Planning and Infrastructure Bill

Caroline Nokes Excerpts

2nd reading
Monday 24th March 2025 Commons Chamber

Second Reading

[Madam Deputy Speaker (Caroline Nokes)]

The reasoned amendment in the name of Gideon Amos has not been selected.

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[Mr Richard Holden (Basildon and Billericay) (Con)]

That raises a broader point. At the moment, councils in parts of the country such as my constituency are being abolished by this Government, so there will be no democratic accountability down the line, and there will be no democratic accountability at council level through planning committees, either. They are removing layer after layer of protection for local communities such as mine, with huge amounts of green-belt land suddenly redesignated as grey-belt land, despite recently being high-grade agricultural land. Can my hon. Friend understand the concerns in communities such as mine about what these proposals are doing? They want to see more housing, but not at the expense of London seeing a housing target—

[Madam Deputy Speaker (Caroline Nokes)]

Order. That was a very long intervention.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. About 60 Members are seeking to get in, so after the Front-Bench speeches have been completed there will be a five-minute time limit.

Coastal Communities

Caroline Nokes Excerpts

Thursday 20th March 2025 Commons Chamber

[Patrick Hurley (Southport) (Lab)]

In many ways, my constituency of Southport is a typical coastal community and, like many coastal towns, it has seen better days. It is coping with challenges that do not necessarily impact inland areas to the same extent. Part of that negative change is due to the nature of the town’s economy, but a big part of it is due to its geography: it is a seaside town.

What made many of our seaside towns successful originally—the sense that they were a trip away from the big city and that people could travel for miles through the countryside to get to them—now militate against us. While it once might have been appealing for families from Manchester to take a packed lunch to the seaside and enjoy the scenic train route through Lancashire, it is no good for our commuters to still be stuck on that scenic route, trundling across the north-west to get to work and back every day. What was once our strength has now become our weakness.

Austerity has hit us hard too. The former Government removed in excess of £200 million a year from the local area. The multiplier effect of that has had an impact on private businesses in the town because when so many customers see that their wages are not keeping up with prices, then small businesses fail. We have seen a lot of that in Southport in the past decade.

Austerity manifests itself in different ways in different areas, and in my town austerity has manifested itself most prominently in the closure of the town’s seaside pier. A botched repair job 25 years ago means that there are now structural problems estimated to cost over £10 million to fix. The pier is in local authority ownership, and thanks to the previous Government, the local authority has not got the money to bring about the necessary repairs. I have been campaigning on innovative ways to ensure that piers across the country are safeguarded for the next generation.

This Labour Government have more coastal MPs than at any point in our country’s history, as is evidenced by the overwhelmingly empty Conservative Benches. The common issues faced by coastal towns are felt keenly by my colleagues on the Labour Benches. With that in mind, I am pleased that the Government are willing to commit to support our coastal communities and I too put on record my wish to see the creation of a specific Minister for coastal communities. The issues our areas share are so specific to the coast, common to each other and important to our residents that Government will gain greatly from a dedicated Minister ensuring that the views of our towns and areas are heard in this place.

I am sure that if government steps up and meets some of the challenges that our towns face, the decade of national renewal that we know the country needs could be implemented.

[Madam Deputy Speaker (Caroline Nokes)]

Order. With an immediate two-minute time limit, I call Siân Berry.

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[Ms Billington]

Indeed, we need a place-based approach with that active state. If we want economic growth that reaches all parts of the country, invest in coastal communities. If we want public services that really improve the experience of people who are most alienated because of state failures, invest in coastal communities. If we want to create an environment that works for nature and people, invest in coastal communities. I am speaking not just about financial investment, but about investment of Government time, energy and focus.

When colleagues and I were trying to work out which Department would be answering this debate, we literally did not know. While I am obviously delighted to see the Minister in his place, the issues raised in this House today span all Departments, whether that is Health, Transport, Environment, Education, the Home Office, the Treasury or many others. I simply note that if there is not one Minister who fits the portfolio, there should be one—a Minister for coastal communities who can focus on regenerating our towns and growing our coastal economies.

I will end with a point about the previous Labour Government. In the 1990s, cities were not the places they are today. That Labour Government had a relentless focus on improving them, and the regeneration we have seen is testament to what can be delivered. Coastal towns are in the same position now, and the Labour Government have not only—

[Madam Deputy Speaker (Caroline Nokes)]

Order. Members will be aware that I will call the first Front Bencher at 4.38 pm. That means that not all Members will now get in. They might consider that when making interventions.

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[Alison Hume (Scarborough and Whitby) (Lab)]

My constituency of Scarborough and Whitby includes some of the most beautiful towns and villages in the country, but it also has some of the worst health outcomes. We have talked a lot about older people in this debate, and I will use my time to talk about younger people.

I am excited by the opportunities that the advent of renewable energy offers young people in my constituency. Scarborough university technical college is already training the engineers of the future, who will work on the wind farms off our coast. The Construction Skills Village in Eastfield is training apprentices in bricklaying, plastering and other trades to help build Labour’s 1.5 million new homes. However, we must deliver year-round, non-graduate careers for our coastal kids and ensure that funding is funnelled not into cities and universities, but into coastal communities. Only by doing this will we deliver on our mission to break down the barriers to opportunity.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the hon. Lady for being so brief. That brings us to the Front Benchers.

Point of Order

Caroline Nokes Excerpts

Tuesday 11th March 2025 Commons Chamber

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

On a point of order, Madam Deputy Speaker. Earlier today, David Lawrence, a former Labour parliamentary candidate, put out a public statement saying that he was pleased to be

“invited to No. 10 for a preview of the Planning and Infrastructure Bill”,

a landmark piece of legislation yet to see the light of day in this House, despite a number of statements from Ministers about how significant and important it would be. May I seek your guidance on how we can ensure that important legislation deserving the scrutiny of Parliament is first seen in this House, not shared offline with Labour parliamentary candidates?

[Madam Deputy Speaker (Caroline Nokes)]

I thank the hon. Member for his point of order. I am sure that his comments have been heard by those on the Treasury Bench.

[The Secretary of State for Housing, Communities and Local Government (Angela Rayner)]

Further to that point of order, Madam Deputy Speaker. Can I assure the House that no one has had a preview? The Planning and Infrastructure Bill is coming to the House. Of course, we regularly consult stakeholders, but no one has had a preview before the House.

[Madam Deputy Speaker]

I thank the Secretary of State for that point of clarification.

Bills Presented

Planning and Infrastructure Bill

Presentation and First Reading (Standing Order No. 57

Secretary Angela Rayner, supported by the Prime Minister, the Chancellor of the Exchequer, Secretary Ed Miliband, Secretary Heidi Alexander, Secretary Steve Reed, Secretary Jo Stevens and Secretary Ian Murray, presented a Bill to make provision about infrastructure; to make provision about town and country planning; to make provision for a scheme, administered by Natural England, for a nature restoration levy payable by developers; to make provision about development corporations; to make provision about the compulsory purchase of land; to make provision about environmental outcomes reports; and for connected purposes.

Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 196) with explanatory notes (Bill 196—EN).

Sentencing Council (Powers of Secretary of State) Bill

Presentation and First Reading (Standing Order No. 57)

Robert Jenrick, supported by Mrs Kemi Badenoch, Rebecca Harris, Dr Kieran Mullan and Helen Grant, presented a Bill to provide that the Sentencing Council may not issue sentencing guidelines without the consent of the Secretary of State; to give the Secretary of State the power to amend sentencing guidelines prepared by the Sentencing Council before they are issued; and for connected purposes.

Bill read the First time; to be read a Second time on Friday 14 March, and to be printed (Bill 197).

Political Finance Rules

Caroline Nokes Excerpts

Thursday 6th March 2025 Commons Chamber

[Several hon. Members rose�]

[Madam Deputy Speaker (Caroline Nokes)]

Order. As Members will be able to tell, we have considerably more Members wishing to speak than we have time for, so perhaps we will start with an informal time limit of no more than five minutes.

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[Mr Paul Kohler (Wimbledon) (LD)]

I congratulate the hon. Member for South Dorset (Lloyd Hatton) on securing this debate, and I thank the Backbench Business Committee for granting it.

As the Prime Minister declared last year, and as we see so graphically on the world stage now, the �fight for trust� will be

�the battle that defines our political era.���[Official Report, 17 July 2024; Vol. 752, c. 56.]

It is clear that if we MPs are to achieve the changes that people need most in their lives, we need a functioning democracy. If those we represent do not trust politicians to act in their best interest, we will not be an effective institution. Currently, it is simply not the case that they trust us. Both in the UK and across the globe, faith in politics and politicians is at an all-time low. In the UK, 76% of people have little to no trust in Members of this House�up from 54% a decade ago. I note with no great relish that this may not be surprising after years of a Conservative Government who were more concerned with their internal politics than the concerns of people around the country, but it should be a deep concern for us all. Rebuilding trust in politics is the goal, regardless of our political colour or persuasion. I am sure that all Members of the House can support that, but it will not happen overnight.

Research from the Electoral Commission shows that only 15% of people agree that there is transparency around the money spent and received by parties and campaigners�down from over a third in 2011. We should be clear that political donations are not inherently wrong and are part of a vibrant democratic system. Individuals should be able to take part in the democratic process through political donations, which can help people to further the goals and ideals that they believe in. Banning any donations would entrench power, leaving new or smaller parties unable to campaign against incumbents. It would work against many of our democratic principles, but it is clear that although political donations are a good thing, we must have adequate transparency as to the source of the money. That is currently not the case.

The legal framework for the political finance system is now over 25 years old, and though it was explicitly intended to ban foreign donations to UK political parties, there are clearly many loopholes. There is no doubt that foreign nations have an interest in altering our politics. Dictators such as Putin and Xi Jinping have made it perfectly clear that they do not believe in democracy and are willing to undermine our institutions, but our current system has built-in loopholes that allow foreign interests to channel money to our politics to shape it in their interest. At present, UK-registered companies are permitted to make donations using money raised overseas and, as has been said previously, unincorporated associations can legitimately make donations using funding from otherwise impermissible donors.

It is not just foreign donations that should cause concern; the sheer amount of money coming from a small number of extremely wealthy donors is also worrying. Of the �85 million received in private donations in 2023 alone, two thirds came from just 19 donors. Money helps direct the political winds, and having that amount of money come from such a small number of powerful individuals risks bringing our democratic system into disrepute.

We must introduce a cap on donations. No matter how noble the intention, no individual should be able to donate excessively, as large donations can at the very least give the impression that undue influence is being exercised over our democracy. This would not only be a positive step in cleaning up politics; it would be popular too. A recent YouGov poll found that more than two thirds of the British public support a limit on political donations. Personally, I also have concerns about the capacity of union barons to exercise what might appear to be undue influence via the vast amount of money accumulated through the political levy, which they can donate or withhold as they see fit. However, I acknowledge that the issue is complex.

We are at a crucial juncture, and it is in everyone�s interests that the Government get a proper handle on this issue. We cannot enter the next general election with so many questions left unanswered.

[Madam Deputy Speaker (Caroline Nokes)]

I call Stella Creasy, with a four-minute time limit.

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[Phil Brickell (Bolton West) (Lab)]

As colleagues have done already, I congratulate my hon. Friend the Member for South Dorset (Lloyd Hatton) on securing this debate.

I rise to speak as someone who dedicated almost 15 years of my working life before coming to this place to being an anti-corruption professional. It is an issue that goes to the heart of our politics, so it is somewhat disappointing to see that no Back-Bench Members from the official Opposition are present to speak in this debate. This is a vital issue on which we need to build consensus across party lines.

We have heard about low turnout at elections, which, as I think we all know, tears at the very fabric of our society, corroding democracy and the social contract between the citizen and the state. Foreign political donations might well be banned in the UK, but the current restrictions are far too easy for determined actors to circumvent. In response, we must be bold in reforming our outdated oversight of political donations.

The risk posed by foreign interference plagues all our parties. Although it is not just about one person, individual or party, I have taken the liberty of raking back through donations of years past to illustrate my argument. Indeed, just before the election, the Bureau of Investigative Journalism made what should have been impermissible donations to all six major parties. All but one�Labour�failed to correctly identify that the donation could not be accepted under current rules and return the money.

Elsewhere, the Intelligence and Security Committee�s 2020 report on Russian interference made it clear that Russian money has been used not just to buy up sprawling mansions, but to attempt to buy influence in our politics. We have seen Lubov Chernukhin, the wife of a former Putin Minister, donating more than �2 million to the Conservative party. One might ask, what does �2 million buy? Well, in return, Lubov was awarded with a tennis match with Boris Johnson and dinner with Liz Truss and Theresa May�they picked up the bill, presumably. Let us also take the case of oligarch Alexander Temerko, who ran a Russian state arms company and has coughed up more than �700,000.

Separately, we know that the Russian state and its proxies have a well-documented history of interfering in the politics of other countries and subverting hard-won democracy, whether that is in the United States, France or Moldova, as my hon. Friend the Member for Kensington and Bayswater (Joe Powell) mentioned. We should not be so arrogant as to assume that Britain is immune to this interference.

So what can we do? First, I hope that we will see an elections Bill in the next Session, which would provide a golden opportunity to close the loopholes we have heard about today, give the regulator real powers and safeguard our democracy against foreign influence. If the Minister is looking for inspiration, she need only look to organisations such as Spotlight on Corruption, Transparency International UK, as well as the Electoral Commission itself. We should include proposals around making sure that we introduce �Know your Donor rules��or KYD. Introducing such rules would require parties themselves to conduct proper checks on the sources of a donation. Where that cannot be established, the parties themselves will be required to reject that money.

Secondly, we should close the current loophole in our donation system that allows donations from shell companies that have never even turned a profit in the UK. Thirdly, we must crack down on unincorporated associations, such as the Carlton Club, which can channel donations to political candidates. Some unincorporated associations have become opaque slush funds to channel money into politics, allowing money from undisclosed foreign sources to trickle into our election campaigns.

If we fail to act and send a clear message, we undermine democracy and trust in our politics. We must not allow that to happen, and I urge the Minister to be bold.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

I thank the hon. Member for South Dorset (Lloyd Hatton) for his work in securing this important debate, and Members from across the House for their contributions this afternoon.

The Liberal Democrats support this motion, which aligns with our long-standing stance on political finance reform and protecting democracy from foreign influence. We have long called for reforms to prevent foreign interference and increase the transparency in political donations. We support strengthening the Electoral Commission by restoring its independence and increasing its enforcement powers, including higher fines for breaches of political finance laws. Our democracy should never be up for sale to foreign billionaires, oligarchs, or hostile states and, as such, we support this motion, which acknowledges some of those risks.

The Liberal Democrats will continue to push for strong measures to protect our political and electoral system. We want to take big money out of politics by capping donations to political parties. I am proud that my hon. Friend the Member for Stratford-on-Avon (Manuela Perteghella) presented a Bill in this House to do just that. And we want to enhance regulatory powers to protect British democracy from the unprecedented threat posed by foreign interference and attacks on our democracy. Liberal Democrats will make protecting our democracy a national security priority.

We are seeing record levels of disillusionment with the political process, with citizens becoming increasingly disengaged. Research from the Electoral Commission highlights a significant drop in the rate of public confidence in political finance transparency, falling from 37% in 2011 to about 15% today. It has also recently pointed out the threat of foreign influence on social media, highlighting the rise in misinformation and artificial intelligence deepfakes in the run-up to the general election in July last year, as well as new issues arising from the changes to fact checking on popular websites.

Public trust in our electoral process was not helped by the disastrous record of the former Conservative Government. It was not just their successive sleaze scandals, which created a crisis of democracy in this country, or their exorbitant voter ID scheme, which disproportionately disenfranchises the young and those from ethnic minority communities, but their shameful decision to weaken the independence of the Electoral Commission, and that is a decision that will go down in ignominy. If we are to strengthen our democratic safeguards, and correspondingly strengthen public trust in our democracy, that has to start with empowering the Electoral Commission. That is why we need to reverse the Conservatives� changes. We want to strengthen the Electoral Commission by repealing the Government�s power to designate a strategy and policy statement for the commission.

The former Conservative Government also failed to take the threat posed by Russia seriously. They were content to allow Russian money to flood into the UK and also to allow Russian money to flow into the coffers of their own party. And the manner in which Boris Johnson let the Russia report sit on his desk was shocking. When that report was finally published, it laid bare the extent to which Russia is a threat, including to our democratic institutions. The report said:

�The UK is clearly a target for Russia�s disinformation campaigns and political influence operations and must therefore equip itself to counter such efforts.�

It called Russian influence in the UK �the new normal� and said that the Government had underestimated the response required to the Russian threat. We continue to call for the full publication of the unredacted report.

The Russian Government have been accused of orchestrating a widespread campaign of interference and disinformation that seeks to undermine the global order. In September 2024, the heads of MI6 and the CIA jointly warned that the international order is under threat in a way not seen since the end of the cold war, accusing Russia of a

�reckless campaign of sabotage across Europe�.

I hope that the Minister shares my concern that this week United States Defence Secretary Hegseth has announced the stepping back of US counter-cyber measures against Russia. That is an incredibly concerning decision by the Americans, which threatens not only their cyber-security but our own. Will she update the House on what measures the UK is taking to step up our defence of our democratic institutions? We will continue to urge the Government to designate protecting our democracy as a national security priority.

Turning to foreign oligarchs, it would be remiss of me not to mention Elon Musk. Let us recall that just weeks before Musk became a US Government official, he suggested that America should liberate the people of Britain and overthrow the UK Government. I hope that other parties will join the Liberal Democrats in unequivocally condemning such remarks. That incident further proves that we urgently need to tighten up political funding. That includes a cap on big donations. We must prevent foreign oligarchs from being able to interfere in our democracy.

The Liberal Democrats want to take big money out of politics by capping donations to political parties, and we support the motion. A fair cap will ensure that politics serves our constituents and not big money. Over two thirds of the British public support a cap on political donations. We must deliver the reforms that people are demanding.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

Plan for Neighbourhoods

Caroline Nokes Excerpts

Tuesday 4th March 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

With permission, Madam Deputy Speaker, I shall make a statement about the Government’s plan for neighbourhoods.

The defining mission of this Government is delivering economic growth and driving up living standards. In that pursuit we are determined that nowhere is left behind, because, as every Member of this House will know, when our economy has prospered in the past, not everywhere has benefited. Over the past 14 years, decisions taken by the Conservatives have seen too many neighbourhoods fall into decline, with the most deprived areas suffering more than others.

As we deliver our mandate for change, the £1.5 billion plan for neighbourhoods means that in 75 places across the UK, which for too long have been underestimated and undervalued, this Government will support the delivery of growth and access to opportunity and raise living standards, because when our local neighbourhoods thrive the rest of the country thrives too.

Our new plan for neighbourhoods marks the turning of the page on levelling up. This Government will not repeat the mistakes of the past: no more micromanaged pots of money or pitting communities against one another to bid for them. The truth is, for all the promises about levelling up, the Tories’ instinct was to hoard power and hold our economy back. Some 75 towns were promised funding that did not exist, with inflexible restrictions on how that money could be spent. Our plan for neighbourhoods stands in contrast with the Conservatives’ unfunded and failed approach. Unlike the Tories’ list of restrictive options for how towns could spend funding, we have doubled the policy activity that can be considered by neighbourhood boards and put communities at the heart of making these changes.

The money will be spent on a broadened set of interventions and has completely different objectives, aligned with the missions that the Prime Minister set out in our plan for change. For example, communities can now spend funding on the things that really matter to them, such as the modernisation of social housing, community-led housing, skills support, cohesion, childcare and much more. We are making good on commitments to deprived communities, giving each of the 75 places the certainty that they will receive up to £20 million of funding and support over the next decade.

In many communities, work has already been undertaken, and we want to build on that rather than undo it. That is why in each area, we will support new neighbourhood boards, bringing together residents, local businesses and grassroots campaigners to draw up and implement a new vision for their area. For the first time, that will include representatives from social housing and workplace representatives and, in Scotland, Wales and Northern Ireland, the representative in the devolved legislature. In consultation with its community, each board will be given the freedom to decide how to spend the £2 million a year to deliver the priorities of local people, ranging from repairs to pavements and high streets to setting up community grocers, co-operatives or even neighbourhood watches.

These new, broadened objectives will give communities the tools to make informed decisions, with a list of interventions aligned with this Government’s central missions. Those interventions have already been assessed as demonstrating good value for money, so they can be pursued without delay. We have also published a toolkit outlining the wide-ranging powers available to communities and local authorities in England, with similar powers for Scotland, Wales and Northern Ireland to come following consultation with the devolved Governments. This is about giving communities autonomy and about people designing and delivering the change that they want to see.

Our new approach puts communities at the heart of delivery, which is why we have introduced three new objectives to guide the plan. First, there is the importance of building thriving places. People take immense pride in their local area, but too many of our high streets and estates have been neglected and left behind. This funding can be used to ensure that town centres and neighbourhoods better reflect the needs of their community, giving residents a say in how they are designed. It will deliver change that people can see and identify with, so that at the end of this Parliament, people can look out from their doorsteps and see a better neighbourhood. We also want the UK to be a country with world-class public services that work for everyone, which is why this objective will support services that are accessible, responsive and tailored to local need, because investing in young people’s futures and in preventive measures now will ease pressure on services over the long term.

The second aim is to build stronger communities. We want to empower neighbourhood boards to tackle the root causes of disengagement and division and to bring people together so that they can feel proud of their area and safe in their neighbourhood to restore a collective sense of belonging to their community. That is about understanding how division is not only an impediment to growth, but a barrier to driving up living standards.

Our third aim is to empower people to take back control. Everybody should be in the driving seat of their own life and should feel in control of their future, but that can feel like a distant prospect when people are living from payslip to payslip, stuck on a waiting list or just not listened to. It is quite right that people want to have a say over the future of their community, with enough to get by and the opportunity to make the most of their lives. We want to make sure that children have the best start in life and that adults can live the life that they want.

I will finish by talking about the inspiration for this programme, which can be traced back through six decades of community politics. We have drawn enormously from John Prescott and the noble Baroness Armstrong’s new deal for communities, which provided the stability of long-term funding backed by the support of central Government. Like them, our aspiration is to empower local people to drive the renewal of their neighbourhood and to deliver the transformational change that they want to see. This announcement also has its origins in the community development policies of Wilson and Callaghan, who drew the link between social deprivation and social division, and now we are looking to the future.

The Prime Minister has been clear that the task before us requires a decade of national renewal, and our country has all the necessary raw ingredients, untapped talent and potential across every town, city, village and estate, but we also have people without enough to get by and places and public services that have been hollowed out. Addressing that is the central driver of our plan for neighbourhoods, and that is just the start. We have already begun to deliver a real shift of power, aligned with the Deputy Prime Minister’s broader work on devolution, making work pay, fixing the foundations of local government and building decent homes, but this is also a down payment on what we know that communities can achieve. We will give people and places the resources and powers that they need to succeed.

Today’s announcement is a response to anyone in these 75 places who wants to see change. It sends a message that the full force of Government will be there to help them to deliver it, and that is why I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

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[Alex Norris]

I believe that the best value for money is when communities have the tools and resources to shape place themselves, according to their criteria, rather than mine. That is how we drive change.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Select Committee.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I thank the Minister for the statement. A number of Members have been on councils, and some of us still serve on them. If we are all honest, the unfortunate reality is that the competitive tendering process did pit some councils against each other, including deprived councils. It is right that we move away from that, and away from the sticking-plaster politics that we have seen over the past few years.

I want to press the Minister to give us a bit more of an understanding of how the neighbourhood boards will be set up and how they will function. Will there be a clear recruitment process to get the local buy-in that is critical? As the Minister said, it is important that we bring communities along with us. If there is conflict between local authorities and the boards—for example, over a regeneration plan—will one have the power to veto the other, and will the Department have oversight, so that it can intervene, should there be serious concerns about interventions and operation?

The Minister said that it was important for communities to have a say in their future, so is the Department looking at the community right to buy? I declare my interest as a Labour and Co-operative MP. Through the community right to buy, we have seen local pubs, libraries, leisure centres and so much more saved. When can we expect to see that new light, and when will that legislation come forward?

[Alex Norris]

I am grateful to the Chair of the Select Committee for those questions. I agree with what she said about competitive tendering; the quid pro quo is that the Government of the day have to be very clear about how allocations are made. My commitment is that we will always be very transparent about how the decisions are made, and I know that the Select Committee will take a strong interest in that.

Turning to the establishment of boards, I suspect that one of the themes of discussion over the next few minutes will be our not wanting to hold back areas that are making great progress. Areas with established boards may take advantage of the opportunity to add more people to those boards, and may move on at pace, while other areas may want to treat this moment as a chance to reboot their board. Either way, the basic principle is that the local authority will be the ring-holder, supported by the local Member of Parliament, but once that board has got going, we expect it to be in leadership. We do not want boards to have significant tensions with their councils, and we would expect any tensions to be resolved in the usual way, but those boards will have the power to get on with the job.

The community right to buy was a component of the White Paper. We are looking forward to delivering the community right to buy, because we know that it would be greatly valued, whether we are talking about buying pubs or other buildings in communities. We are very keen on that, and as a fellow Labour and Co-op MP, I am particularly keen on it.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Gideon Amos (Taunton and Wellington) (LD)]

The Liberal Democrats welcome this plan to work with communities to improve local amenities and engagement in the process. We also welcome the move away from local council areas bidding against each other, and towards a more objective approach, based, for example, on indices of multiple deprivation. In our opinion and my opinion, the previous system divisively pitted one area against another in a way that did damage to more areas than it helped.

The Liberal Democrats are committed to allowing communities to take action to improve their area. Given sufficient powers and resources, local authorities can play a major role in responding to climate and nature emergencies, whether through the insulation of homes, enhancing green spaces or improving air quality. However, the Conservative Government forced councils to do more and more with less and less, plunging many into financial crisis. As a result, councils have gone bankrupt around the country, and many are feeling the strain of cuts to public services and a lack of investment in community assets.

No community can flourish without proper powers and resources, so we welcome the plan’s commitment to ensuring that new neighbourhood boards work with local authorities to implement new funding. However, we urge the Government to confirm that local authorities will be funded and resourced substantially to take on this additional workload.

The financial burden on councils has forced many to make impossible choices on funding. In my council of Somerset, for example, nearly 70% of council tax receipts go on care for vulnerable adults and children, which many believe should be a national responsibility. Until we have a national solution to the care crisis, councils will continue to be held back from reaching their full potential. We welcome the Government’s commitment to investing in community-led improvement.

We also welcome the new neighbourhood boards, which should provide community engagement throughout the process. We urge the Government to reconsider their decision to remove district council-level scrutiny from the planning process. Where Whitehall takes power and decisions out of the hands of local councillors, it also takes decisions out of the hands of local people. That is undemocratic and will ultimately slow up the process of getting the homes that we need. We also call on the Government to confirm that nature and climate specialists will be included on the neighbourhood boards. Finally, can I ask the Minister—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I remind the hon. Member that there is a time limit. I will give him one more sentence.

[Gideon Amos]

Apologies, Madam Deputy Speaker. Will the Secretary of State review the list of 75 towns, so that others can be included in future? Finally, will the Government consider rolling the plans into neighbourhood plans, so that they are given more statutory effect when planning decisions are made?

Coalfield Communities

Caroline Nokes Excerpts

Thursday 6th February 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

Order. This is a very well-subscribed debate, so there will be an immediate time limit of five minutes for Back-Bench contributions. That, of course, does not apply to the mover of the debate, but I hope he bears that comment in mind.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. After the next speaker, the time limit on speeches will be reduced to four minutes.

Local Government Finance

Caroline Nokes Excerpts

Wednesday 5th February 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

We now come to the motions relating to local government finance, which will be debated together.

[The Minister for Local Government and English Devolution (Jim McMahon)]

I beg to move,

That the Local Government Finance Report (England) 2025–26 (HC 623), which was laid before this House on 3 February, be approved.

[Madam Deputy Speaker]

With this it will be convenient to discuss the following motion on council tax increases:

That the Referendums Relating to Council Tax Increases (Principles) (England) Report 2025–26 (HC 624), which was laid before this House on 3 February, be approved.

[Jim McMahon]

The Deputy Prime Minister and I, like many others in this House, have local government in our blood—we are proud public servants. We know what a difference the sector makes every day to millions of people across this country, and how much stronger local government, working in genuine partnership with central Government, can achieve to change lives. I thank the millions of dedicated public servants who work in and for the sector for all their efforts to deliver more than 800 services that local people rely on.

We know it has been a difficult few years, but this statement is an important step towards rebuilding the foundations of local government, ready to meet the scale of the challenge ahead so that we can rebuild our country together as part of our plan for change. That is why I take the responsibility of leading the Government’s work to rebuild the sector with the seriousness and urgency that is, quite frankly, long overdue.

Today, I will set out funding for local authorities in England for the coming year through the final local government finance settlement. Before I do, I want to say that the Government are grateful to all those who contributed to the consultation on the provisional settlement, which attracted 227 responses, including more than 45 from Members of this House.

--- Later in debate ---

[Jas Athwal (Ilford South) (Lab)]

On the point about inner and outer London, the problem is that outer-London boroughs are now seeing inner-London problems, the funding system is archaic and the formula is based on outdated deprivation statistics, using household numbers rather than population. This unfairly impacts boroughs such as Redbridge, which covers my constituency. It is home to many multi-generational families living under one roof—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We simply cannot have interventions like this. They need to be spontaneous; they should not be read out from pre-prepared scripts.

[Jas Athwal]

Can I just make this point?

[Madam Deputy Speaker]

I think the hon. Member has already had long enough.

[Jim McMahon]

In a way, there is commonality across the House in recognising that particular problems really ought to be taken into account when it comes to local government funding, and if it is got right—our intention is to get it right—it will take into account up-to-date population and deprivation statistics. It should take into account the ability of a local authority to raise tax locally through council tax, or through business rates or fees and charges. It should take into account the cost of delivering services, whether that is about the rental costs of acquiring a space to operate from or even the cost of delivering services in areas such as rural or coastal communities, where there are particular issues. The formula should take that into account, so let’s work through that.

We are responding to the pressures, which is why we are making £3.7 billion of extra funding available for social care authorities. That includes an uplift of £880 million in the social care grant, which includes an additional £20 million that I have confirmed today for the new children’s social care prevention grant, taking the total for that grant to £270 million. That paves the way for the national roll-out of transformed family help and child protection services. We have doubled settlement investment in preventive children’s social care to £500 million next year. If we do not reform the system and focus on prevention, we will continue to pay more and more, too often for worsening outcomes.

This is happening alongside the Education Secretary’s work to take forward the Children’s Wellbeing and Schools Bill, which will crack down on profiteering and improve child protection—something that the Tories failed to do, at a very dear cost to taxpayers, who were left to pick up the bill. Again, the severe pressures on SEND services came across loud and clear during the consultation. As we have announced, we are boosting SEND provision and alternative provision by an extra £1 billion to start to return the system to financial sustainability and to improve outcomes for young people. We are aware of the impact that dedicated schools grant deficits are having on council finances, which is why we are committed to working with councils, parents, teachers and schools to transform SEND provision and the life chances of the children who need it.

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[Kevin Hollinrake]

We all have different views on this matter. Many parts of my constituency are not wealthy and have deprivation that is not sufficiently catered for by some of the formulas. That is what we are concerned about. We are keen to see fairness across the board, so we will scrutinise Labour’s plans very carefully on that basis.

The Labour Budget promised a big increase in council spending and the return of the sector to sustainability through a comprehensive set of measures to support local authorities in England. As I said, the Government also promised multi-year settlements, and we support those intentions. However, most of the money provided to local councils under the settlement will be through council tax rises for working people. A number of the rises breach the 5% referendum limit principle. Referendums on council tax rises of up to 9.9% have been waived by the Secretary of State, so local people cannot have a say on these dramatic increases. That means that local residents in the Windsor and Maidenhead borough, Birmingham, Bradford and Newham all face increases of more than 5%. Birmingham is notable due to the mess that Labour made there, which Labour is now forcing residents to pay for, rather than taking responsibility. The Liberal Democrats are also raising council tax without allowing Windsor and Maidenhead borough and Somerset residents a say on how they feel about the increases.

Council tax rises make up the bulk of the settlement, and rather than Labour delivering on its claims that it would fairly fund local government, it is pushing the burden on to taxpayers. The Government have also increased that burden with their jobs tax, which will negatively increase costs on local government finance. Although they have provided £515 million to cover the direct costs of employer’s NI, the Local Government Association has estimated that the national insurance contribution hike will cost another £1.13 billion for increases being forced upon providers of outsourced services.

The costs of those outsourced services will inevitably increase, but the Government are providing no money to cover that. Councils and residents will have to pick up the bill. Council tax receipts in 2025-26 are forecast to be in the order of £50 billion, yet Labour’s nonsensical Chagos islands deal is rumoured to cost up to £18 billion. That is equivalent to a one-off £820 deduction from a typical council tax bill. Alternatively, it could have paid for a council tax freeze for the whole of this Parliament. As with all things, Labour is wasting taxpayers’ money rather than giving them a tax cut.

The settlement will make it more difficult for councils to deliver on residents’ priorities, be they social care or potholes, which I note Conservative councils have a better record of filling in. It is an undeniable fact that Labour and the Liberal Democrats deliver worse services and charge more. From Whitehall to town hall, under Labour, people pay more and get less.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Housing, Communities and Local Government Committee.

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[Ellie Chowns (North Herefordshire) (Green)]

I welcome some aspects of what the Minister is proposing. It is important to not always fire political shots at each other and to look for common ground and give credit where it is due. I have said this to him before, but I really welcome the moves that the Government are making towards multi-year funding settlements. It is so important to move away from the hand-to-mouth, year-to-year, jam-jar approach to funding—particularly capital funding. That ridiculous competition between local authorities over an ever-decreasing pot of funding has been so damaging, so those moves really are things to welcome.

But—there are quite a few buts about the local government finance settlement, but I will focus on just three. I represent the wonderful North Herefordshire constituency. Herefordshire council has received a settlement that is well below the national average, well below the average for comparator councils, and well below what is needed to provide the services that residents need and deserve. An interesting element of the debate has been some Members seeking to pose a binary conflict between rural and urban authorities. I want to get away from that—it is really unhelpful—but it is important to recognise there is serious deprivation in rural areas, not just in income but in access to services.

The hon. Member for Glastonbury and Somerton (Sarah Dyke) talked eloquently about the fact that sparse populations, long distances and poor transport networks all hugely increase the cost of delivering services such as social care or home-to-school transport. That is the impact of geography, but demography is also an issue. Herefordshire has 50% more over-65s than the national average, which has a knock-on impact on the cost to local government of delivering crucial services.

It is absolutely crystal clear that although the Government have taken away the rural services delivery grant, which they perhaps viewed as yet another jam jar, they have not replaced it in the new formula with a fair allocation of funding on the basis of rurality. I beg the Minister to revisit that issue when he comes up with the multi-year funding settlement. Otherwise, the serious problem of rural areas having their specific elements of deprivation under-recognised in the funding formula will build up so many other problems into the future. [Interruption.] I can see the Minister is nodding. I thank him for that and warmly invite him to Herefordshire so that we can show him, face to face and on the ground, the challenge of providing those services. That was “but” No. 1, regarding rurality.

“But” No. 2, which relates to the impact of the rise in employers’ national insurance contributions, has been referenced previously in this debate. I appreciate the nuance with which the Minister answered questions on this issue earlier, and his recognition that it is a really serious issue and that the funding settlement does not fully acknowledge it, particularly the on-costs, because so much of what local authorities do is done not just through the staff they employ themselves, but through commissioned services. I am sure that Members across the House have been inundated with correspondence from charities and businesses working in sectors such as the care sector that are desperately worried about the effect of the increase in employers’ national insurance contributions on their ability to provide those crucial services—so often commissioned by local authorities—to local people. When the Minister is doing the multi-year funding formula in future years, will he please address that issue and ensure that those costs are fully integrated into the calculation?

My third “but” was also touched on earlier. The Minister expressed doubt about whether cross-party agreement could be reached on this matter, but there seems to be quite a degree of consensus across this House that council tax is a broken tax—it is a broken funding system. It is outdated, regressive, unfair, and way overdue a review. We are charging people based on an assessment of property rates that were set 35 years ago and have never been updated. Council tax is crying out for a fundamental review, so will the Minister please commit to undertaking that review, working across parties and across the House to find a much fairer and more sustainable long-term approach to raising local funding?

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

--- Later in debate ---

[Madam Deputy Speaker (Caroline Nokes)]

The hon. Gentleman knows full well that that was not a point of order. It is at the Minister’s discretion whether she wishes to take an intervention. I am sure she is coming to her closing remarks.

[Rushanara Ali]

Thank you, Madam Deputy Speaker.

Once again, I thank hon. Members for their valuable contributions, even if we do not always agree. The point is that we can all agree that there is much work that needs to be done.

Holocaust Memorial Day

Caroline Nokes Excerpts

Thursday 23rd January 2025 Commons Chamber

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

It is impossible to do justice to the scale of the horror witnessed by those entering Auschwitz-Birkenau when it was liberated 80 years ago. They found a death camp that was specifically designed to facilitate starvation, forced labour and the most chilling methods of mechanised execution in human history. Historians estimate that 1.1 million people perished at Auschwitz in just under five years. Across the whole of Nazi-occupied Europe, 6 million Jewish people were murdered, and millions more prisoners of war, political prisoners, Poles, disabled people, members of the LGBT community, Roma and others were slaughtered.

I found the speech of my hon. Friend the Member for Hendon (David Pinto-Duschinsky) so moving, and I will share my own family’s story. One of those we believe was lost was my great-grandfather, a Polish Jew who emigrated to the UK and changed our family’s name in the face of antisemitism here. He returned to Poland just before the second world war, and my family never heard from him again. That is just one reason I am proud that my constituency contains the Kirkcaldy Polish club—branch No. 50 of the Association of Polish Combatants, set up across the UK after the second world war by heroic Poles who, together with so many others, resisted Nazi aggression.

I read a letter written by Helen Oglethorpe, a British medic who was one of the first into Bergen-Belsen when it was liberated. The letter was dated 28 May 1945. She described some of what she found:

“We left Holland on April 29th and came up to the Belsen Concentration Camp. It has been truly terrible and I never really believed what the newspapers told us but it was even worse than that. The first few weeks we spent clearing out all the SS and Hungarian troops’ barracks and turning them into hospitals and cleaning out the actual Concentration Camp. There were 52,000 living and 10,000 unburied dead in an area of about 1 sq. mile. One can’t imagine it unless one has seen it. A further 13,000 died on our hands in the next three or four weeks. We had medical students…working in the Concentration Camp picking out the people who might live and trying to clean up a bit.”

Despite the Nazis’ attempts to strip their victims of their humanity, including by assigning numbers to those held in concentration camps, these people were not numbers or statistics; they were humans loved by their families and citizens who contributed to the cultural, economic and social life of Europe. Indeed, across the great cities of Europe and beyond, each Holocaust memorial is marked by an attempt to remember these people by using their names. That is why I would like to commend the important work of the Holocaust Educational Trust. Each year, as we have heard across the House, we lose Holocaust survivors, and the trust’s efforts to keep the stories of survivors and victims alive ensures that we do not forget them or, indeed, what was done to them.

The theme for Holocaust Memorial Day 2025 is “For a better future”. In the face of mass atrocity crimes taking place across the world, the need for us in this place and, indeed, globally to work for a better future could not be clearer. We must learn the lessons of history, especially in this era of misinformation. We know what happens when antisemitism, hatred and prejudice are allowed to flourish. We must do far more to prevent identity-based violence, genocide and mass atrocity crimes. We must honour those who perished in the Holocaust and those who survived.

[Madam Deputy Speaker (Caroline Nokes)]

I call Shockat Adam.

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[Terry Jermy (South West Norfolk) (Lab)]

It is a privilege to take part in this debate and to have heard so many poignant contributions.

A number of Members have spoken about the importance of education, which increases yet further as time passes. Next week, I have the distinct privilege of attending one of the “80 Candles for 80 Years” events to mark the 80th anniversary. I was honoured that the Lotus academy trust in my South West Norfolk constituency invited me to join that service and be part of a very special nationwide arts and education project to mark the event. As a former youth worker, the importance of education and of continuing the message is pertinent to me. The unimaginable horrors and crimes of the Holocaust were a defining moment in the 20th century. Through events such as “80 Candles”, we keep alive the memory of those who lost their lives under Nazi persecution.

On Monday, I will attend a Holocaust Memorial Day flag raising ceremony organised by Thetford town council in my constituency. I am pleased that for the first time ever, the council will fly the Holocaust Memorial Day flag. I pay tribute to the mayor of Thetford, Councillor Chris Harvey. It is fitting that the flag is being raised this year, during his term as mayor, to mark the 80th anniversary.

As other Members have done, I pay tribute those at the Holocaust Memorial Trust for their work. Their impact on education over two decades is testament to their dedication and commitment. I have certainly benefited from their work.

Finally, as the Minister mentioned in his opening remarks, we mark 25 years since Holocaust Memorial Day was created. The UK was one of the founding signatories to the Stockholm declaration on Holocaust remembrance in 2000—we should all be proud of that. Alongside 45 other countries, the UK Government are committed to preserving the memory of those who were murdered in the Holocaust. I know that Members on both sides of the House stand by that commitment. We should never let it falter or waver.

[Madam Deputy Speaker (Caroline Nokes)]

I call Cameron Thomas.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Caroline Nokes Excerpts

Report stage
Wednesday 15th January 2025 Commons Chamber

[Jim McMahon]

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

I take this opportunity to acknowledge all who have contributed to the Bill’s passage through this House, particularly my private office team, for the support that they have offered during this process, officials in my Department, for the outstanding work that they have done, and colleagues in the Department for Education and the Treasury, as well as Clerks of the House, for supporting the process of this Bill.

The Bill honours the Government’s manifesto pledge to end business rates charitable rate relief for private schools in England and to fundamentally reform the business rates system. We are kickstarting this endeavour through the introduction of lower tax rates for retail, hospitality, and leisure properties.

I thank all Members who contributed to the evidence sessions, the Committee stage and today’s debate. I hope, even though there were disagreements on parts of the new clauses and on the amendments, that there is at least an acknowledgment that we have gone a long way to ensure that we get to the heart of what this Bill is intended to do when it comes to the high street and our town centres. In the end, whatever the differences—and let us be honest there are plenty—we all know how important our small businesses are to the viability of our high streets. We all recognise that these are more than just places in which to do business; they are places that people look to as the heart of their community. They are always more than the sum of their parts. Hopefully, Members will see that these measures will really make a dent in this area.

I also place on the record our thanks to those who gave evidence to the Public Bill Committee, including: the Institute of Revenues, Rating and Valuation; the British Retail Consortium; the Co-op Group; M&S; the Shopkeepers’ Campaign; the British Property Federation; and the Independent Schools Council. They have enabled us to scrutinise the Bill properly and to get evidence from professionals who understand what things are like on the ground, and that, I believe, added value to the process.

I thank those who attended and gave evidence in Committee for their time and willingness to share their expertise. I also wish to extend my thanks to hon. Members who attended the Public Bill Committee to ask questions, to foster debate, and to contribute to discussions as we take these important first steps to transform the business rates system.

The Bill will help to secure additional funding to enable the Government to deliver their commitments to the majority of children who attend state schools, which is the second part of this Bill. Ending tax breaks for private schools is a tough but necessary decision. It will come as welcome news to most parents in England, as it represents the Government’s determination to break down the barriers to opportunity and ensure that all children get a high-quality education. Let us be absolutely clear: more than 90% of children in this country go to state schools and they deserve the best, too. Now they are going to get it.

Let me assure Members that the education system in England is prepared for the relatively small number of pupils who may move as a result of the measures in this Bill. Much of what we have heard about churn in the system is not supported by the evidence and, in the end, it runs the risk of scaremongering. We need to reflect on the fact that there has always been change in the system, even before these measures were introduced. Importantly, we are organising to make sure that parents and pupils receive support if they need it, but we believe that will be around the edges.

The Bill will also provide certainty to high streets by making provision to introduce a permanent tax cut for retail, hospitality and leisure properties. We have heard a lot about the change from the covid relief to the permanent, baked-in relief that we are providing through the Bill. The Opposition have said a number of times during the Bill’s passage that it represents a reduction, but a degree of honesty is required. The Opposition know, as do we, that there was no provision—not a single pound or penny—for the continuation of the temporary relief provided during covid on which retailers, hospitality providers and leisure providers were relying.

The Opposition know that that is a fact, as do we. The only difference is that while the Opposition were willing to political point score, while businesses were waiting for maturity and for an answer to the problem, we were getting on with the job of government, and providing the permanent support that businesses need. How will we pay for it? We have heard the Opposition say a lot that they do not support measures, but they always support the investment. They support the investment in state schools, but not the measures to generate the income. They support the measures to support high streets, but seem not to support the measures to ensure that premises with a value of £500,000 or more pay more into the pot.

The reality is that this has not just come out of the blue. The Conservatives had 14 years to address the imbalance from the online to the on-street, from the out-of-town to the in-town, and they did nothing, so it is, frankly, ridiculous for them to try to present themselves during the passage of the Bill as the champions of enterprise, of our town centres and of small businesses. They now have an opportunity. We have sorted out the amendments—they were nonsense, and most people would accept that—but on Third Reading we get to vote on the substance of the Bill. The Opposition could do the right thing. They could change course and back support for state schools to get them the money that they need. They could back measures to get money to the high street in our town centres and do the right thing. Now is the time to show that they will be the mature Opposition that they promised to be, but I expect that that will not be the path they choose. Luckily, the Government are getting on with the job. I commend the Bill to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank the Minister, and indeed my shadow Ministers, the other Opposition spokespeople and all parliamentarians who have helped with the passage of the Bill, as well as the Clerks and officials—not that I would like to see the Bill progress any further. Aristotle, in his book “Politics”, over 2,000 years ago—[Interruption.]

[Madam Deputy Speaker (Caroline Nokes)]

Order!

[Kevin Hollinrake]

Over 2,000 years ago, Aristotle talked about deviant government. Alongside tyranny, he placed democracy. He said the risk is that, sooner or later, a Government will come along who represent only their own interests and those of their supporters, and that that Government will pursue the politics of envy. Let us see who the Minister’s supporters are. They are not the 12.6 million pensioners in this country, if we judge by the winter fuel allowance; not the 89,500 farmers whose livelihoods will be damaged by the family farm tax; not the 5 million businesspeople who will be damaged by the changes to business property relief, who employ 14 million people and pay £200 billion a year in taxes; not those people who live in rural areas; and not the families of the 550,000 young people who are in private and independent education. According to the Institute for Fiscal Studies—this is not scaremongering —90,000 of them may go back into the state sector as a result of the Government’s choices.

The Government have the gall to say that the fact that business rates or VAT do not apply to school fees is a tax break. It is no more a tax break than there being no VAT on housing, children’s clothes or food. Those measures are there because we should encourage people to pursue education, particularly those who scrimp and save to send their children into private education.

What about businesses? Businesses are suffering on the back of the employer national insurance rise of £25 billion a year, and are worried about the future because of the withdrawal of business property relief and agricultural property relief. The reality is that this Bill means a cut in support for many of those whom the Minister said he seeks to protect—people who work in the retail, hospitality and leisure sectors. The 75% discount is down to 40%. That will mean a tangible difference for the average pub of £5,500 a year. That comes on top of the huge increases in employer national insurance. Some 250,000 businesses will be worse off to the tune of £925 million. That is the tax charge he is placing on those businesses he says he seeks to protect. If he is honest with them, those taxes will go up again in April 2026. That is the reality of the situation.

What promise did Labour make before the election? They said they would scrap business rates completely—another broken promise. In their manifesto, they said they would change the balance between high streets and the online giants. That is not what the Bill does. The Bill also taxes breweries, airports, football stadiums and bricks-and-mortar retailers such as John Lewis, Sainsbury’s and Morrisons. That is the reality behind the Government’s changes: not scrapping business rates, nothing on the online giants and big taxes on many businesses. This is the politics of envy. It is the tyranny of socialism, and that is why we will vote against the Bill.

Question put, That the Bill be now read the Third time.

Local Government Reorganisation

Caroline Nokes Excerpts

Wednesday 15th January 2025 Commons Chamber

[Jim McMahon]

I thank the hon. Gentleman for those questions, and I am genuinely grateful for the spirit of consensus around the broader issue. I accept that there may be differences of opinion on pace, but we do not shy away from our ambition to see devolution experienced by the whole of England. I give a degree of credit to the previous Government for building out devolution in the north of England and the midlands, but surely we have to demonstrate that this project is not reserved for the north of England and the midlands. This is a project for the whole of England, and we are on with that.

Our determination to ensure that we deal with these structural changes early in the Parliament is clear, but that is shared by local government. It is important to say that although of course we will set the timetable and provide support on both the devolution priority programme and local reorganisation, it is for local areas to self-organise and to agree to be part of the programme. We are not mandating this; we are not forcing it. All the requests that we have had since Friday have been from areas who share our ambition.

The hon. Gentleman will know that it is sensible to take the approach that, if reorganisation is a genuine proposal—and the bar has to be high for that test—it is nonsense to have elections to bodies that simply will not exist. It is far better that we move at pace and create the new unitary councils and then hold elections at the earliest opportunity.

I am not going to get into the subject of council tax, partly because it is outside the scope of the hon. Gentleman’s urgent question. Also, he was slightly mischievous in the way that he framed his remarks. On the point about capacity, however, it might be helpful if I lay out what the process will be. Local areas will make the request. We will issue statutory invitations at the end of the month, and areas will need to self-organise. It is not for the Boundary Commission or the Government to lay down which plans come forward. It is for local areas to submit proposals to us, and at that point the Government will decide on the right proposals among what could be a number of options that come forward from local areas. Again, it will be for local areas to self-organise and make those proposals to us.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Housing, Communities and Local Government Committee.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I thank the shadow Minister for securing this important question; he has highlighted some key issues.

Sadly, we know that our councils are at breaking point. The Select Committee’s first major inquiry is to look at local government finances, and we look forward to engaging with the Minister on it. It was reported that local authorities in England were facing £77.5 billion-worth of debt by the end of last year. Much of that is debt to central Government or from borrowing. Sadly, because of that, vital frontline services such as housing and social care are at breaking point. Residents cannot afford to be caught up in buck-passing or discussions about accountability if this reorganisation goes through, so can the Minister assure the House that residents will still have the same level of power and scrutiny over vital services during the reorganisations?

[Jim McMahon]

I thank the Chair of the Select Committee for those questions. What I hear from residents and even from councillors in two-tier areas is that, more often than not, local residents have no idea which council to go to in order to get the answers they need on local services. Reorganisation will provide efficiency savings in organisational costs that can be directed towards frontline services, which we believe are the priority for taxpayers. There should not simply be the cost, in many cases, of such services existing. We also believe that it is right, from a democratic accountability point of view, that residents have a clearer line of sight on which body to hold to account for local decisions.

On the point about local government finance, which we absolutely understand and accept, we have worked hard and I would say we have been relatively successful on rebalancing the funding crisis in local government. We have done that by providing £5 billion of new money, taking the total allocation to £69 billion. We cannot undo 14 years of damage in six months—it has been damaging over the 14 years—but we are now bridging to that multi-year settlement where we can really begin to repair the foundations. I think we have made progress on that.

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

There is no doubt that local government needs significant reform, and Lib Dems are passionate about putting power into the hands of local communities, but we are concerned that rather than producing true devolution, these plans will end up as a top-down diktat from Whitehall. MPs and district councillors from areas including Devon, Surrey and the midlands have told me that submissions appear to have been made without their district councils being involved or consulted, and without the opportunity to undertake consultation with residents and businesses. What steps are the Government taking to ensure that they engage meaningfully with every level of councils?

Councils such as Bournemouth, Christchurch and Poole, which I used to lead, face Hobson’s choice. Tonight, councillors will be voting on whether to join proposals to their east or their west, neither of which reflect their urban needs or their distinct character. Or do they sit it out and hope for the best? What plans do the Government have to ensure that residents will have the democratic ability to decide on the right devolution plan for them? Can the Minister confirm, given that these plans will take more than a year to implement, that all the elections due in May 2025 will go ahead?