(10 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you, Mr Sheridan, for calling me to speak. It is a pleasure to serve under your chairmanship today.
First, I thank the Communities and Local Government Committee for securing this very important debate, which, ultimately, is on the way that public services can, and I would argue should, be delivered in the future. I particularly thank the Chairman, the hon. Member for Sheffield South East (Mr Betts), for the Committee’s delivering an excellent report on the community budget pilots. It highlighted the importance of ensuring that the pioneering work of those pilots is adopted across the country.
Before I turn to the Chairman’s well thought-out and strong speech, which touched on many issues that, as he rightly said, we agree on, I will just deal with a couple of the issues raised by the hon. Member for Corby (Andy Sawford). He said relatively little about the topic of the debate—community budgets—and went into asides on local government finance and other issues. I suspect that he had little to say about community budget pilots because he believes we are doing the right thing. I know that on many such issues there is cross-party agreement, but on some, there is not, and I will come back to all those later.
The hon. Gentleman raised an issue in respect of which I must put something on the record. I think he said that there had been increased resources for local government under the last Government. I will put to one side the question whether that indicates that he shares the shadow Chancellor’s view that more borrowing and more debt is the way forward for this country, even though that was what got the economy into difficulties in the first place; I would not tout that as a good approach. However, he was somewhat remiss in not reminding us that council tax basically doubled under the last Government, hitting hard-working people hardest.
The hon. Gentleman represents an area that has a couple of the most deprived wards in the country, and which received the highest top-up in the country from this Government after being left with a black hole because of the last Labour Government’s decision on the working neighbourhoods fund. It is important to remember that the councils that are in the toughest positions and that have the highest levels of need, which he outlined, are also those that have the highest spending power per household in the country.
However, I appreciated the hon. Gentleman’s comments about the report, “50 Top Achievements by Labour Councils”, which he recommended as bedtime reading. I would not be so churlish as to suggest that when I am struggling to get to sleep, it might well help. However, I will happily have a look at a copy and keep it under the coffee table for the future.
I come now to the serious and key point of the debate. There are some issues on which we disagree—I will come to those later—but on many we agree, as the Chairman of the Select Committee said himself. Crucially, we agree about what we want to achieve, which is a transformation of public services for, and better outcomes for, residents. Our constituents deserve better and more cost-effective services that are designed to meet their needs. As I think the Chairman of the Select Committee said, we should be able to get more for less. I agree, but at the moment not all organisations are delivering in that regard.
It cannot be right that our elderly residents should find themselves in hospital because of a lack of support to live independently at home. Not only would they rather be at home, but supporting them in the community and thereby reducing hospital admissions will save the taxpayer money—exactly fitting the point made by the Chairman of the Select Committee.
It is also not right that a family in need of support should be contacted by countless different public sector organisations, all acting independently of one another. This confused approach does not help family members to get work, stay in school or stay away from crime, and nor does it help them to achieve the right outcomes. It means that the costs of antisocial behaviour, crime and unemployment continue to fall on the taxpayer. The family, and taxpayers, would be far better served if those organisations could come together to provide integrated services designed around the needs of the people who use them.
As the Committee’s report highlighted, the pioneering work of the community budget pilots proved that that is possible and is already happening. Cheshire West and Chester’s early support team brings together social services, police, probation, health and other services. Let me give just one example. A young mother—let us call her Emma—visited a children’s centre to ask for help with benefits and some family support. Separately, she had called the police after her partner, following an all-day drinking session, had violently attacked her. Both these incidents were picked up by the early support team, and following a 360-degree profile of the family, they discovered that Emma’s partner had a history of domestic violence and that probation had previously judged him to be a risk to children. By working together, these agencies were able to identify quickly that Emma’s children might be at risk. Under the old way of working, the children’s centre would have known only what Emma had told them, and she had not told them about her violent partner. Under the old system, it might have been weeks, even months, before family workers realised how at risk Emma and her children were. That is not helpful and it is not right, and it is what none of us wants to see.
The Government wholeheartedly support change and that type of approach. We want to see that approach being adopted by every local area, so that everyone in our country can benefit. That is why we have put in place the support to ensure that others can build on what has already been achieved. Thanks to the hard work and evidence provided by the 12 neighbourhood community budget pilots, we have committed, for example, an additional £4.3 million “Our Place” fund for 2014-15, so that at least another 100 areas can design services with their communities.
The Select Committee called for the Government to provide pump-priming funding to ensure that the community budget approach was implemented more widely, and that is what we have done. Others have suggested that the Government have paused that work until after the next election. Clearly, that is not correct. We have already provided a £6.9 million transformation challenge award, which is helping partners in 18 councils work together to deliver better services.
I am encouraged by the Minister’s remarks on Departments working together. I shall just pick up on the point made by my hon. Friend the Member for Sheffield South East (Mr Betts), about how successful the Minister’s Department has been in persuading other Departments to break down the silo mentality. Ever since I have been involved in, or had an interest in, local government, breaking down the silo mentality has been the holy grail. Will the Minister say how successful he has been in breaking down silos?
I thank the hon. Gentleman for his helpful intervention, which gives me a chance to highlight how this is a whole-Government approach. If he will bear with me, I will, in a few moments, outline how Departments are coming together to ensure that these things are being delivered, as appropriate to the local area.
The funding from the transformation challenge award will, to name just a handful of projects involved, help to improve children’s services in south-west London, integrate emergency services and speed up response times in Surrey, and reduce crime in Cheshire. We have announced various measures further to support transformation, including a £100 million new collaboration and efficiency transformation fund and new flexibility to allow £200 million of capital receipts to be spent on the one-off costs of service reforms. In addition, in 2015-16, £30 million will be available for fire service transformation, £50 million for police transformation and £100 million for innovation in education.
The whole-place community budget pilots also highlighted non-financial barriers to partnership working, such as difficulties of data sharing, as the Select Committee Chairman rightly mentioned. I share his concerns about and frustration at the potential for real progress and change to be blocked in that way. I am determined that this Government will find a way through these myriad difficulties. Historic breakthroughs have been made in data sharing by the Troubled Families programme, for example, through which Department for Work and Pensions data have been safely shared with local authorities. Barriers to data sharing are as much to do with people’s perception of legislation as the legislation itself. For example, the “Data Sharing Act” might have been a better name for the Data Protection Act 1998. In working with fire and rescue authorities, which do great work in their communities, we often find that we need to weed out mythical understanding of something in that Act which somebody in a particular authority has found, to ensure that we get data sharing working correctly.
The Committee Chairman tempts me to prejudge what the Chancellor may decide, but he will understand if I resist him for now. The Treasury is looking at the issue and understands the importance and benefits of long-term work and giving budgets in the way that I have outlined.
I am grateful to the Minister for giving way again; this is my last intervention, I hope, subject to what he says. In relation to long-term certainty, working together and sharing budgets, does the Minister agree that there is a need for much greater investment in social care? Is thinking about that being done in Departments? Investing in that would save spending further down the track, by preventing people from going into much more expensive hospital care or long-term nursing care. To make savings in the future we need to invest in the present, and that means putting a lot more resources into social care. Does the Minister agree? Can we be confident that the thinking being done will deliver that?
I will not hold the hon. Gentleman to his promise about that being his last intervention; I would not want to curtail any further insights. He does not make an unreasonable point. I will mention the important issue of social care and where it may lead in a moment; it is linked in respect of the better care fund, for example. However, as I said in opening, it is true that if we can have a better service up front, people might not necessarily need emergency and hospital care. That would be better for them and mean lower costs for their areas. The Committee Chairman mentioned the potential for being a midwife; if my Department in its current format ends up being the midwife to public services working together in future, I will be proud of what we have achieved in our time in office.
The pilot areas highlighted the importance of the secondees. The Government are committed to the approach, which is why we created the public service transformation network, which has 30 officials and counting seconded from around Whitehall and local government. They are now working with the nine new areas, but they are not the be-all and end-all. It is a rolling programme. The secondees are helping the areas to learn from the pilots and quickly create a better outcome for service users; it is an evolution of what the pilots delivered.
Some areas are picking up themes similar to the ones the pilots picked up. Each area has its own focus, depending on its circumstances and the needs of its local residents: localism in its true sense. In Bournemouth, Poole and Dorset, the focus is on integrating and improving services for elderly residents and for those with mental health or learning problems. Better support for those seeking employment or training is the priority for partners in Lambeth, Lewisham and Southwark, and for the six boroughs within the West London Alliance, which are working superbly well together to deliver there.
I have already mentioned Surrey’s plans to integrate local emergency services, as Northamptonshire has done, but it also wants young people in their area to receive better training and education. In Swindon, partners want to create safer communities and, in particular, give better and more co-ordinated support to victims of domestic abuse. Residents in Bath and north-east Somerset could benefit directly, with more money in their pocket, thanks to the work of local partners and the Department of Energy and Climate Change to improve energy efficiency in local homes.
I have barely begun to scratch the surface of the work going on in those places. I urge colleagues to take a close look at those projects when the network’s website is launched in just a few weeks’ time. People might see something that they think should be happening in their own constituency; that touches on the point raised by the right hon. Member for Greenwich and Woolwich (Mr Raynsford) on sharing data and best practice. Better services are not the preserve of people living in pilot areas or in one of the nine areas that are working intensively with the network. Those areas are there to share best practice. We want to learn from them and to see other areas move, too.
I agree completely with members of the Select Committee that local areas should not be held back or discouraged from proceeding with service transformation. Much of that can be done without any assistance from central Government, because it simply requires local partners to sit down, forget their differences and focus on the outcomes for residents. Partners in Staffordshire, Leeds city region, Blackpool, Tyneside, Cornwall and Suffolk are getting on with plans to improve services for residents, and others can do the same. Much can be learned from the excellent work in Suffolk, where the county council is working with district councils to share management and services. If there are barriers, gather evidence and let us know. We have already shown that we are ready and willing to aid the process by changing the way government works.
I want specifically to address the idea that the work of the community budget pilots is somehow unconnected with other important areas of policy or that big Departments are not engaged. We must not get caught in the trap of thinking of community budgets and service transformation as an initiative cut off from other Government projects, work and reforms. The principle of neighbourhood and whole-place community budgets is simple; it is about partnership working across public services, local and central, to create not just cost-effective services but services designed around people rather than structures and organisations. The same principle is at the heart of the troubled families programme, the integration of health and social care budgets, the pooled local growth fund and many more areas of work; it is not a top-down exercise. We are working closely with local partners and others on the design of the expanded programme.
The troubled families programme, for example, is being extended, as the Select Committee noted, to an additional 400,000 families over five years, with £200 million already committed for the first year in 2015-16. The hon. Member for Corby asked about the assessment of the programme, which is subject to a three-year independent evaluation. Initial findings are due later this year.
On health, it was partly thanks to the hard work and the evidence provided by the four whole-place community budget pilots announced by the Government that we could develop the £3.8 billion better care fund in the spending round. Health and social care services are already working together to ensure that our elderly residents receive the support they need to stay at home and out of hospital. We have also established a network of 14 integrated care pioneers that will, like the community budget pilots before them, work closely with central Government to develop the solutions that others can then adopt. Locally led public service transformation also has the potential to promote economic growth.
Although I understand that the Select Committee and the Essex pilot are disappointed that not all of Essex’s whole-place proposals were adopted—the Essex pilot was particularly commented on—it is possible that such areas can do far more within existing Government policy. Essex has done great work in establishing an employment and skills board that involves local employers and skills providers, and the board’s labour market intelligence has already influenced millions of pounds of capital investment by further education colleges.
A number of the nine new places are reviewing how skills and employment support is provided, and the network is working with the Department for Business, Innovation and Skills, Jobcentre Plus, the Skills Funding Agency and the Department for Work and Pensions. Again, the support is not just for the select few.
Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
As I said to the Chair of the Select Committee, the hon. Member for Sheffield South East (Mr Betts), we use spending power not only because local government has talked to us about using it but because it gives the whole picture of spending power in a local area, rather than just the grant. That is what impacts on the services that residents get, and that is what matters to people.
Derby city council is already reeling from the unprecedented cuts that have been imposed by this Government since they came to power, yet under this settlement it will have to find another £81 million of cuts from its budget, and it will soon be unable to fund even its statutory obligations. Will the Minister advise the council on which statutory services it should cut? Should it cut services for vulnerable children, or services for vulnerable elderly people? It will not have the resources to fulfil all its statutory obligations.
The hon. Gentleman highlights part of the problem for some local authorities. First, I want to thank him for being one of the great advocates of spending power, and I am sure that he will thank us for ensuring that we make it clear why that matters to people in terms of the services they get. He was right about that, and we have listened and put that formula forward. I know that, if his local authority is playing political games with people’s money, he will want to fight for his local residents and go back to his authority and tell it to think again. If the councillors and officers cannot make the right decisions to look after their local residents, they should step aside and get somebody in who can.
I will respond first to the new clauses tabled by the hon. Member for Corby (Andy Sawford) before addressing those tabled by the hon. Member for Hayes and Harlington (John McDonnell). I will then consider the Government amendments in this group.
New clauses 1 and 2 and amendments 13 and 12 cover familiar ground which, as the hon. Member for Corby noted, we debated at some length in Committee. New clause 1 returns to the issue of integrated audit and seeks to enable auditors to work across local authorities with the National Audit Office. I support the principle of audits being undertaken efficiently and effectively, but I do not consider that the new clauses are the right approach, or that they are necessary to support bodies in working jointly or sharing services or budgets.
The public audit framework is designed to provide assurance about how each public body has used its resources. Individual public bodies are separately accountable, and because each is accountable for its decisions and expenditure, every one is required to produce a set of accounts and have an independent audit. I do not believe that the current accountability structure prevents local auditors from auditing relevant authorities cost effectively, or that it prevents authorities from working together to share services or budgets. The requirement to have a separate audit has not been highlighted as a problem in the four areas with which the Government have been working to explore service transformation and joint working via a community budget. Neither did the Public Accounts Committee raise external audit as a barrier in its report on integrated working by Government Departments and via community budgets.
Auditors are already required by the code of audit practice to have regard to partnership working that local government and health service bodies operate, to share information and co-operate with other auditors, and to minimise the burden of regulation on audited bodies. The Financial Reporting Council’s auditing standards also state that auditors should rely on the work of other auditors where appropriate, and guidance is available to support auditors making that judgment.
The National Audit Office supports Parliament to hold Government Departments to account. It does not have a role in auditing expenditure by local public bodies, and it does not wish to have one. The NAO already carries out a number of national value-for-money examinations under existing legislation, and the Bill broadens its powers to enable it to examine all or groups of relevant authorities. That will enable a more end-to-end view on the use of public money. It will not enable the NAO to undertake examinations of individual authorities, but it will be able to look at any thematic or systemic issues across a number of relevant authorities. For those reasons, we consider that the new clause is not needed.
There has been a lot of discussion about provisions in new clause 2, both in the other place and in Committee. As I said in Committee, we believe the new clause is not necessary to enable auditors to access all the information they need because the Bill already does that. Clause 22 mirrors the provision in the Audit Commission Act 1998, and enables auditors to access every document they need in order to undertake their statutory functions. That includes all documents held by local authority contractors which the auditor considers necessary to undertake an audit.
The Government also believe that it is not necessary to apply the Freedom of Information Act to documents an auditor has obtained from a contractor. Rather than extending that Act to documents an auditor has obtained from a contractor, the Government’s preferred approach is through the transparency agenda, existing rights of local people, and our planned revision to the freedom of information code of guidance. Local people can already access information about contracts. The Bill maintains local people’s current extensive rights to inspect detailed accounts, accounting records and audit information, and to ask the auditor questions and raise objections. Those rights enable local people to access more information than the proposed new clause would.
Does the Minister agree that perception is important, and that by not subjecting private sector auditors to the Freedom of Information Act, the wider general public could feel that they will not be able to access information that was previously available under the Audit Commission? Does the Minister believe he has an obligation to be seen to be doing the right thing, as well as giving those assurances at the Dispatch Box?
What is important—I think this is what the hon. Gentleman was trying to say in a roundabout way—is to do the right thing, not what might look like the right thing but may not be. Local authorities are subject to the Freedom of Information Act, but I will continue my remarks so that he fully understands the point about how people can get to information.
It is absolutely right that the Government are driving forward the transparency agenda so that auditors have access to the information they want. That is why it is important that if people ask questions, the auditor may gather even more documentation to investigate the issues. That goes further than the Freedom of Information Act, which would require the auditor to provide information it holds but not lead it to seek additional material.
Last week, the Government published their response to the consultation on the transparency code. It set out their intention to make regulations requiring local authorities to publish specified pieces of information, including contract details exceeding £5,000. Local authorities also monitor the delivery of their contracts and are subject to the Freedom of Information Act 2000. The Government consider that a better approach would be for contracts to include provisions that require contractors to assist local authorities in meeting their Freedom of Information Act obligations—thereby satisfying the point raised by the hon. Gentleman. That decision was taken following the Justice Committee’s post-legislative scrutiny of the Freedom of Information Act, which recommended that greater transparency through contracts would provide a more practical approach than extending that Act to companies directly.
In principle, yes, but it is not for me to prejudge how a local authority would contract. If it chose to contract in that way, of course that would be a matter for it. It would be entirely possible.
That response is instructive. I think the Minister is saying that in certain circumstances that information will not be available in the way it is currently available. It seems it will be down to the local authority. He said he met with Transparency International. I wonder if he would comment on its key recommendation:
“Amendment should be made to the Bill to ensure that the work conducted by auditors will be subject to the Freedom of Information Act, and that auditors will be allowed to access documents from significant private contractors that a local authority has used.”
The right hon. Gentleman keeps asking for evidence, but my hon. Friend the Member for Bromley and Chislehurst has given it to him. In addition, I suggest the right hon. Gentleman compare Leeds city council’s website with the Labour party website.
The Government are aware of the burden that placing statutory notices in newspapers can place on local authorities, and that some authorities believe there are cheaper and more effective ways of informing local people on issues that affect their lives. The Secretary of State has been clear that, in the internet age, commercial newspapers should expect, over time, less state advertising as more information is syndicated online for free. Local papers need to develop new business models to fit the 21st century, particularly as it does not make sense to cross-subsidise one industry with fees from another. However, that will take time.
The Government’s council tax referendum measure will give protection against large increases in taxes raised by levying authorities such as waste disposal, integrated transport and pension authorities. Some say that the measure is unfair. I dealt with that earlier in my speech, but let us be clear that local authorities and levying bodies can work together and have done so, both under the old Government capping procedure, and more recently through the referendum principle. Councils have long worked together to agree council tax levels. That was always the case under previous systems.
Will the Minister at least acknowledge that levying bodies could, if the referendum goes against the council tax increase, result in even bigger cuts in the local authorities affected? Surely he must accept that.
I do not accept that. The hon. Gentleman tried to make a good argument for his point of view—he wants more councils to increase tax—but the Government believe in freezing council tax and in keeping the cost of council tax down for families. We are unlike the previous Government, under whom council tax doubled. He made the argument for letting council tax spiral yet again, but I am afraid the Government do not agree with him.
The Government have made it clear that there has been no agreement to allow excessive increases in council tax without a referendum as part of a city deal. City deals are important, but they are also subject to the referendum principles. The largest estimate for a city levy in Leeds is still well below the 2% referendum principle—it is between 0.2% and 0.9%.
The House will decide shortly whether it consents to the Government including measures in the Bill to modernise the rules governing parish polls and to increase the transparency of council meetings. At the request of the other place, we are seeking to amend the Bill to include measures on parish polls, because they need to be modernised to bring the archaic process up to date, and to ensure they provide a legitimate method for local communities to have a voice on issues that directly relate to parish matters.
The widening of the Bill’s scope creates the opportunity to tackle not only parish polls, but problems with the transparency of council meetings. Those important measures will increase local accountability, strengthen local democracy and save taxpayers money. I appreciate the co-operation of the hon. Member for Corby on the matter and how he has worked with the Government to bring the measures forward. We will doubtless have further discussions on them in Committee, but town hall doors should be open to bloggers, tweeters and those who want to film and report on meetings. We will discuss that further in a few minutes.
It is a pleasure to serve under your chairmanship, Madam Deputy Speaker—this is the first time I have spoken at the Dispatch Box with you in the Chair. I hope the House sees fit to support the Bill.
Question put and agreed to.
Bill accordingly read a Second time.
LOCAL AUDIT AND ACCOUNTABILITY BILL [LORDS] (PROGRAMME)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Local Audit and Accountability Bill [Lords]:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 21 November 2013.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
(7) Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed.—(Mark Lancaster.)
Question agreed to.
LOCAL AUDIT AND ACCOUNTABILITY BILL [LORDS] (MONEY)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Local Audit and Accountability Bill [Lords], it is expedient to authorise the payment out of money provided by Parliament of:
(1) any expenditure incurred by a Minister of the Crown or the Comptroller and Auditor General in consequence of the Act; and
(2) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Mark Lancaster.)
Question agreed to.
LOCAL AUDIT AND ACCOUNTABILITY BILL [LORDS] (Ways and Means)
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Local Audit and Accountability Bill [Lords], it is expedient to authorise:
(1) the charging of fees in connection with the recognition of qualifications and supervisory bodies and of periodical fees to be paid by recognised qualifying and supervisory bodies, and
(2) the payment of sums into the Consolidated Fund.—(Mark Lancaster.)
Question agreed to.
(11 years, 2 months ago)
Commons ChamberI thank my hon. Friend for his kind comments. As he will know from the excellent work that he did in negotiating with the Fire Brigades Union for the first two years of this Government, the issue of fitness and capability is for the employers to resolve, not the Government. I am pleased that we were able to facilitate the parties in coming together and I hope that they will come to a conclusion that ensures that firefighters have one of the best pension schemes in the public sector.
The Minister responsible for the fire service has not been doing his job. First, he wanted to privatise the fire and rescue service; then he imposed reckless cuts on it. Now he is suggesting that the fitness standard should be lowered so that front-line firefighters can be forced to work until the age of 60. Does that not display contempt for these courageous public servants who risk their lives to keep us safe? Does he not agree with me that it would be more appropriate if he did his job? If he had done it properly in the first place, the dispute could have been avoided.
The hon. Gentleman does himself a huge disservice in the way that he puts the question, for a couple of reasons. Putting aside the fact that the retirement age of 60 came in under the Labour Government in 2005, the issue about fitness and capability is, as I have said, for the employers and the Fire Brigades Union to resolve. I am delighted that we have brought them together.
What I actually said was that the Government supported mutuals and co-operatives. What Cleveland fire authority does is a matter for the authority itself. I note that the Labour party does not support mutuals now, which is surprising given that a Labour authority wants to mutualise. I commend the authority for having looked at new ideas, but it really is for Cleveland fire authority to decide how it should proceed.
It seems from the Minister’s answers that either he is in denial or he does not understand the measures that he is seeking to introduce. As for the Ken Knight review, on page 74 he explicitly recommends privatisation. [Interruption.] I am afraid he does. [Interruption.] The hon. Member for Bromley and Chislehurst (Robert Neill) ought to look at the report. [Interruption.] I have read it.
Will the Minister now concede that procurement law requires any fire and rescue authority that opts to mutualise its services to re-tender those services periodically and open them up to the private sector?
I am sorry that the hon. Gentleman was not here for the debate on Cleveland fire authority, when we said explicitly that we were not going to privatise the fire service. We cannot allow something to be introduced that would allow that. We have been categorical about that. To be clear, he should take care to read Sir Ken Knight’s review, which is superb and has given us a lot to discuss but does not make a single recommendation.
I just did. The Labour party is giving out information that is simply not correct. We are looking to work with an area such as Cleveland, for example, where the Labour-led fire authority wants to mutualise. We think that mutualisation is good and the right thing to do, so I am disappointed that the Labour party seems to be turning away from co-operatives and mutuals. I would have thought it supported them, given the discussion in a recent publication by the Co-operative party containing a foreword endorsed by the leader of the Labour party.
Nobody believes the housing Minister—the fire Minister, I mean, although I do not believe the housing Minister either, given his answers to previous questions. Nobody believes the fire Minister when he says he has no plans to privatise the fire and rescue service. After all, the Conservative party has form on this. If he does not want to privatise it, why did he write to the Regulatory Reform Committee seeking its views
“on our proposals for a Legislative Reform Order that would enable fire and rescue authorities in England to contract out their full range of services to a suitable provider, including a public service mutual...or other appointed contractor?”
(11 years, 10 months ago)
Commons Chamber I congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on securing today’s important debate. It seems ironic that the first time I am at the Dispatch Box at this time of night since the last time I was here at this time of night, we are debating rural areas looking for fair funding. Last time, it was about urban areas, and Newcastle Members and others made the same sort of case for those areas.
I shall have to keep my remarks relatively short, as the hon. Member for Derby North (Chris Williamson) talked for some time, and I want to ensure that my hon. Friend the Member for Tiverton and Honiton gets the chance to sum up. If I do not cover everything Members have brought up this evening, I would be happy for them to come and see me—now or over the next few months—as we continue to argue passionately and with great determination over the issues raised tonight. However, as one of my hon. Friends commented a few moments ago, the tone of the debate changed dramatically when the hon. Member for Derby North decided to avoid the fact that it was the last Government who had pledged £52 billion in local government cuts. Labour Members have seemed not to want to discuss that in any way, while opposing every change and every reduction that we have introduced to deal with the deficit that we inherited from their Government. That cannot give any credibility to what they say about the money that is needed for local authorities.
The hon. Gentleman spoke of standing up for local government. What he should have observed tonight, and over the past few weeks, is the Secretary of State and other Government Members standing up for their local residents, for their communities, and for the hard-working taxpayers for whom we have introduced the council tax freeze option.
In that spirit—the spirit of Government Members standing up for their communities —will the Minister invite the Secretary of State to stand up for local government throughout the country, and argue with the Treasury the case for giving it a fairer share of the cake? Does he accept that its funding has been cut by 28%, which is a far larger reduction than any imposed by other Departments?
I thought that the hon. Gentleman had something to say that was different from what he had already said. Again, he avoided mentioning the £52 billion of cuts that his party had pledged to make. My point is that Government Members, including the Secretary of State, are standing up for the people whom we are elected to stand up for—the hard-working residents who will benefit from the council tax freeze that this Government are providing.
Let me say in the few moments that I have left that the thinking behind this local government financial settlement took into account ways in which councils can make progress in the years ahead, and that we believe it to be fair to both north and south and to both rural and urban communities. As others have pointed out, we have managed—although, I recognise, not to the extent that some would have liked—to reduce the gap between rural and urban. We have made adjustments to relative needs formulas to reflect the greater cost of providing services in rural areas. That is one of only three formula changes in the settlement. We have increased the weight of super-sparse areas in the formula, doubled the sparsity weight for older people’s social care, reinstated the sparsity adjustment for county-level environmental protective and cultural services, and introduced a sparsity adjustment for fire and rescue. As a result, funding per head is falling by less in predominantly rural authorities than in predominantly urban authorities, in all classes.
(11 years, 10 months ago)
Commons ChamberI am happy to congratulate Kent fire and rescue service on its work. When I visited its headquarters recently, I observed some of the innovative work that it is doing in both protecting the front line and making savings by, for instance, sharing its call centre with the police. I hope that fire services across the country will learn from that innovative way of working.
The average spending power reductions are 14.5% for metropolitan fire authorities and 7.5% for combined fire authorities. That has resulted in fewer appliances, fire station closures, reductions in fire-prevention work, and an increased response time in certain areas. However, the fire Minister wrote to me last month that
“savings should be made without… affecting…frontline services.”
As Winston Churchill once said, “The truth is incontrovertible.” Will the Minister now accept the incontrovertible truth that his cuts are adversely affecting front-line fire and rescue services?
In the interests of absolute truth, let me reconfirm that the reduction in spending power for fire and rescue authorities was 2.2% for 2011-12 and 0.5% for 2012-13. As was said earlier, that moves to 4.7% in 2013-14, with the back-loading, and to just 3.3% in 2014-15. Those figures are slightly different from the ones given by the hon. Gentleman.
Surely the Minister must agree that the Government’s counter-productive austerity measures are only making matters worse. They have sucked demand out of the economy by cutting too far and too fast, exacerbating the decline of the pub trade. To make matters worse, his predecessor scrapped the community pubs initiative, which was worth £3.5 million. Does he not understand that the public want real action, not warm words and crocodile tears, from Ministers, who have abdicated their responsibility to the local communities they are supposed to serve?
I was waiting for the hon. Gentleman to talk up the great British pub, which is a superb facility for local communities, but clearly he does not share that view. When he stands up to talks about cuts, he might want to think about outlining the £52 billion of cuts Labour projected it would make in the Department, even though it is yet to support a single thing the Department has done to reduce the deficit.
(12 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank my hon. Friend for her intervention. I was about to turn to the difference between Bellwin schemes and capital expenditure. As I said, a Bellwin scheme covers only the costs of immediate action to safeguard life and property. Payments made under the last Administration—for example, in 2008—with which I think her local authority is making comparisons, were not Bellwin grants; they were to cover cost recovery from an exceptional event. I will turn to that in a moment.
A Bellwin scheme typically covers the costs of evacuating people from dangerous structures, and works to make them safe following a disaster; temporary re-housing; and initial repairs to, and the clearing of debris from, highways, pavements and footpaths. Let me make it clear—this may provide clarification for my hon. Friend—that it does not usually cover capital expenditure; the normal wages and salaries of an authority’s regular employees, whether diverted from their usual work or otherwise; and the standing costs of an authority’s plant and equipment.
Although a Bellwin scheme is discretionary, it has a statutory basis. As a Department, we must therefore ensure that the terms of each scheme and the eligible costs comply with the legislation. In particular, the statute sets out that expenditure must have been incurred on, or in connection with, immediate action to safeguard life and property or to prevent suffering or severe inconvenience. The idea of a Bellwin scheme is to put local authorities in a position to take speedy emergency action, to protect people during and immediately after an incident and to deal with the immediate catastrophic consequences.
Clearly, the statutory basis of the schemes means that longer-term works of repair or restoration will be ruled out, because they fall into the recovery stage rather than into that of immediate action. Although Ministers have previously used their discretion to enhance some of the Bellwin scheme terms—indeed, we have done so in relation to these incidents by extending the percentage of grant payable above the threshold, as others have said—we must continue to have regard to the legislation. Permanent repairs to roads and bridges would not therefore be eligible, but initial repairs and patching up works are fine.
Will the Minister comment on the fact that, as he has conceded, the last Administration funded local authorities over and above the Bellwin formula? Given the parlous state of local government finance as a result of reductions in funding, does he not agree that it is even more imperative for his Administration to look sympathetically on local authorities facing such exceptional costs? They simply do not have the resources to meet such expenditure under their funding regime.
I agree with the hon. Gentleman in the sense that it is a shame that we inherited the parlous economic state in this country, and have therefore had to make decisions about how to sort out the debt and deficit problems left by the last Labour Government. I will turn to the capital situation in a moment. We have sometimes faced calls for Bellwin schemes to be amended or refreshed, but we remain committed to the terms outlined in statute. The scheme has the necessary flexibility, and it continues to be well-known and well used by local authorities.
Let me turn now to North Yorkshire. I am aware that the colleagues of my hon. Friend the Member for Thirsk and Malton from North Yorkshire county council registered a possible intention to apply for Bellwin support in September. My officials have requested further information to support a possible activation of the scheme and we await the council’s response. I understand that the council now considers that it will not be eligible for the scheme because the costs will not be above the Bellwin threshold. However, as allowed under the Bellwin rules, we will record costs for any future claims if further flooding occurs later in the financial year.
I know that hon. Members are keen to understand why the Department has not considered launching a recovery grant scheme, which has occasionally happened in previous years, most notably following the significant and widespread flooding events of 2007. Let me be clear—I appreciate that this is not an easy message to relay to constituents—while the flooding incidents of this summer were locally significant, we did not witness the devastating effects of previous years. Despite the individual stories of loss that we have heard, and our sympathy for those affected, the flooding this year has been on a much smaller scale overall.
Let me put the matter in context. In 2007, 55,000 properties, both houses and businesses, were flooded compared with only 4,000 this summer. The events on those two occasions are not comparable and the response, therefore, must be proportionate. Although we have activated a Bellwin scheme, we have not considered the need for a wider recovery grant. None the less, I will, in a moment, touch on the capital expenditure for roads and highways.
Successive Governments have used the Bellwin scheme as a benchmark, and we are doing the same. If we were to experience flooding on a larger scale, we would doubtless consider further Government support. For now, the balance has been appropriately struck between our Bellwin scheme, boosted to 100% of costs above the threshold to reflect the particular circumstances of the June and July flooding, and local support.
Thanks to the Government’s continued investment in flood defences, some 19,000 properties have been protected from flooding. In places such as Carlisle, the local authority has told us that the defences have saved some 2,000 homes from the summer flooding events. Despite the financial situation that we inherited, the Government have continued to invest substantially in flood defence, spending £470 million a year. I am sure that my hon. Friend appreciates that that has undoubtedly protected people’s homes and kept businesses operating when, in the past, they would have been under water.
I am surprised that the Minister is eulogising the Government’s continued investment in flood defence work when there has been a significant reduction in such work, as I pointed out in my opening remarks. Will he concede that there has been a 27% reduction in flood defence work?
I was not eulogising the Government, but making the point that we are spending £470 million a year which, considering the economic mess that we inherited from the previous Labour Administration, is something that we should all know about.
Let me turn now to the role of local authorities. As ever, local authorities have been on the front line of the response to the flooding this summer. Of course, once flooding has subsided, recovery begins. Local authorities support such work from their reserves, which are there to help to meet the costs of emergencies, such as flooding. Of course, Bellwin is also in place.
I am sure that local authorities will look sympathetically at requests for hardship relief from business rates for businesses affected by the flooding. They were urged to do that quickly in the immediate aftermath of the event. If they grant such relief, Government will fund 75% of the cost.
(12 years, 1 month ago)
Commons ChamberAs I have just said, the funding decisions will be made in December in the usual way. Some Opposition Members do not support the idea of a flat line for metropolitan funding, and we are looking at that issue at the moment. The metropolitan brigades also have a higher per head grant in the first place, so there is full funding in there. I have already met a fair number of the metropolitan authorities to discuss this matter, and we will make our decisions and announcements in December.
The Minister will know that fire and rescue services around the country are increasingly being called on to deal with the impact of severe flooding each year. Many of them, especially the metropolitan authorities, are struggling to meet their statutory obligations as a result of the Government’s swingeing cuts to fire and rescue services. Is the Minister happy to leave people who are affected by flooding this year to their own devices, or will he ensure that funding is available to enable the fire and rescue authorities to carry out that non-statutory function?
I want to update the hon. Gentleman on a matter of fact. He might like to have a look at the figures, which show that the cut for fire authorities last year and the year that we are now in was 0.5%, as opposed to the swingeing cut to which he referred. Those authorities continue to do a fantastic job, as we are seeing. Problem with deaths from fire have fallen quite dramatically over the past few years, and the figures that he is citing simply do not add up.
(12 years, 3 months ago)
Commons ChamberI welcome the Minister to his post. I am sure he is aware that local government leaders say that this policy is inefficient, bureaucratic, unjust and unworkable, and I can confirm that many are referring to it as “Pickles’s poll tax”. The Conservative chairman of the Local Government Association has said that councils
“can either cease helping the working poor, or continue to support them by taking money from other services or putting up council tax.”
What does the Minister think councils should do?
I think it important for councils to realise that they are part of the economy of their area, to do what they can to inspire economic growth in order to get more people into work, and to make decisions for their local communities that are right for those communities.
It is pretty obvious, where councillors from the county authority represent Norwich and Exeter, and councillors represent the districts in Norwich and Exeter, that that in itself is a duplication. We heard the Conservatives say in the run-up to the election, and we know from their gerrymandering Parliamentary Voting System and Constituencies Bill, that they want to make politics more cost-effective, but if they are genuinely serious about that, they would support the unitary status bid in Norwich and Exeter. That, then, is a duplication of the political process. There is also the duplication of the chief officers and the fact that the backroom activities of Norwich and Exeter duplicate those of Norfolk and Devon to some extent. I could go on—there is a long list of areas where there is duplication. That is surely a given.
On the hon. Gentleman’s comment about Norwich, is it not correct that, even if there was a Norwich unitary, under the previous Government’s proposals there would still be a Norfolk county council, so there would be no change in the number of chief executives? The hon. Gentleman’s point does not make sense.
Yes, there would still be a Norfolk county council and a Devon county council, but the fact remains that there would be far fewer councillors than there are now. There would certainly be the reduction in backroom staff in Devon and Norfolk that is necessary at the moment. That fact was recognised by previous Conservative Governments, which is why they were so keen to create so many unitary councils, which Derby, Nottingham, Leicester and many other local authorities around the country benefited from. The hon. Gentleman is on shaky ground if he is suggesting in some way that there is no duplication in the two-tier model that we have in Norwich and Exeter.
I urge the hon. Gentleman to look at the impact assessment. He is right that the cost of implementing unitary status in Norwich and Exeter is around £40 million, but the savings over that same period work out at £39.4 million, so the net cost of implementation is only £600,000, and there is an additional, ongoing saving of £6.5 million per annum.
The hon. Gentleman helps me to make my point: just think how much we could save if we did not have the up-front costs of a top-down, forced unitary authority. In Norfolk, local authorities and the county council are working together to find ways of sharing services and to make the savings of £6 million a year—or potentially more—across Norfolk without going to the trouble and cost of creating a unitary authority that is forced on them from the top down.
We must remember there was no screaming desire on the part of people in Norfolk or indeed Norwich for that change, and no opinion poll showed that they wanted it. The only review—published by the previous Government—showed an overwhelming desire for the status quo across Norfolk and that if there was a preference for unitary, it was for a Norfolk unitary rather than Norwich unitary, which could have meant an awful lot of savings. Changing Norwich city council, which has not had a great track record recently, into a unitary would not save anything in officers or councillors. The real benefit to Norfolk will come from local authorities working together and sharing services. Those discussions are ongoing, and I hope that savings can be made much earlier than they would have been made under a unitary authority. That might even happen before Christmas.
(14 years, 2 months ago)
Commons ChamberOur very clear view is that the Bill is misguided and should never have come before the House. We heard the Secretary of State, in his customary pejorative fashion, criticise the measures to create unitary authorities in Norwich and Exeter as a “worthless legacy”. “The public want the council to get on with more important matters,” he said, and he referred to “zombie orders”, but the fact is that the Secretary of State himself, with the massive cuts that he has endorsed, is creating zombie councils. He has singularly failed to stand up for local authorities and for the people who, throughout the length and breadth of the country, rely on the services that councils provide.
The Secretary of State talked about giving councillors the power to decide matters for themselves, and we support that, but the unitary proposal had cross-party support in Norwich and Exeter, so if he genuinely believes that councillors should be given the power to decide for themselves, why on earth has he brought this Bill before the House?
The hon. Gentleman refers to cross-party support in Norwich, but for clarification I must note that he cannot be referring to the Conservative party, because Conservative members of the council were very much against the unitary proposal from the very beginning.
The members from the hon. Gentleman’s party in Norwich were pretty irrelevant, actually, to—[Hon. Members: “Oh!”] They were irrelevant to the extent that they represent—[Interruption]—if the Secretary of State will allow me—a rump in that authority. Let us be clear about that.
The Secretary of State is really scraping the barrel. If that is the best he can come up with, it demonstrates the paucity of his argument.
The hon. Member for Broadland (Mr Simpson) talked about democracy and said that there would be “no advantage”—I think those were his words—to local people of a unitary council. I wonder what planet he is living on, because clearly there is a significant benefit to local people from a unitary local authority, and it is clear that the people in Exeter and in Norwich want a unitary authority. There is a streak of gerrymandering running all the way through the Conservative party: it wants to gerrymander constituencies across the country and to gerrymander in local government. The views of local people—
I have taken a few interventions. I want to make some progress.
The other important fact that the Government are ignoring is that Exeter and Norwich are significant economic drivers—the economic powerhouses of their local areas. If they were freed and allowed to speak up for the people they represent, they would be in a far, far better position not only to improve the services they deliver, but to bring in new inward investment to create the jobs that will be desperately required as a result of the horrendous cuts that the Secretary of State has sanctioned, which we heard about only yesterday.
I want to make a little more progress and deal with another point that the hon. Gentleman made. I will give way in a moment.
The hon. Member for Broadland betrayed a lack of understanding of local government when he said that the creation of unitary authorities in Norwich and Exeter would result in two police forces in each area. Clearly, that is utter nonsense. Let us get that on the record. He said that the move was supported by the former Secretary of State because it would generate some political advantage for the Labour party. Again, that is utter nonsense. It seems to me that, in making that remark, the hon. Gentleman is being economical with the truth. If someone is economical with the truth often enough, sometimes people start to believe it.
The hon. Gentleman wants to fight the battles of yesteryear. A number of changes occurred, not the least of which was that a better case was made by the authorities in question. In addition, there was a significant change in the economic conditions facing the country and, as I have pointed out, the cities are excellent economic drivers.
I do not want to give way to too many more Members, because I am conscious of the time. I will be told off by the Whips if I go over my time and it would not be fair to take all the time left.
My right hon. Friend the Member for Exeter (Mr Bradshaw) made an excellent speech in which he set out the case extremely well. He referred to the Secretary of State saying that he supported “localism, localism, localism”. Of course, in reality, the right hon. Gentleman’s commitment to localism is sadly lacking. If this is not about localism, I do not know what is. How on earth can the Secretary of State make such statements and claim that he is the tribune of the people and supports localism, and then deny the wishes of local people and their elected representatives? That is the very antithesis of localism. It is clear to me that, far from supporting democratic localism, the Secretary of State supports a more autocratic, top-down approach to local government.
On a point of order, Mr Deputy Speaker. The hon. Gentleman just referred to the amount of time he has left. Will you clarify how much time he has left to take interventions on the statements he is making?
This debate would have to finish at 6 pm, but it is always up to each and every individual Member whether they take interventions.
I am sure that the House would love to listen to me speak for the next four hours, but I will not carry on that long.
The hon. Member for Newton Abbot (Anne Marie Morris) let the cat out of the bag when she said that the cities are in a better position to attract grants—additional funding streams. It is clear from that statement that the current system of local government in those areas means that cities are able to bring in grants—often because they have a larger proportion of disadvantaged people living in their boundaries—but that that money is being siphoned off into other parts of the county and is not going to those who need it the most. That lets the cat out of the bag and I am sure that the Secretary of State had his head in his hands when the hon. Lady made that comment.
The hon. Lady said that she wanted the county structure to stay in place because she wanted to get funding for the A380. I do not know whether she was in the House yesterday or whether she listened to the Chancellor’s statement, but the chances of getting funding for any new road schemes are pretty minimal to say the least.
No I will not give way; I am sorry, but I want to make some progress. [Interruption.] Will hon. Members calm down and listen for a moment?
My hon. Friend the Member for Southampton, Test (Dr Whitehead) absolutely demolished the Government’s arguments about value for money, because this is about no such thing. Unitary councils provide far better value for money because the unitary system avoids duplication, means that local people understand far better the provision of services and, as I have said, brings in new inward investment and is a good economic driver for the community.
The hon. Member for Great Yarmouth (Brandon Lewis) spent about five minutes denying the self-evident facts about the benefits of unitary authorities—they are easier to understand, cost less and provide a better governance model.
No; I am going to carry on. [Interruption.] Hon. Members should calm down for a moment.
My hon. Friend the Member for Luton South (Gavin Shuker) has first-hand experience of the benefits of the unitary council that was created by a Conservative Government back in 1997. During the recent by-election, he had the opportunity to speak to local people in Norwich and it is clear from what he said that those people had no truck with the Government’s proposals to deny their right to self-determination.
The hon. Member for Halesowen and Rowley Regis (James Morris) tried, in spite of the evidence, to portray the Conservatives as the defenders of localism, but that could not be further from the truth. He suggested that Labour has no business trying to claim that title, but we have demonstrated, through our period in government and our commitment to local government, that we are the party that genuinely deserves the crown when it comes to supporting localism. We have supported democratic localism: a Labour Government initiated the whole neighbourhood working and neighbourhood regeneration approach and supported local government with significant funding streams. The hon. Gentleman has the temerity to lecture us about top-down reorganisation when he is supporting the biggest ever top-down reorganisation of the national health service since it was created by the Labour party more than 60 years ago!
Finally, let me address the comments of the hon. Member for Norwich South (Simon Wright), who wants to have his cake and eat it. He said that he was sorry that we are where we are but went on to extol the virtues of unitary councils. He supports the unitary council in Norwich but he has clearly been leaned on by his Conservative masters to dance to the Tory tune—as the Liberal Democrats have done ever since they signed up to the coalition agreement. The Bill belies an underlying authoritarian streak in the Secretary of State: it is not so much localism, localism, localism as diktat, diktat, diktat.