Disadvantaged Communities

David Simmonds Excerpts

Wednesday 4th June 2025 Westminster Hall

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

It is a pleasure, once again, to serve under your chairmanship, Sir Roger. I add my congratulations to the hon. Member for Wolverhampton North East (Mrs Brackenridge) on securing this debate and bringing in many Members, who have articulated clearly their concerns about a variety of issues across their constituencies.

We all recognise that relieving poverty is one of the oldest and most central functions of our country’s local authorities; it has been enshrined in their duties since their inception. Many Members have referred to programmes of the past—under the last Labour Government, the coalition Government and the Conservative Government —and this debate, fundamentally, is about how we tackle this most effectively. There is no view that these issues are not important; it is simply a question about the most effective way of bringing about that relief, which we all wish to see. Indeed, levelling up, which was fundamentally about all these issues, was a key policy priority for the last Conservative Government, although it was one which, I have to acknowledge in all humility, we did not succeed in delivering in all the ways we wished to. None the less, there were some successes.

When we debate these issues in a political context, we always need to remember that it is not simply a matter of funding, as important as that is. In Wales, for example, the Government have had the benefit of an £1,800 premium over the rest of the UK in public spending. Wales has had a Labour Government for 25 years, and these issues are consistently worse in Wales—where I grew up—than they are in England. So how we spend the money to address these issues is almost as fundamental as the quantum of that spending.

[Gareth Snell]

I have always found the hon. Gentleman to be a diligent shadow Minister, and I appreciate him taking this intervention. He mentioned levelling up, and Stoke-on-Trent was one of the cities that genuinely got one of the larger allocations. The challenge was that it was mainly capital, so it allowed us to build things, but it did not allow us to have the revenue stream to staff those things to provide services. Would he welcome any move by this Government—I suspect that this is coming—to put more into revenue funding to support communities, rather than giving them the capital for big shiny things that look nice but do not actually improve the lives of people in our communities?

--- Later in debate ---

[David Simmonds]

That is a really good example of where the “how” matters. The theory, which was certainly built into the funding formula under the last Conservative Government, and indeed, the coalition Government, was that growth in housing numbers, which many Members have spoken of as important, came with the new homes bonus. So that was additional revenue funding coming into the local authority as a result of that growth. The theory was that the infrastructure spending would be followed by growth in revenue as a result of those locally made decisions. Clearly, I understand that the Minister’s Department has taken the decision to cancel that as part of the funding formula, and she will no doubt set out what the Government’s new strategy will be. But what the hon. Gentleman describes is a really good example; it is no good having one without the other.

When we look at the ICON report and other consistent reports about this issue over the years, they highlight the significance of businesses as the backbone of any local community. The availability of work, in particular, is critical not just to the economic wellbeing of a community, but to the physical and mental health of those who live there. There is ample evidence, from the UK and all around the world, of the benefits that that brings. As we all know, it is a statistical fact that no Labour Government have ever left office having reduced unemployment—it is always higher when they leave office than when they take it—and the early-warning signs so far are not good. None the less, I hope that the Government will succeed in that agenda.

[Tom Hayes]

This Labour Government have seen 500,000 people added to employment since the election in July, which is a point that we should reflect on. But does the Conservative party commit to ending child poverty? Is that an explicit goal of the Conservative party under the current leadership?

[David Simmonds]

Ending child poverty has been a long-term commitment of the Conservative party. Reference has been made, positively, to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and the work that he did with the Centre for Social Justice, which enshrined that as a policy agenda during the years of the coalition Government. Again, this comes back to the question of how we most effectively achieve that. Evidence from across the country shows that growing up in workless households is one of the things that creates intergenerational poverty. The opportunity to grow up in a household where somebody works, even if it is only part time to begin with, is a fantastic boost to a child’s life chances. There are many other points within that.

[Ms Billington]

Is the hon. Gentleman prepared to accept responsibility for the significant increase in child poverty caused by the two-child benefit cap that was introduced by the last Tory Government?

[David Simmonds]

As Government Members are discovering, having voted to retain the two-child benefit cap as part of the Budget process last year, government is about making very difficult choices. The question becomes: is it fair for those who do not have children and who work in lower-paid jobs to pay additional taxes to cover the costs of other families? All of us who are parents need to face that choice, and I wish the Government luck with resolving that issue as they begin to think about it.

When we look at how Government resources are deployed across the country, it is very clear in our public spending figures—I commend the House of Commons Library for the excellent research papers that it produced on this—that spending is overwhelmingly focused on the relief of poverty. I commend the hon. Member for Blackpool South (Chris Webb) for his contribution. We see in health and social care, for example, that Blackpool has around £2,000 more per capita in public spending than Yorkshire. Governments and local authorities of all parties have prioritised those issues, and that is reflected in spending on all manner of public services. However, we also need to acknowledge that government is about choices and how we go about allocating resources. What we prioritise and the way we spend that will make a significant difference.

On creating opportunity and supporting the long-term delivery of healthcare, I ask the Minister to reflect on whether the cancellation of the level 7 apprenticeships programme, which is what trained specialist nurses for the NHS, has been a good step in creating opportunity for adults who can train to do more higher-paid work, or whether that will—as the NHS and other bodies have highlighted—result in a significant negative impact on the pipeline of specialist nursing and medical staff. Will the Minister reflect on whether the national insurance contributions increase, which leaves councils a net £1.5 billion worse off—a £1.5 billion cut in local government spending by the Labour Government—will contribute to addressing the agenda that many Members have set out?

The winter fuel payment has been touched on. The Prime Minister has hinted that a U-turn is coming; it is clear that many Government Members will welcome that. The same applies to the two-child benefit cap and the Government’s plans around disability. Under the previous Government, there was a programme, which I think the current Government are continuing in a different form, to enable those with a disability who want to work more hours to have that opportunity. But we will all have seen in our inboxes the level of concern that has been triggered among members of the public. Ultimately, it is for Members opposite to decide how they deal with pensioner poverty, the impact of cuts to disability benefits and the impact of the two-child benefit cap, as they are now in government.

There is the fact that rough sleeping has seen a remarkable increase, particularly in England and in London specifically, under this Government—there has been a 27% increase, according to St Mungo’s, since they took office—and there have been widespread reports about the impact of a significant reduction in house building under this Government. Building 1.5 million new homes was always going to be a challenge—I think we acknowledge that across parties—but a recent Guardian investigation highlighted that there has been a collapse in house building since this Government took office.

We are seeing the implementation of all these other policies, which are a choice made by Labour Members and their Government. Will all of those choices help to address and ameliorate the issues that Members have so passionately and eloquently set out? I would argue that that is not the case, and that the negative downward trends in the economy will see more households and families facing significant challenges. I would also argue that the fact, as widely reported, that all of the growth in the UK economy is due to rising household bills—in particular, higher energy costs under this Government—will be a significant headwind for the reduction and addressing of poverty, and that the toxic combination of rising unemployment, debt and taxes will create significant headwinds when it comes to addressing the issues that Members are rightly and passionately concerned about.

[Alison Hume]

The shadow Minister is speaking quite eloquently about the failings, as he sees them, of the Labour Government, who have been in power for 10 months. Does he not accept that the communities that many hon. Members have talked about are disadvantaged because of the profound failure of the past 14 years?

[David Simmonds]

In a word, no. I do not accept that. I do not believe for a moment that we address challenges of long-term poverty and disadvantage in a short-term way, but the purpose of this debate is to ask whether the decisions being made are taking us in a positive direction of travel that will benefit those we are here to talk about or whether they will have a significant negative impact.

I have set out the evidence: the loss of the winter fuel payment, the cuts to disability support, the two-child benefit cap, and the measures in October’s Budget, which all Government Members voted for, that saw every single Department except the NHS receive no extra funding for the duration of this Parliament. Our councils are net £1.5 billion worse off as a result of the unfunded rise in national insurance. All of that will bear down on the capacity of our public sector and public services to respond.

The hon. Member for Leyton and Wanstead (Mr Bailey) talked passionately about housing. I will share an example. My local authority has seen a significant impact, in that 20% of applications for housing are now from approved asylum seekers and Chagossians displaced to the UK by the Government’s deal. All these decisions—I have set out quite a small subset of them—have an impact in the real world in our communities, and it is my contention that that impact is now pushing poverty to a greater degree and making life more challenging for many people in our country.

I will finish with this point—

[Michelle Welsh]

Will the hon. Gentleman give way?

[Sir Roger Gale (in the Chair)]

Order. No.

[David Simmonds]

I note your look, Sir Roger.

Much was made in last year’s Budget of a supposed £22 billion funding gap, which was swiftly debunked by those more expert in that field than I am. That is about 1.6% of total spending by the British Government; it is a very small amount in the national figures. I am sure Government Members will have noted that the Government borrowed £20 billion last month alone, to fund the amount by which their spending is exceeding their capacity to raise money. That is £20 billion added to debt by this Government in a single month. I am sure Members will accept, having seen the impact that debt has in local communities, that that is not taking our country in a positive direction.