Horizon Settlement: Future Governance of Post Office Ltd

Chi Onwurah Excerpts

Thursday 19th March 2020 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I congratulate my right hon. Friend the Member for North Durham (Mr Jones) and the hon. Member for North West Leicestershire (Andrew Bridgen) on securing this incredibly important debate. I particularly commend my right hon. Friend for his work on this issue over many years and for his excellent opening remarks. Like him, I pay tribute to the hundreds of sub-postmasters who have faced unimaginable hardship as a result of this scandal, and I want to celebrate the work of Alan Bates, who has helped to secure some justice for 557 sub-postmasters.

As we have heard from Members on both sides of the House, a truly shocking number of individuals and families have had their lives impacted by the shameful way that Post Office Ltd has conducted itself throughout this process. Hundreds of sub-postmasters have been accused of fraud and forced to pay back thousands of pounds. They have faced bankruptcy and conviction, and financial compensation alone will never repair the damage caused.

Speaking as a former software engineer myself, I am upset and truly disappointed at the way in which technology has been used as an instrument of torture. An IT deployment of this kind—one of the most expensive in the history of the United Kingdom—should have had users and people at its heart. It should not have been turned into a living nightmare—a living nightmare that continues for many sub-postmasters to this day.

Many MPs have told the stories of sub-postmasters from their constituencies. In Newcastle upon Tyne Central, sub-postmasters have suffered mental health problems brought about by this scandal. One young woman affected was still a teenager when convicted of fraud, and she has faced unemployment and financial ruin. As we have heard from other right hon. and hon. Members, she has been ostracised from her community and shunned by friends and neighbours. Sadly, her case is far from unique, and I want to pay tribute to all those who have suffered in this way.

In December, after a long trial in which the Post Office’s heavy-handed actions against its own staff came to light, it agreed to pay a £58 million settlement to the 557 sub-postmasters who had brought action against it. In his verdict, Mr Justice Fraser stated that the Post Office treated its sub-postmasters in

“capricious or arbitrary ways which would not be unfamiliar to a mid-Victorian factory-owner.”

He also described its long-standing defence of the Horizon system as

“the 21st century equivalent of maintaining the earth is flat.”

We appear to have a Dickensian, flat earth society running our precious network of local post offices.

On the Criminal Cases Review Commission’s review of the convictions of those affected by the Horizon scandal, such an extraordinary set of circumstances requires a bespoke response. The Government have parroted the Post Office’s line that those wrongly convicted must each bring their own individual appeal forward. However, it is simply not right to require those already in financial ruin to incur yet more costs in the fight to clear their name. Will the Government therefore consider giving the CCRC the mechanism it needs to assess the case for a group expungement of those convicted due to faults with the Horizon system?

This is a Government-owned company that has been found to have been at fault. It is therefore of the utmost importance that the Government act to improve the corporate structure of the Post Office to prevent this kind of thing from ever happening again. More should have been done to address the issue before it was allowed to develop into the scandal it is, but all we can do now is ensure that those wrongly convicted get justice and lessons are learned. Unfortunately, the close relationship that the Government have with the architects of Post Office Ltd’s vicious pursuit of sub-postmasters means that they are unable to create an environment that allows the necessary large-scale changes to happen.

I welcome the fact that Paula Vennells, the former chief executive of the Post Office who was so heavily criticised by Justice Fraser, appears no longer to serve on the Cabinet Office board, but why on earth did the Government allow that appointment to be made? Why did they not act sooner to distance themselves from those responsible for impacting the lives of so many?

As we have heard, on 26 February, the Prime Minister, in answer to a question from my hon. Friend the Member for Jarrow (Kate Osborne), appeared to commit to a full public inquiry into the Horizon scandal. When we hear from the Minister, I hope he will be able to provide more detail on the timescale and scope of that inquiry. Again, it is worth emphasising that litigation was brought to address the errors of a Government-owned company. A civil servant sits on the board of the Post Office. Its only shareholder is the Secretary of State for Business, Energy and Industrial Strategy, so more should have been done to address the scandal before it was allowed to fester to this extent. Serious questions need to be answered about the relationship between the company and the Government.

The Government appear to be content to act as the Post Office’s parliamentary organ throughout this process, claiming that the December settlement was the end of the matter. Nothing could be further from the truth for the people who are still fighting for justice, and that is why we need a judge-led independent inquiry to take place as soon as feasibly possible.

I want to say a word about the Communication Workers Union, which identified flaws in the Horizon system back in 2015 and has worked hard to secure the inquiry. It has said that it is happy to work with us to ensure that it is timely and independent. So far, we have not seen any accountability for the lives and reputations that have been ruined. That is why securing this independent inquiry will be such a big victory for sub-postmasters, trade unions and justice. The Government failed to live up to their responsibility and prevent the scandal occurring. I hope the Minister has listened carefully to the excellent contributions from all parts of the House and will use his influence to ensure that justice is delivered for the hundreds of sub-postmasters wronged and to hold those responsible to account.

Deaths of Homeless People

Chi Onwurah Excerpts

Tuesday 1st October 2019 Commons Chamber

[Luke Hall]

I am absolutely happy to meet my hon. Friend and perhaps hold a roundtable with his local authority to ensure that we are all working together to tackle this issue. There is no getting away from the difficulty of today’s news and today’s figures, and I will work with anybody who can help bring this scourge to an end.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Since 2010, homelessness in Newcastle has risen dramatically, visibly and tragically, with deaths in our city centre. Under the Minister’s Government, rough sleeping has been normalised, but it will never be normal to us. I have spoken extensively to Northumbria police, local housing associations, charities and public health officials, and it is clear that the cuts to public services are a prime cause. Will he acknowledge that austerity has caused this problem, and does he agree that it must be reversed?

[Luke Hall]

First, let me put on the record my thanks to Crisis, which I know does so much work in Newcastle, and highlight the success so far of the rough sleeping initiative, which is in the hon. Lady’s constituency and where we saw a 19% reduction in rough sleeping. She is right to highlight the importance of health services and other services available to people who are rough sleeping and homeless. This is why we have committed £30 million from NHS England to address rough sleeping over the next five years and £2 million in health funding to test models of community-based provision.

Building Safety

Chi Onwurah Excerpts

Thursday 5th September 2019 Commons Chamber

[Robert Jenrick]

I am very happy to work with my hon. Friend on that issue. We have already published updated advice notes on fire doors. It is an important issue that we want to take forward.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Two years after Grenfell, buildings in Newcastle remain with this dangerous cladding, so will the Secretary of State admit that the privatisation of building safety, in effect, with building owners able to pick and choose who inspects them, has failed? Will he review the system generally and give local authorities more control, oversight and resource, as Newcastle City Council has requested?

[Robert Jenrick]

The hon. Lady can see that we are doing a root-and-branch reform of the building safety system, both in the interim and in the long term with the building safety Bill that will come forward as soon as possible. I am working very closely with local authorities, and today of course I have announced £14 million of additional funding that will help to support them to use their existing powers robustly.

Oral Answers to Questions

Chi Onwurah Excerpts

Monday 22nd July 2019 Commons Chamber

[James Brokenshire]

I agree with my hon. Friend and am grateful to him for highlighting the evidence that he rightly raised. We are working with the Department for Education on the review of relative needs and resources, including by jointly funding specific research on the need to spend on children’s services. We want to champion good practice and to ensure that it is there to drive change and improvement in children’s services. My hon. Friend is right that it is about delivery and not simply looking at the funding.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The Secretary of State says that he is working desperately hard to give certainty, but does he recognise that officials in Newcastle City Council are also desperate to ensure that the children in our city receive adequate care from next April, and they cannot do that job if they do not know how much funding will be available to support children in Newcastle?

[James Brokenshire]

The point that the hon. Lady makes is one that I recognise and one that I did address at the Local Government Association conference. We are approaching a spending review—a new period for the overall funding for local government—and I want to ensure that we give certainty as early as possible. That is what we are working to achieve, so the planning that she and others want for councils is absolutely what I want, too, and it is why I am doing all I can, within my powers, to see that that happens.

Leasehold Reform

Chi Onwurah Excerpts

Thursday 11th July 2019 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I congratulate the Select Committee on its report. The fact that in 2019 so many British people owe their homes to a feudal property relationship is absolutely astonishing. I am proud that the Labour party has announced that it will end this ancient and anachronistic practice and ensure justice for leaseholders.

I want to use the brief time that I have to highlight the ongoing misery of constituents whose case I raised in my Adjournment debate of 1 November 2017; one is watching here today. As you know, Mr Speaker, the St Thomas area of Newcastle is one of the most beautiful parts of what is a very beautiful city. It has a large number of fine houses that anyone would be proud to call home, but for some they have become a prison—the families with children uncertain whether they can afford to pay mortgages that they cannot change; a refugee whose family have outgrown their home but who cannot sell it; a pensioner who wants to move to be near her grandchildren but cannot do so; and a couple in their 70s faced with six flights of stairs and rising maintenance costs. The charity that owns the freehold, the St Mary Magdalene and Holy Jesus Trust, refuses to extend their leases or sell the freehold. The trust was formed to support the Freemen of Newcastle, who also date from feudal times and the ancient guilds of our city. Today they are not generally considered to be among the poorer members of our society.

Section 172 of the Housing Act 1985 restricts the 1967 legislation to exempt charities from selling or extending the lease of houses on their land. The National Trust is in a similar position and, in response to the Committee’s consultation, offered to buy back properties whose freehold it did not want to sell. In the past, the Mary Magdalene Trust has offered to sell the freehold, but more recently it has changed its position, apparently to maximise its land assets. In so doing, it is causing misery.

The Minister is familiar with the situation and in the past has reassured me that a solution was in the works. My constituents had their hopes raised when it was reported that the trust was willing to sell the freehold, but in fact it was willing to charge residents thousands of pounds just to consider the option of perhaps allowing them to extend their leases for tens of thousands of pounds more. I hope the Minister will condemn that behaviour by the trust.

I also hope that the Minister will condemn the Charity Commission, which, in some disgraceful correspondence with me, said that it would be wrong for the trust to forgo the income that it could receive—presumably when the leases expire and my constituents are dead or on the streets. This is an organisation whose chair, Baroness Stowell, recently said:

“Charitable aims cannot justify uncharitable means”,

and:

“All charities, not just the big ones, have to recognise that they have to demonstrate charitable behaviour and charitable attitude.”

Does the Minister view what I have described as charitable behaviour? Will she ensure that the trust follows the example of the National Trust and offers to buy back leases at market value? Will she press the charity to allow the option of enfranchisement, as committed to the Minister previously? Or will she leave the residents with no option but to await a Labour Government and justice for leaseholders?

--- Later in debate ---

[Sarah Jones (Croydon Central) (Lab)]

I congratulate my hon. Friend the Member for Sheffield South East (Mr Betts) and all the other members of the Housing, Communities and Local Government Committee on such a powerful report, and I thank the 700 or 800 people who got in touch with the Committee to give their views. We have heard this afternoon how powerful the feelings are across the country. I thank the APPG, of course, the Leasehold Knowledge Partnership, of course, and the National Leasehold Campaign, of course, all of which have done extraordinary work in this area. I also pay tribute to all the Members who have spoken today, but I give particular thanks to the Conservative Members on the opposite side of the House. It is not necessarily comfortable for an MP to stand up and call for action from their own Government, but they have done that well and with dignity and great conviction.

We have all heard some of the stories many times, and the time has come to act. One in four homes in this country are leasehold homes, which means that up to 6 million people have basically bought homes that they think they own when they do not. We have heard horrific cases of people trapped in homes they cannot sell, people being ripped off with extortionate service charges, and people being threatened with eviction for absolutely no good reason.

No other major economy has this feudal-style system. Every other major economy has moved away from leasehold and towards fairer, more transparent systems of ownership. Scotland has abolished leasehold, transferring all properties held on long leases to outright ownership, and action has been taken in Northern Ireland. Other countries have demonstrated that alternative models of ownership can work. There are co-op models, and the Australian system has spread to other countries—Canada, New Zealand and Singapore. This is being done everywhere else, but not in the UK.

This week, the Labour party announced a policy that will bring leasehold into line with every other major economy, and I brought a copy of the document with me today. We do not have many printed copies, but I have one here for the Minister, because she will hopefully appreciate reading it. We talked to the Law Commission. We spent a lot of time listening to the debates, reading the Select Committee’s report, and listening to the APPG and the campaigners, and we talked to property lawyers. Our policies are comprehensive and sensible, and worth being looked at by the Government. There are two parts, and the first is what we do with new leasehold properties going forward.

Of course, there is no argument at all for new leasehold houses. We should be looking to abolish new leasehold flats, too. The second part of the package, of course, is to help the up to 6 million people living in leasehold homes by giving them new rights and saving them thousands of pounds.

The Government have paid lip service to this. They know the system is broken and they have acknowledged the problem, but they have failed to act. As my hon. Friend the Member for Leigh (Jo Platt) said, they have made over 60 announcements on leasehold since 2010, but none of their proposals is aimed at helping the 6 million people trapped in leasehold homes right now and none of their proposals has led to any legislation.

Going beyond that, as has already been mentioned, the Government are actually propping up the system. The number of leasehold homes is increasing and £1 billion of Help to Buy money has gone directly to new leasehold homes, which is nothing less than a scandal.

As my hon. Friend the Member for Heywood and Middleton (Liz McInnes) said, Labour proposes to end the sale of new leasehold houses, with direct effect, and to legislate to end the sale of new leasehold flats. We want existing leaseholders to be able to buy the full freehold ownership of their home for no more than 1% of the property’s value. Where does the 1% figure come from? It was suggested by the Law Commission; it is well evidenced; and we think it could work.

Labour would end ground rents for new leasehold homes, and as has been said, we would cap them for existing leaseholders at 0.1% of the property’s value, up to a maximum of £250 a year. Again, where does that come from? It comes from the Select Committee, and the hon. Member for Walsall North (Eddie Hughes) has tabled the Ground Rents (Leasehold Properties) Bill, too. Again, the proposal is well evidenced and sensible.

Labour would give new rights to empower leaseholders to hire and fire their managing agent, or to take over the management of their home themselves. Importantly, we would crack down on unfair fees and contract terms by publishing a reference list of reasonable charges, not dissimilar to that which the Government introduced in the Tenant Fees Act 2019. We could have a similar system. We want to see transparency, which we would introduce on service charges, and we want to give leaseholders a right to challenge rip-off fees. As we have heard, such fees are complex, difficult and expensive.

We think the formulation of acting “whenever parliamentary time allows,” after nearly 10 years of Conservative government, is unacceptable. As the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown) said at the start of the debate, this feudal system has been in place for around a thousand years. After a problem has existed for a thousand years, parliamentary time should allow for us to act. As my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) said, Labour Members and Conservative Back Benchers would support such legislation if it were introduced by the Government.

I end with a series of questions, which I would be grateful if the Minister answered. Does she recognise that we are the only developed country in the world that has failed to move away from the feudal leasehold model? Does she accept that the number of leasehold homes has gone up, and is still going up? Does she accept that 100,000 people are trapped in unsellable homes because of the leasehold scandal?

[Chi Onwurah]

Some of them are my constituents.

[Sarah Jones]

Exactly. If the Minister does not accept that 100,000 figure, what work is her Department doing to understand what the number is? What possible reason can she give, after the 60 announcements and the body of evidence we have heard of today, for legislation not having been introduced? When will the legislation be introduced? Can she confirm that none of the Government’s proposals will help the up to 6 million people who are currently leaseholders, and what will she do about it? England is the only place in the world that has failed to move away from this system, and it is time we caught up.

Jewish Community: Contribution to the UK

Chi Onwurah Excerpts

Thursday 13th June 2019 Westminster Hall

[Christian Matheson]

My hon. Friend is absolutely right. We could be here all afternoon simply listing the different organisations and schemes that Jewish community groups run either on their own or with other community groups. Many of them slip under the radar, but none of them fails to have an impact.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I thank my hon. Friend for giving way and also for his excellent opening speech. If it had one fault, it was that it did not mention Newcastle, which I shall now do. I grew up in Newcastle, and, like him, I did so not understanding enough about the contribution of the Jewish community to a great city.

I was surprised and encouraged when I learned about of the contribution of Herbert Loebl, who, like me, was an electrical engineer. He came to Newcastle at the age of 16 in 1940 and built some of our great high-tech businesses, which still make a contribution to our economy today. Newcastle might have a small Jewish community, but it makes a brilliant and strong economic contribution to our city now, just as it did in the past.

[Christian Matheson]

I am most grateful to my hon. Friend for reminding us that the contributions of members of the Jewish community can be found everywhere and in every walk of life.

The Jewish community has a great story to tell. Far from being insular, it is integrated, as we have just heard, and is integral to our society. Its members are generous with time, spirit and philanthropic giving, but once again the Jewish community feels under threat. It seems that as soon as there is the first sign of society’s cohesion breaking down, antisemitism returns and is one of the first signs of that breakdown. We must deal with that racism head on, but we must also deal with it by remembering and welcoming the Jewish community’s massive, positive contribution, individually and through collective groups. I, for one, am grateful for their contribution to our nation.

High Streets and Town Centres in 2030

Chi Onwurah Excerpts

Thursday 13th June 2019 Westminster Hall

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a pleasure to serve under your chairship, Mr Stringer. I thank the Committee, its members and its staff for the excellent report. I congratulate my hon. Friend the Member for Sheffield South East (Mr Betts) on securing this debate and on his opening remarks, which were wide-ranging, informative and comprehensive, as well as excellently delivered. I thank all the hon. Members here for a reasoned debate, delivered in a good atmosphere, considering shared concerns about the future of our high streets at this important time.

This week, Arcadia, one of the biggest retailers in the country, narrowly avoided a collapse, which would have put 18,000 jobs at risk. Even so, Arcadia workers still face 50 shop closures and 1,000 job losses; my hon. Friend the Member for Bedford (Mohammad Yasin) highlighted some of the impacts of that on his constituency. Arcadia will not be the last retail group to struggle. Too few retail magnates have not given sufficient thought to the long-term sustainability of their retail groups, leaving workers and consumers to pay the price. Mike Ashley is as successful in his self-proclaimed role of saviour of the high street as he was in selling Newcastle United. The Business, Energy and Industrial Strategy Committee has compared working conditions in Sports Direct to “a Victorian workhouse.” That is not the kind of high street we want to see.

As my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) highlighted, the identity of our town centres is wrapped up with the retail sector, which is the largest private sector employer in the UK, employing one in 10 of our workforce. When I walk down Northumberland Street or through Eldon Square in Newcastle and see the vibrant mix of consumers and traders, I am grateful that my city centre appears to be weathering a very difficult trading environment; but that cannot be said for all cities and especially not for our towns.

Indeed, as this report highlights, there are often differences within towns. My hon. Friend the Member for York Central (Rachael Maskell) spoke about some of the innovative practices that some businesses on her high street were using to attract more foot flow. In Newcastle, Grainger market, our Victorian gem, is putting on tea parties and gastronomic delights in order to do the same thing.

What this review tells us is that, if our town centres are to survive to 2030, they must be grounded in community. Local authorities have a responsibility for the economic and social wellbeing of the places and communities they serve, but the scale of the issue demands action from central Government to ensure that our local authorities have the necessary powers to do their job, as hon. Members on both sides have emphasised. That must be backed by proper funding—much, much more than the pitiful £1.2 million put into the regeneration pilot in 2017. Our high streets and town centres anchor our local economies and offer jobs, services and a sense of place, but that is declining year on year. Every retail location type—high streets, retail parks, shopping centres—saw the number of occupied units decline at a faster rate in 2018 than in 2017. The high street vacancy rate rose from 11.2% to 11.5%; in retail parks it jumped from 4.9% in 2017 to 7.1% in 2018. There are 50,000 empty shops in the UK. In shopping centres, 6% of empty space has been empty for two years. On the high street, that figure is 5%. There have also been more than 100,000 job losses in retail over the past three years alone.

Some people say it is inevitable that online shopping will kill the high street, but it is wrong to think that the rise in internet retail equals empty shops and job losses. The impact of technology on our society involves political choices, and in this case the impact is due to Government inaction. As we see in this report, many shoppers still enjoy shopping as an experience; the most successful high streets are those with a good mix of retail, leisure and services, which provide a vibrant community space, not just a collection of businesses.

Under this Government, we have seen chronic under-investment in infrastructure, particularly outside London and the south-east. For example, the north-east receives less than one third of London’s transport spending per capita. According to the Local Government Association, outside London we have lost 117 million miles of bus routes—nearly half of all council-subsidised services—since Tory austerity began in 2011.

Every month, 60 bank branches and 250 free cash machines close, with devastating effects on access to cash in rural areas, and despite repeated promises to safeguard our post offices, we face 2,500 potential closures over the next year. We welcome today’s announcement by UK Finance that the banking sector will work to support people’s free access to cash, but it is not enough. Will the Minister take note, follow Labour’s lead and ban automated teller machine charges?

This Government have not only failed to take action but repeatedly ignored their own warnings. Despite the recommendations of this report, they have chosen to extend permitted development rules, which, as we have heard from many hon. Members, can effectively depopulate town centres in the day, which has an impact on retail and restaurants and makes it harder to enforce high standards for new homes. Will the Minister take note and suspend any further extension of permitted development, as hon. Members have called for?

In their response to this report, the Government refuse to recognise that online retailers should be contributing more. The system is past its sell-by date, having been

“designed in 1990, when businesses made money in a very different way.”

Those are not my words, but those of the Conservative Mayor of the West Midlands, Andy Street, who understands that high street retailers are being crippled by an outdated business rates system and has called for online retailers to pay more tax—as indeed have hon. Members such as the hon. Member for Hertford and Stortford (Mr Prisk) today.

The Tories have failed our high streets, failed our retail sector, and failed our economy. They have no claim to be the party of business. As the hon. Member for Dunfermline and West Fife (Douglas Chapman) highlighted, a no-deal Brexit would be catastrophic for businesses, extending that failure and wrecking many of the businesses on our high streets and in the retail sector. I ask the Minister to rule out a no-deal Brexit—[Interruption.] I am sure it is within her pay grade to do that. Will she at least say that she will not support a Conservative candidate who supports a no-deal Brexit?

Labour’s industrial strategy will rebuild our economy for the many. Unlike this Government, we care about every part of the economy. As part of our “innovation nation” mission, we will raise productivity and job quality in sectors such as construction, agriculture and retail that have been wholly neglected by the Government’s industrial strategy. Labour would fund a new catapult centre to boost the take-up of innovation in the retail sector, creating higher wages and better jobs on high streets across the country.

Our high streets are reaching crisis point, which is why Labour has an emergency five-point plan to resurrect and rebuild our town centres. I will finish with that plan. First, we will ban ATM charges and stop post office and bank branch closures. Secondly, we will provide free bus travel for under-25s. Thirdly, we will roll out free public wi-fi in town centres, so that we have networked centres that encourage people to spend their time as well as their money. Fourthly, we will establish a register of landlords of empty shops in each local authority, making it easier to bring shops back into use. Finally, we will introduce an annual revaluation of business rates, ensure a fairer appeals system and review the business rates system to bring it into the 21st century.

Labour’s plan will revive and reinvigorate our high streets, which must urgently adapt. We will take the urgent action required; will the Government follow in our plan and commit real resources to ensuring that our town centres can survive and thrive?

[Graham Stringer (in the Chair)]

Before I call the Minister, I will say two things. First, my notes said that the Minister was Kit Malthouse, but you are no less welcome for being unexpected, Minister. Secondly, can I ask you to leave a short space of time at the end of your speech for the Chair of the Committee to wind up?

Oral Answers to Questions

Chi Onwurah Excerpts

Monday 8th April 2019 Commons Chamber

[James Brokenshire]

I acknowledge my hon. Friend’s ingenuity in putting her question. Her council has submitted a £14 million bid to the housing infrastructure fund, which we obviously want to see delivering more homes and building the homes our country needs. I can assure my hon. Friend that we will look carefully at this bid. It is a competitive process, but I am encouraged by what she says.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

15. What steps he is taking to increase the provision of housing in Newcastle.

[The Minister for Housing (Kit Malthouse)]

Since 2010, over 21,850 new homes have been delivered in Tyne and Wear. In March, we announced over £16 million from the housing infrastructure fund, which will help to unlock a further 5,000 homes.

[Chi Onwurah]

I publish my constituency casework on my website, and every month since I was first elected in 2010, housing has been one of the top three issues constituents bring to me. Does the Minister agree that to deliver choice and affordability for my constituents, the right resources and powers need to be devolved to the region as part of the North of Tyne deal? We know what our housing need is.

[Kit Malthouse]

Given that Newcastle is one of the two mighty northern cities that made me the person I am, the hon. Lady will understand that I am keen to see that wonderful city, where I spent three fantastic years at university, achieve its aspirations. I know that the local authority has constituted a housing delivery board, and we are doing our best to give it the resources it needs to deliver housing from Ousemouth to Kenton Bank Foot to the Helix development in central Newcastle. I am certainly more than happy to help her in chivvying it on to fulfil the aspirations of the Geordies who need homes.

Local Government Funding

Chi Onwurah Excerpts

Wednesday 27th March 2019 Westminster Hall

[Thelma Walker]

I believe that devolved local governance, with local knowledge of the needs of local communities, is really important, and we have lost that.

Early intervention was cost effective in my previous career, and it transformed people’s lives. They were not left to go through the stress and trauma of reaching crisis point. It is better for the health and wellbeing of our communities to have that support in place, but Kirklees was forced to make savings of nearly £200 million over the past nine years. Over the next three years, the council has to find a minimum of £38 million in savings. That has detrimentally affected my constituents’ lives.

In particular, there are significant and growing pressures on high needs in Kirklees. The Government have acknowledged that Kirklees is the second most underfunded council in the high needs block of the dedicated schools grant.

One of my constituents has been in contact with my office for some time about their two children, who have been diagnosed as being on the autistic spectrum. They have been trying to establish appropriate support for their children through education, health and care plans. It has not been straightforward. Cuts to funding mean that the local authority is struggling to give the family the necessary support.

The pressures are also visible in housing. Another of my constituents, who lives in local authority housing, has been subject to verbal abuse and harassment from their neighbours. They have applied to move, but the housing provider has not been able to facilitate relocation because it does not have suitable places to move them to. It has been able to offer only additional security measures to reassure the constituent. Local authorities and local government workers are doing what they can, but they do not have the resources to do what they need to do. Hard choices have had to be made to protect care for the most vulnerable.

I know that these stories will sound familiar to many hon. Members today. Sadly, such stories are by no means unique to my constituency. But there is an alternative; it does not have to be like this. In Finland, local government has a lot of autonomy, and there is a greater level of responsibility for policy and delivery in areas such as education, healthcare, social services, planning and infrastructure. Decision making is closer to the people and seeks to be responsible for their needs. In Finland, policy is geared towards commitments to provide housing where it is needed, support those who cannot care for themselves, and provide accessible low-cost childcare to families.

Finland has also trialled a universal basic income. Policies are focused on delivering positive outcomes for citizens on health and wellbeing, and on reducing inequality. Marking those policies as priorities is important and effective. For the second year in a row, Finland has been named as the world’s happiest country, which cannot be a coincidence. There are some real lessons to take forward from countries such as Finland, which could be used to inform the way local government operates in the UK.

Labour is investing in delivering effective and positive change for local government, our communities and the families within them. The next Labour Government will genuinely end austerity and put an end to this crisis. At the last election we pledged £8 billion for social care. We also pledged an additional £500 million a year for Sure Start and early intervention services, to reverse the cuts that have closed centres across the country and to ensure that all children have the best start in life.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I congratulate my hon. Friend on securing the debate today, when we are all thinking about and debating Brexit, and on recognising the impact on services of cuts such as the 50% cut to central Government funding for Newcastle City Council. I want to mention one additional service: litter. It is an issue for my constituents, and children are writing to me to ask why their environment is covered in litter—

[Mrs Anne Main (in the Chair)]

Order. Before we go any further, as you can see the Opposition side is very heavy with speakers. There is a list of speakers, and I wish to get everyone in.

--- Later in debate ---

[Dan Jarvis (Barnsley Central) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Main. I congratulate my hon. Friend the Member for Colne Valley (Thelma Walker)—a near neighbour of mine—on securing this important and timely debate.

I rise to speak as someone who, both as a Member of Parliament and as Mayor of the Sheffield city region, works very closely with our local authorities. Not only do I lead the combined authority of Barnsley, Doncaster, Rotherham and Sheffield, but through the Yorkshire leaders board, I work very closely with all of Yorkshire’s other local authority leaders. As hon. Members will know, the work of our local authorities is critical to the communities that they are there to serve.

I was out on the doorstep in Barnsley at the weekend talking to my constituents and, although some of them wanted to talk about Brexit—completely understandably —many of them wanted to talk about other things, including bins, potholes, parking, antisocial behaviour and, of course, housing. Those are incredibly important issues that fall to local government.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Will my hon. Friend give way?

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[Mrs Anne Main (in the Chair)]

Given that a Member has just withdrawn from the debate, we now have a little more time for colleagues to speak, so I am extending the limit to seven minutes with immediate effect. Some of you have noticed that the clock has shifted on somewhat. We suspended on the point of an intervention, but perhaps you would like to save it for your speech, Ms Onwurah.

[Chi Onwurah]

indicated assent.

[Mrs Anne Main (in the Chair)]

We will return to where we left off. You have five minutes and 47 seconds, Mr Jarvis.

--- Later in debate ---

[Dan Jarvis]

Thank you, Mrs Main. I am happy to give way to my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwura).

[Chi Onwurah]

I thank my hon. Friend for giving way so graciously. He is absolutely right: when we knock on people’s doors, we hear about the issues that matter to them. Increasingly over the past nine years since I was elected, constituents have told me that litter is destroying the environment in which they and their children live, because of central Government cuts to local authority and police funding.

[Dan Jarvis]

My hon. Friend raises an important point that is often raised with me by local residents, as is fly-tipping, which is a big concern for many of my constituents. One of my local residents, Kevin Osborne, has been running a long-standing campaign against the fly-tippers, as has Barnsley Council, which has taken decisive, innovative action to prosecute them. My hon. Friend raises an important point that is of great concern to our constituents.

Before the Division, I was talking about important local issues that fall to local government. We all instinctively understand that councils and councillors work hard every day to improve the lives of our residents, but they face a funding crisis. Austerity has caused huge damage to communities across the country. It has undermined the way we protect children at risk, disabled adults and vulnerable older people, and it has reduced the quantity and quality of community services such as street cleaning, libraries and rubbish collection.

We should be honest about the fact that reduced funding is not just about numbers on a spreadsheet, but about a reduction in the capacity to invest in prevention. The cuts represent a false economy. If councils cannot fund sufficient support for older people, more of them will end up being admitted to hospital. Less money for children’s services means our young people will only get by, rather than thrive. Failure to invest in public transport stifles economic growth, isolates communities, reduces social mobility and damages our environment. Those are just a few examples of an austerity agenda that lacks any form of long-term strategy.

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[Yasmin Qureshi (Bolton South East) (Lab)]

I congratulate my hon. Friend the Member for Colne Valley (Thelma Walker) on securing a vital debate, and I pay tribute to council staff. It is rightly fashionable to pay tribute to emergency staff in the health, police and fire services, but sometimes we do not recognise the work done by council staff day in, day out, and by the council leaders and cabinet members who must deliver, on a daily basis, the services our constituents want.

[Chi Onwurah]

I agree with my hon. Friend, and want to emphasise that councillors and officials in Newcastle City Council are under huge pressure, working not to implement the cuts for the public. They deserve our thanks.

[Yasmin Qureshi]

I thank my hon. Friend for that intervention.

We are all aware of the fact that post-industrial towns and cities in the north of England such as Bolton have been hit hardest by the deep cuts to local government spending. The idea that the Government sometimes project—that austerity hits everyone equally—is nonsense. The cuts are nothing less than politically motivated. The heaviest have been in the most deprived regions that are often thought of as economically left behind. That is compounded by the fact that those areas have the highest levels of poverty and a lower capacity to mitigate cuts through local taxation or asset sales.

My local council, Bolton, has lost about £l billion in spending power since austerity began in 2010. That has impacted on social care, with adult and child services taking the biggest hit, despite being the areas with the highest demand. As many hon. Members have said, we have an ageing population and therefore the impact on the social care budget is getting bigger. More and more children are being taken into care, meaning that the amount of money required is increasing.

Colleagues have mentioned the pressures on local authorities. For example, over the past three years, Bolton Council’s adult services department had to find more than £10 million of savings, including £8.8 million from children’s services. My local authority had to raise council tax, specifically to pay for social care. That led to its critics saying, “Oh, the council is raising taxes”, but nobody spoke about the fact that it had no choice. With funding cuts of 50%, what was it to do other than raise local taxation to fill that gap? The Institute for Fiscal Studies has estimated that between 2010 and 2020 local government will have had its direct funding cut by 79%. Let that sink in: 79%!

Oral Answers to Questions

Chi Onwurah Excerpts

Monday 4th March 2019 Commons Chamber

[Rishi Sunak]

I praise the work done by both Select Committees in producing some options for the social care Green Paper, and I know that they are being actively considered, as they should be. To the hon. Lady’s broader point, her characterisation is perhaps a little unfair, because good things are happening in social care. The recent publication of the delayed transfer of care statistics showed that they have halved since the peak of a couple of years ago, which shows that good progress is being made.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

6. What steps he is taking to help ensure that public services in Newcastle are adequately funded.

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

The most recent local government finance settlement confirmed that core spending power in Newcastle is set to increase by £3.4 million in 2019-20. The North of Tyne devolution deal, for which there will be an election this May, will see £600 million invested in the area and, as part of the 2017 Budget, we announced our support for the £0.5 billion investment programme for the Tyne and Wear metro system.

[Chi Onwurah]

Since 2010, successive Conservative Governments have cut funding for children’s social care in Newcastle by 40% and, at the same time, the number of looked-after children has risen by 40%, which is obviously untenable. Instead of talking about strengthening local authority funding when he has halved the amount available to Newcastle City Council, will the Minister instead say whether he agrees with the national charity Action for Children, which has called these cuts “devastating and dangerous”? Will he give us the money to look after our children?

[Jake Berry]

We have just announced an additional £400 million to tackle exactly that. The hon. Lady and I have met in her city on occasion and talked about the northern powerhouse. I am sure she has heard me say that Charles Parsons, that great Newcastle inventor, is my inspiration for the northern powerhouse. A great danger for continuing growth in the north-east of England is the unfortunate selection of the Momentum, hard-left candidate for the Newcastle and North of Tyne election. I am inspired by the engineers of the north-east; he is inspired by Ken Livingstone and Derek Hatton. My hon. Friend the Housing Minister and I are from Liverpool, and we know where that leads.