Local Government Finances: London

Debate between Calvin Bailey and Jim Shannon

Wednesday 26th March 2025 Westminster Hall

[Mr Bailey]

My hon. Friend is right. It is important that we recognise the circumstances in which we found ourselves and that we point to the measures that this Government have taken to start to fix this endemic problem, which I will continue to explain.

Over and over again, the Tories passed the buck without passing the bucks. Our councils have had to deal with wider changes to legislation and other new duties and responsibilities, even as financial support has been repeatedly eroded. This challenge has been building and building. London’s population has grown by 900,000 in the last 15 years, with massive consequences for rising demand for services, particularly adult and children’s social care, special educational needs and disabilities, and temporary accommodation.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing the debate. One of the biggest issues for all councils—London councils and other councils across this great United Kingdom of Great Britain and Northern Ireland—is housing. The Government have committed to 1.5 million houses, and that is a commendable strategy to address the issue. Does he agree that, whenever the houses come through, the Government have to look at rental accommodation and price, which many people are finding it hard to manage? It is not just the provision of houses, but ensuring that people can actually rent and live in social and rented housing.

[Mr Bailey]

The hon. Member is right, but we cannot adjust the market situation without adding more houses to the stock. Once we have increased the number of houses, we can start tackling the private rented sector. We are doing so, and I hope that the Minister will expand on some of the measures that this Government are taking to bring our landlords into line and improve the quality of the private rented sector.

As a result of the problems I have described, London’s boroughs are facing an unprecedented financial crisis, one that threatens the vital public services that millions of Londoners rely on, including my constituents in Leyton and Wanstead. Our communities are strong, but we also face significant challenges, ranging from crime and antisocial behaviour to a shortage of decent, affordable homes and the need for better opportunities for young people. All those issues can only be addressed effectively if our excellent councils can invest in our future.

Many councils are now teetering on the edge of issuing section 114 notices—meaning effective bankruptcy—and those risks are increasing, because the drivers of increased costs have simply not been accounted for. Seven London boroughs, nearly a quarter of the total, require exceptional financial support for 2025-26 amounting to over £400 million, and London accounts for almost a third of the total national EFS funding of £1.3 billion. We need to seriously engage with these challenges and chart a sustainable path forward. According to London Councils, London boroughs are forecast to overspend by £800 million this year; particular pressures include homelessness at £330 million, adult social care at £200 million and children’s social care at £160 million. The cost to the public purse will be so much greater in the long run if we do not deal with this crisis now.

By far the most acute financial pressure facing London boroughs is homelessness. The scale of the crisis is staggering: London Councils assesses that one in every 50 Londoners is currently homeless and living in temporary accommodation, including nearly 90,000 children. First and foremost, this is a human tragedy. Like many other colleagues, I have been engaging with individuals and families who are suffering as a result of the housing crisis, including a very powerful visit that I had this Christmas with Crisis in central London. In addition to this human suffering, homelessness represents the fastest-growing financial risk to London’s local authorities, with our councils spending £4 million per day on temporary accommodation—a figure that has surged by 68% in just one year.

Antisocial Behaviour: Leyton and Wanstead

Debate between Calvin Bailey and Jim Shannon

Wednesday 23rd October 2024 Commons Chamber

[Mr Calvin Bailey (Leyton and Wanstead) (Lab)]

I am grateful to have this opportunity to address the House on an issue of pressing concern in my constituency. Persistent and serious patterns of antisocial behaviour have a profound impact on communities. I will talk about the nature of these challenges, the admirable patience and resilience of my constituents in the face of these issues, the strong leadership demonstrated by our local council and police, and how the Government’s plans will be instrumental in turning the tide.

At the outset, I want to express my gratitude to the Minister for her attention to these matters, her willingness to engage with me last week and her offer of a further meeting to give me confidence that we can make progress on some of the difficult issues that I will outline today. I must also take this moment to commend the exceptional leadership shown by Waltham Forest council leader Grace Williams, Kam Rai at Redbridge council, Superintendent Claire McCarthy and Chief Superintendent Dan Card. They are leading the charge in keeping these issues from becoming even more severe, and I am confident that with continued support we can make real progress.

The problems I am going to raise are the manifestation of 14 years of underinvestment in the police, the decimation of our council services, a funding model that does not recognise the disproportionate population growth in east London boroughs and a criminal justice system that is feeding people back into our communities without rehabilitation.

Turning to the specific challenges, it is essential to understand that antisocial behaviour is more than a series of isolated incidents. It is often concentrated in areas of deprivation and exclusion, such as the Avenue Road estate in Leytonstone. Here, we are seeing a tragic cycle of drug misuse, criminality and social breakdown that threatens to undermine the fabric of our community. Public spaces are being vandalised, bins are being set on fire, and needles and drug litter are being left where children can find them. Users are shooting up and smoking crack in full public view. They are forcing entry to use drugs in people’s front gardens and communal hallways and stairways, where residents have to get past them. Residents are seeing drug users having sex in public spaces or lying unconscious. It is incredibly distressing, particularly for residents with young families. Public spaces, including parks and playgrounds, are becoming unsafe due to open drug use and vandalism. Despite these troubling conditions, the residents of these areas have shown incredible tolerance and dignity.

[Jim Shannon (Strangford) (DUP)]

First, may I commend the hon. Gentleman for securing this debate? He referred to public parks, playgrounds and main streets as places where antisocial behaviour takes place. It is taking place in my constituency and I want to add to this debate by saying what we did. We had community police officers on the street and we also have an organisation called Street Pastors; it is very active and it involves all the churches coming together voluntarily to try to engage with those on the streets who might cause some of the antisocial behaviour. Those two objectives of more community police and more street pastors seems to have reduced the large number of antisocial behaviour issues in my constituency. I am trying to be helpful in this debate—I always try to be constructive—and hopefully that is something the hon. Gentleman will think about.

[Mr Bailey]

I thank the hon. Gentleman for his intervention. As he will learn, a number of schemes have aimed to tackle antisocial behaviour in the community. However, the size of the problem tends to bubble up, and I will come on to that.

Residents who speak up for their right to live in peace in their own community face serious intimidation, harassment, verbal abuse and threats. Many have told me that they fear that violence will be next. It is vital that we recognise and appreciate their tolerance. It is not only that residents are enduring such problems; the viability of the estate itself is questionable, and the council’s inability to regenerate the area contributes to their marginalisation. Their lack of opportunities further adds to the problem. Residents tolerate antisocial behaviour with remarkable respect and humility, and a sense of self-worth. However, their patience must not be mistaken for complacency or acceptance. They deserve solutions, and I hope the Minister will tell us how the Government’s approach to tackling antisocial behaviour will provide the framework we need. I am sure that this is something on which the council will continue to actively engage with residents, including at the meeting later this month, so that I can communicate back to them.