Oral Answers to Questions
Debate between Clive Betts and Andrew Gwynne(3 years, 3 months ago)
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Andrew Gwynne (Denton and Reddish) (Lab)
Mr Clive Betts (Sheffield South East) (Lab)
Local Government Finance
Debate between Clive Betts and Andrew Gwynne(4 years, 2 months ago)
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Andrew Gwynne
Of course that is the worry, because several councils are edging ever closer to the cliff edge, and the number that will drop over that cliff edge is very much dependent on the actions of this Government. If they honour their word and put resources into the local communities that need them most, hopefully we can avoid more Northamptonshires. However, if they continue along the lines that I fear they will, removing resources from the areas with the greatest need but the least ability to raise their own finances, I fear for the future of the local government sector.
Mr Clive Betts (Sheffield South East) (Lab)
I am sure my hon. Friend has had a chance to read the Local Governance Research Unit’s excellent annual survey of local government finances, which shows that 10% of councils are worried that their resources will be insufficient to meet their statutory duties. We could reach that clear tipping point unless the Government act.
Andrew Gwynne
My hon. Friend is absolutely right. I will touch on that report later in my speech, but it highlights the impact of 10 years of cuts to our local councils and public services at a time of rising demand, particularly for adult social care and children’s services—the expensive people-based services. Given that the councils with greatest social need and the worst health inequalities have a limited tax base to make up for any financial losses, the problem is that the so-called fair funding formula could be what tips them over the edge.
I know that the Minister for the Northern Powerhouse and Local Growth, the right hon. Member for Rossendale and Darwen (Jake Berry), will stand up and pronounce that the finance settlement that we are set to agree next Wednesday shows that he is investing in local services, but he is a lone voice in saying so. That shows just how detached the Government are from the sector that they are here supposedly to represent, because the truth is that since 2015—just five years—local government funding across England has fallen by 32%.