Local Government Finance

Debate between Clive Betts and Lyn Brown

Tuesday 5th February 2019 Commons Chamber

[Mr Betts]

That is quite a good record. If the hon. Gentleman looks back, he will find that one of the problems was the lack of regulation of financial institutions, but the Conservatives criticised Labour for regulating too strongly throughout that period.

I will try to be charitable to the Government by saying that I can welcome some elements of the spending review, including an extra £650 million for social care. However, that has to be set against the LGA’s analysis of a £1 billion deficit in both children’s and adult social care, which will rise to £3 billion for each in 2025. I can welcome the fact that the spending power of councils as a whole will not fall in real terms—there is a 2.8% increase in cash terms—but that is spread differently across various authorities, and is cushioned by increases in council tax. Those increases bring in more money in richer areas, of course, and those are the areas that have received the smallest cuts to their grants since 2010. Those two things do not sit well together.

Sheffield has seen a 50% cut in grants since 2010 and major cuts to services. Social care services for both children and adults overspent by £15 million last year and will do so again this year. This is not a local authority out of financial control. It has not yet used its reserves, but next year, for the first time, it is planning to do so. Of course, that can be done for only a limited number of years. Many authorities across the political spectrum are in the same position.

Care is very important, but there are other services to consider. Sheffield and most authorities have done the right thing by concentrating on care, because they have statutory responsibilities to the elderly, children in care and people with disabilities, but National Audit Office figures for cuts to other services since 2010 show that private sector housing has been cut by 60%, that traffic management and road safety has been cut by 60%, that recreation and sport has been cut by 50%, that libraries have been cut by 30%, and that planning and development has been cut by 50%. Those cuts are hitting communities. In the end, it is not councils that are hit by such cuts; it is communities. It has happened in my city, where libraries are having to be staffed by volunteers, grass-cutting is done less often and private sector housing officers are not sufficient to bring selective licensing on the scale that we would like. There are cuts to funding for road safety, with bus routes scrapped, and children’s centres and youth centres closed. That is happening in the constituencies and local authorities of Conservative Members, too. What worries me is that as most people do not have family members in care, they see the other council services: parks, buses, libraries, road maintenance and refuse collection. Those are the services that matter to them, but they are the services that are subject to the biggest cuts of all.

[Lyn Brown (West Ham) (Lab)]

My hon. Friend is making a fabulous speech. I really appreciate what he says about culture and the role of libraries, leisure centres and parks. They are really important for physical and mental health, but people do not appreciate that.

[Mr Betts]

Absolutely right. We hear people start to say, “What is my council doing for me? What am I getting from it? I’m paying a lot more as council tax rises by 6%, but I’m getting a lot less.” We should all worry about the impact on and support for local democracy, and local councils as a whole, if that continues and people think that they are paying money into the system but getting nothing out. There was something very wrong with the announcement of another cut to the public health grant of £80 million in the very week in which the Government promoted their new long-term funding plan for the NHS and said that prevention would be more important in the future. Those two things just do not fit together.

There have been two clear facts since 2010: first, local government has been subject to bigger funding cuts than any other sector of the public realm; and, secondly, within those cuts to local government, the biggest have been in the poorest areas. Those two facts are absolutely clear. Looking ahead, how can we deal with that? First, there has to be a bigger pot of money for local councils in the spending review. The answer is very simple. The Housing, Communities and Local Government Committee has welcomed 75% retention of business rates. It also said that that money should not be used to replace public health and other grants. The money needs to be kept in place and used to help to fund the gap in social care and to reverse some cuts to the other services I have just described. That money needs to be kept in local government, not used to mop up other grants that are going to be cancelled.

On the funding review, there is a question of not just the totality of the money, but how it is distributed. I accept that one area’s fairness will possibly be another area’s unfairness, and we will have different views, but taking deprivation out of the foundation element—taking money away from deprived areas and moving it to others—is very difficult to justify. I say to the Secretary of State that this is a serious exercise. I hope that in the end the Government do not get to a point where they use that mechanism as a way of financially manipulating money into Conservative areas, because that is the suspicion among Labour Members. I accept that this is a difficult and complicated job, but the Government need to be very careful that the process does not become seen as an exercise in financial gerrymandering. That would be very sad for local government, as well as for the people we represent.

There are two challenges for the period ahead. Let us all stand up for local government and ensure that it does better in the next spending review and has a better allocation of resources. Let us then make sure that those resources are fairly delivered. I am sure that we will have a lot more to say about that in the future, but those are the two tests by which I will judge next year’s spending review.

National Arthritis Week

Debate between Clive Betts and Lyn Brown

Thursday 20th October 2016 Westminster Hall

[Lyn Brown]

rose—

[Mr Betts in the Chair]

I say to the hon. Lady that four other hon. Members want to speak, and there are only 20 minutes left.

Local Government Procurement

Debate between Clive Betts and Lyn Brown

Thursday 13th March 2014 Commons Chamber

[Mr Betts]

I am afraid that I cannot provide a great deal of further enlightenment. We did not receive much evidence relating to the environmental elements of local government commissioning. What was clear to us, however, was that, although cost is obviously very important to councils at this time, other important issues, such as the quality of service, economic and social added value, and indeed environmental impacts and implications, should be considered by councils as part of their procurement strategies.

[Lyn Brown (West Ham) (Lab)]

I welcome my hon. Friend’s statement. As the report makes clear, procurement is inextricably linked with local government aspirations relating to the pursuit of social value and community benefit, collaboration to obtain best value for money, greater transparency and a better understanding of risk. I particularly welcome the suggestion that there should be more guidance on best practice in procurement to increase the number of local apprenticeships and trainee opportunities. Does he agree that central Government should support that work, so that much more can be done locally to strengthen our economy and deliver good outcomes for local people?

[Mr Betts]

Absolutely. We believe that that is now a matter for central Government—the Department for Communities and Local Government and the Cabinet Office, whose commissioning academy could be used to increase skills in local authorities—and for the Local Government Association. Many examples of good practice will be sector-led. A number of councils are doing excellent work across the political spectrum in encouraging contractors to take on apprentices as part of an overall council policy, but the practice would be a great deal more effective and beneficial if it were adopted by other councils. That aim is at the heart of our report.

I thank all members of the Committee for their work. I believe that the report makes many good recommendations that will enable us to make progress. It was approved by the whole Committee, and that is the basis on which we always try to work.