Local Government Finance

Danny Beales Excerpts

Wednesday 11th February 2026 Commons Chamber

[David Simmonds]

One of my tasks in the world of local government was to engage with that last Labour Government and the disastrous consequences of their overspending. They were completely clear with authorities such as mine that stopped work on BSF that they did not have the money to see through the promises that they were making to the public. We were told that by the Department for Education. I am very confident that my constituents understand the consequences that a Labour Government have on their politics.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

rose—

[David Simmonds]

I will give way to my constituency neighbour.

[Danny Beales]

The hon. Member is very generous with his time. I always have a lot of time for him. He is talking about our constituents in Hillingdon. Is it not the case that the financial settlement of the previous Tory Government, which also included council tax, had a 7% cut to core spending power for our constituents in Hillingdon? This spending settlement has almost a 40% increase in core spending power for our constituents. [Interruption.] hon. Member seems rather depressed about this announcement. Surely that is fantastic news for our constituents. Does he not agree with me that thank God we have a Labour Government for Hillingdon?

--- Later in debate ---

[Gareth Thomas]

If the hon. Gentleman will forgive me, I have given way to him once, and I leave him to hope to catch your eye later, Madam Deputy Speaker.

The public will get their say on the situation in Harrow in May, but the failures at Harrow council raise other questions. Reversing the decade and more of austerity for local services is clearly a priority, and the settlement that was announced in December makes a good start on that objective. Harrow certainly needs a serious examination of its funding formula, but surely raising the quality of local services needs to be more than just the responsibility of local people. In 2015, the Opposition parties decided to abolish the Audit Commission, a body that usefully challenged councils much earlier on, and helped prevent many poor management practices of the sort we regularly see in Harrow from developing and getting out of control.

[Danny Beales]

My hon. Friend makes an excellent point. Rightly, this Government are putting more money back into local government for the first time in many years. That is long overdue, but that money has to be well spent. Unfortunately, what he describes in Harrow is quite similar to the experience of my residents in Hillingdon. The independent auditors are quite damning about the council’s budgeting approach. Millions of pounds have been misallocated, and there were no opening and closing balances, well into the financial year. It was recently reported by the press that the council, in a secret deal, had written off a former Tory councillor’s debt, all while applying for exceptional financial support from this Government, so I completely agree with him. Do we not need more independent oversight and audit of local government finance?

[Gareth Thomas]

We certainly need more independent oversight of the way in which Conservative councils in outer London are managing their finances. I am completely with my hon. Friend on that score, and the story of what has happened in Hillingdon is almost as bad as the situation we have faced in Harrow over the last four years. The one bright spot has been the increase in finance that the Secretary of State has delivered for Harrow. We need a review of the funding formula for Harrow, but I welcome the settlement we have had, and I look forward to continuing to persuade him of the case for more funding in Harrow.

--- Later in debate ---

[Mr Betts]

First, there are many more councils with Labour MPs. It might be the case that Labour MPs represent councils with higher levels of deprivation. That might be the simple explanation.

[Danny Beales]

I am an MP with a Conservative council, and a colleague from the Conservative Croydon council area—[Interruption.] Conservative Members cheer; unfortunately, it is a bankrupt Tory council, but luckily this Government are stepping in, have followed the deprivation and the need, and are properly funding that council, regardless of its political colour.