is now having to deal with alongside the cuts to funding it had before. We are under no illusion about the financial issues facing councils, and we are determined to make progress on the inheritance we have been left. As he said, we continue to support the leader and his team in Birmingham, both directly and through the commissioners, to move the council on from those historic issues. Indeed, we have provided an increase in core spending of up to 9.8% for Birmingham for 2025-26. As we go through the spending review, we continue to look at how we might redress the long-standing deficit in funding that councils such as Birmingham have faced.

[Lord Hannan of Kingsclere (Con)]

My Lords, rats are spawned by DEI, are not they? They are the fell and monstrous product of equalities law. There was an utterly perverse ruling that said that although there was absolutely no sex discrimination, it was not allowable to pay people a bonus to do a job that people of either sex were otherwise willing to do. That is why Birmingham went bankrupt, hence the strikes and the rats. If we are serious about growth, do we not need to roll back this tendency for judges to legislate from the bench?

[Baroness Taylor of Stevenage (Lab)]

That was more of a rant than a question, but I will answer it anyway. Workers have the right to make representations, and the council must take all its workforce into account, including the 7,000 women who historically were paid far less than their male counterparts for equivalent roles. Every council has had to do that, and it is right and proper that they do so. It has been an enormous exercise. In my own council it took nearly three years to work through the process, but I was happy to do it. It is absolutely right that people doing equal work deserve equal pay.

[Lord Cryer (Lab)]

My Lords, the Minister touched repeatedly on the original cause of the dispute, which is equal pay. Did she say 7,000 women were assessed as being underpaid? On that basis, what is the cost of the compensation to those employees?

[Baroness Taylor of Stevenage (Lab)]

The costs are included in the issues that Birmingham is facing overall. We are working with the council on options to address those costs. The commissioners in Birmingham have been working very hard to do that. The additional £131 million funding we put into Birmingham this year will help to address some of the deficit it has faced recently. In fact, we included in our funding for Birmingham a new one-off recovery grant of £39.3 million, which shows our commitment to correcting unfairness in the funding system. We also put in place an in-principle agreement to exceptional financial support totalling £1.24 billion across the country. We are helping Birmingham with its financial issues, but they are of long standing. The overall funding formula we have been looking at as we go into the spending review across the country does not deliver funding in a way that delivers the best funding settlement to where the most need is. That is something we will have to address going forward.

[Lord Shipley (LD)]

My Lords, concern has been expressed about this situation arising again following local government reorganisation. When we discussed this matter in the Chamber previously, I suggested that one way of preventing it happening again was to revive the Audit Commission, which has not existed now for just over 10 years. I think it would help, and I am not sure whether Ministers have taken on board seriously the suggestion that an improved audit system is necessary in local government.

[Baroness Taylor of Stevenage (Lab)]

The noble Lord will know, because I have stated this before in this Chamber, how much I agree with him about the problems that not having an effective audit system in place in local government has caused. We need to reinstate a sound audit that the public can rely on to know that their money is being spent locally in a way that is accountable and transparent; that is an important part of the process. At the moment we are at the White Paper stage of bringing forward the English devolution Bill, and when we get the Bill it will contain information about how the audit system is going to be progressed.