Birmingham City Council

Clive Betts Excerpts

Tuesday 19th September 2023 Commons Chamber

[Michael Gove]

My hon. Friend makes an important point. Of course, there are real issues for Sandwell as a local authority, which is why we had to intervene there to deal with years of mismanagement, but it is also the case that council tax payers elsewhere in the west midlands must not be on the hook for failures that occurred in Birmingham. We will have some tough decisions to make. Central Government are prepared to extend additional financial support to the city, but our commissioners will, I am sure, be confronting the political leadership of Birmingham City Council with some necessarily difficult decisions, and I hope that we can take them in a constructive spirit together.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Secretary of State gave a list of councils where section 114 notices had been served and commissioners had been brought in. Perhaps he can confirm that Thurrock, Woking and Northamptonshire are not Labour-controlled councils. He seemed to miss that bit out when he was justifying his attack on some councils on the basis of their being Labour-controlled.

No doubt there have been problems in all these councils, but does the Secretary of State accept there is some overarching responsibility for a Government who delivered austerity to councils—bigger cuts than in any other part of the public sector—and that while by and large local government has managed extremely well, some councils have gone over the edge? Does he also accept that other councils may now be facing the brink? He has an expert unit in his Department advising him. Can he tell us how many councils he thinks are now on the brink of section 114 notices, and what action he will take to help them in advance?

[Michael Gove]

I am always grateful to the Chairman of the Select Committee. I have already pointed out that in my statement I deliberately did not choose to make political points, but given that my wonderful shadow, the right hon. Member for Ashton-under-Lyne (Angela Rayner), did choose to insert some party political points, I thought it only appropriate for me to point out that Liverpool, Sandwell, Slough, Nottingham and Croydon had all been driven to the brink of bankruptcy by Labour leadership. It is important to give that context.

It is also important to say that while I will of course continue to fight for local government finance—and, at the last spending review, I secured the biggest increase for over a decade—it is nevertheless incumbent on elected leaders and officers to continue to deliver services efficiently. That is why our new Office for Local Government will hold councils effectively to account while also highlighting the best practice that is so widespread in local government, and which sees many councils continue to deliver high-quality services without getting into the sort of trouble that Birmingham has got into.