(2 days, 22 hours ago)
Commons ChamberIt has been a wide-ranging debate. I particularly thank my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) and my hon. Friends the Members for Bromley and Biggin Hill (Peter Fortune), for Isle of Wight East (Joe Robertson), for Reigate (Rebecca Paul), for Romford (Andrew Rosindell), for Bromsgrove (Bradley Thomas), for Broxbourne (Lewis Cocking), for Keighley and Ilkley (Robbie Moore) and for West Suffolk (Nick Timothy) for their contributions. The range of issues that they and other Members covered starkly highlighted the wholesale inadequacy of the Bill in relation to the scale of the challenges that our country and our communities face.
There are big issues facing local government, which deals with some of the most difficult tasks faced by any of our public services. We know that the cost of social care is rapidly growing and will consume a greater share of the available resources. Since this Government took office, there has been a collapse in the delivery of new housing. It is down 17% in the country as a whole and there has been a 66% drop by large social landlords under Mayor Khan here in London. As we have seen in the news today, the Government’s chums in the unions have voted to extend their strikes until March 2026. The people of our second city are left with their waste uncollected and populations of rats.
As an MP for a constituency neighbouring Birmingham, I see all too often the impact of the strikes. Does my hon. Friend agree that this issue is absolutely shocking? The one thing that residents expect from their local council is a regular collection of their household waste, and often garden waste and recycling as well. Birmingham city council is failing the residents.
I thank my right hon. Friend for highlighting that issue; she has been a champion for the voices of those affected by it. While I understand that Ministers have come to the Dispatch Box time and again and said that they must wash their hands of it, the unions said in their statement today that there was “no point” negotiating with the council, because it lacked the authority to resolve the issue. The Government need to roll up their sleeves and get involved.
While our second city struggles with these challenges, here we have a piece of legislation about tinkering with structures. Not only that, but, as we learned just a week ago, it is an entirely uncosted plan. The Department has not undertaken any assessment of the cost-benefit of the measures contained in this legislation. That comes against the backdrop of the decisions of this Government which, as we know, are making the financial situation of our country more perilous by the day. In the first few months of this financial year alone, the Government borrowed £60 billion more than they raised in taxes. Borrowing costs have hit a 27-year high—a level seen only in the early days of the last Labour Government in 1998.
This Bill opens the door to a host of tax-raising powers. As we go through the pages and pages of new powers for Ministers and the Secretary of State to direct local authorities in one way or another and to instruct communities to accept this or that, we see the prospect of local authorities, which are already left a net £1.5 billion worse off by the Government’s rise in national insurance contributions, facing the maxing out of parking charges, huge increases in borrowing and big rises in business rates and council tax.
The £60 billion black hole that this Government have created just in this financial year will need to be bridged somehow. The Chancellor will be back to tell us how in a few weeks’ or months’ time, but I think we can see a clue already that local communities and local authorities will be the route by which those costs are raised. When we read what this Bill has to say about neighbourhood governance, the threat is very clear even at parish council level. Those parishes—the smallest unit of local government, but one with precepting powers—will be one of the local kitties that the Government expect to raid to finance the consequences of their economic mismanagement.
When we think of Sir Humphrey’s famous advice that it was always best to
“dispose of the difficult bit in the title”
of the Bill, because it did a lot less harm there than in the text, we can see that when this Bill talks about devolution, it devolves to the local level the responsibility for those tax rises and service cuts. Can the Minister tell the House how many libraries will close to pay for this Bill? How many road projects will be set aside? How many more communities, such as those referred to by the Labour leader of Shrewsbury, will lose their regular recycling and bin collections to pay for it? How high will council tax go?
What is the limit that Ministers will set on the tax rises that the Bill will drive? What is the maximum parking charge or fine that Ministers think it is reasonable for councils to have? What level of costs will local businesses have to face? When we debated the Bill on business rates that sits behind many of the financial elements of this Bill, Ministers said that they wanted to tax Amazon, but they ended up taxing our local high street stores and our pubs. On average, local pubs alone have to pay £6,500 extra a year, and that was before the £60 billion that this Government have borrowed in the last few months.
I am going to finish with a direct plea to the Minister, for whom I have a great deal of respect. He led his party in local government—he was its champion—and for many years, he was a local councillor too, earning a huge degree of respect in this House and in that wider family as a result of the work he did. At the Government’s favoured population level for new unitary authorities, this Bill abolishes 90% of all the councillors in England’s shires at the stroke of a bureaucrat’s pen. That is 90% of the voices of those local communities—people such as Chris Whitbread, who stood up for his community against this Government over the Bell Hotel in Epping. These people have been the voices of their communities on migrant hotels, on protecting their green belt and on air quality. They are the people who stood up for their local communities on issues such as the grooming gangs, which we heard so much about earlier from the Under-Secretary of State for the Home Department, the hon. Member for Birmingham Yardley (Jess Phillips).
This Bill could have been transformational—a chance to step up that voice of local communities. I am sorry that the Minister lost his battle to let those communities keep their voices, but he still has time to change course, to support our reasoned amendment, start again, and build a cross-party consensus on the future of local government. Let this not be the funeral oration for local democracy in England.
(3 days, 22 hours ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Mr Stuart. I am sure we are all delighted to be here—I could sense the excitement in the room when Members read the subject matter.
The Opposition commend the Government for their efforts to bring about a greater degree of fairness in local government audit. This has been a challenge for many years, in particular as a result of many larger audit businesses stepping away not just from very small public bodies, as the Minister described, but even from large local authorities, where the fees have not been large enough to justify the risks. A slew of big names, with which we are all familiar, have departed from that area of work.
We should recognise that efforts have been made over the years to address that problem. In my time in government, I was involved in launching Public Sector Audit Appointments Ltd as a means by which local authorities, working together, sought to increase the supply of effective and accredited auditors to undertake this work, but all of us, whether we represent areas with larger metropolitan authorities, or rural areas where small parish meetings sit within the audit envelope of a large local authority, are conscious of the importance of transparency. Because there is a large degree of consensus on this subject, we will not oppose the regulations this evening.
(1 month, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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It is a pleasure to serve under your chairmanship, Ms Vaz. I am sure that, for the rest of us, you are our favourite Black Country Member of Parliament, in contrast to what we have just heard from the hon. Member for Cheltenham (Max Wilkinson). I add my congratulations to the hon. Member for Tipton and Wednesbury (Antonia Bance) on securing today’s debate.
One of the pleasures of working on local government, which I am sure the Minister and I share, is hearing the passion with which Members speak for their local areas. We all recognise that patriotism is not just about wrapping ourselves in the Union Jack or speaking about our country or national football team; it starts at the level of a community, town, city and region. It is in the strength of those towns, cities, regions and communities that the strength and cohesion of the country as a whole lies. For me, as a proud outer-London MP, whose constituents like to celebrate Middlesex Day—which we have debated and heard a great deal about—it is a pleasure to be here to speak as we talk about the Black Country.
It was clear listening to the exchange just before the debate got going that there is some degree of competition, shall we say, among Black Country MPs about exactly whose constituency supplied the parts for the anchor that secured the Titanic, or manufactured the bits for Newcomen’s steam engine, and all the other things that have been spoken about so wonderfully by Members across the Chamber.
I was particularly struck by what my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) said. It is a good illustration not only of the things that pop up on Wikipedia—things that we would learn about a region we were thinking of visiting for the first time as a tourist—but of some of the detail of what is happening in the local economy, which other Members referenced. The region’s manufacturing heritage may have started 100 or 150 years ago, but the skills are still maintained today. Sometimes, those skills contribute to other brands—British and international—and to the ongoing success of our national economy.
It is good to see a region of the UK that is proud of its industrial heritage and whose representatives speak eloquently about how that heritage has continued into the modern age to support jobs, brands and identity, while moving away from the issues of pollution and industrial poor health and safety, which we know—I speak as somebody who grew up in south Wales—dogged many areas associated with industrial heritage. We are proud of that heritage, but we also know that many people who lived through and worked in that industrial past were quite keen that future generations did not experience such conditions. It is important to see how all that feeds through to the modern world.
The significance of the Black Country has been recognised for many years by Governments of all parties, but I will highlight a couple of the things about which Conservative colleagues in the last Parliament were very exercised, such as the Repowering the Black Country project. A number of Members have spoken about the impact of energy costs on businesses. We know the UK now has the highest industrial energy costs of any developed economy, and we understand why that is happening. None the less, it has been a concern for Governments for some years, and supporting those energy-intensive industries that are particularly prevalent in the Black Country and across the wider midlands with their energy costs was a high priority.
The West Midlands combined authority was allocated £1 billion of additional transport funding. As an outer London Member of Parliament, my constituents are mostly commuters—very large numbers of people move around our capital city—so I know the importance of effective, high-quality public transport. Andy Street, the former Mayor of the West Midlands, invested in the Wednesbury to Brierley Hill route to deliver rapid bus transport and open the opportunities being created across the region to a greater geographical area.
Does the hon. Gentleman recognise that it is Richard Parker and this Government who have fully funded the West Midlands Metro to Brierley Hill, and that, sadly, Andy Street left a big black hole in that budget and did not enable the link to be fully realised?
Several Members mentioned the late Queen; as she was fond of saying, “Recollections may vary.” When Andy Street left office, he was particularly proud of the contribution made by his work, especially as somebody who was absolutely rooted in that local area. He was also proud that he had not levied a precept on residents, and I know the Minister may have something to say about the impact of local government funding on households across the west midlands.
Of course, the Black Country & Marches institute of technology is also often mentioned. There is a sense that, to sustain the region’s industrial heritage for the future, there is a need to invest in apprenticeships, education and opportunities so that the new jobs being created can go to local people who have the skills those jobs require. We know the world is changing, and people need to be able to adapt to meet those challenges. Of course, the Department took the decision in 2021 to open its first non-London headquarters in Wolverhampton.
I have gone through a list of initiatives, investments and positive points, but we all recognise that our country faces significant challenges. As this is a local government debate, we must consider the financial position of local authorities in the Black Country, whose work is important to supporting local heritage. For example, we have heard from City of Wolverhampton Council’s budget consultation that it has faced unprecedented financial challenges since this Government took office. Indeed, it has never previously experienced such serious financial concerns under any party in office.
Does the hon. Member recognise that a number of our Black Country local authorities have, over the past 15 years, lost hundreds of millions of pounds of local government funding, which has led to the diminution of local government services, the closure of libraries and Sure Starts, the creation of potholes across our road network and, frankly, the degradation of our public realm? That is not an occurrence of the last year, but of the last 15. One might hope that action will be taken in the review of local government finance to set that right.
The hon. Member for Tipton and Wednesbury (Antonia Bance) did say in her introduction that she wanted to be a bit political.
It is important that we acknowledge—the Minister may wish to comment on this—that Sandwell council talked about a £19 million budget gap and the scrapping of weekly bin collections, which will have an impact on that subset of residents in the Black Country. That comes against a backdrop in which our economy is challenged and unemployment is rising. Jaguar Land Rover—mentioned by a number of hon. Members—has announced a further 500 redundancies because of the challenges that it faces.
We need to ensure that the momentum represented in some of the projects that I referred to, which has led to an improvement in the economic outlook and in the opportunities for people across the Black Country—the kind of economic opportunities that have been seized in the past and given rise to the proud industrial heritage that so many hon. Members have eloquently described—is not lost against the backdrop of a national picture of rising unemployment, increasing poverty and the loss of jobs in some of these key industries. That loss is gaining momentum. I am sure that the Minister will not just say a little about how he is proud of the heritage, but will want to tell us specifically what the Government are doing to address those issues.
Thank you, and thank you for your kind comments.
(1 month, 1 week ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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As the hon. Member for Birmingham Perry Barr (Ayoub Khan) alluded to, the House knows that the origins of the dispute in Birmingham are in the 2017 settlement of the equal pay arrangements, which created a £760 million liability for that local authority under the Labour party, and which have been undermined at every turn by the relationship between Labour’s administration in Birmingham and the unions. It is clear that that local authority and its leadership have been dodging scrutiny and accountability at every turn. They refused even to debate the local authority Conservative group’s proposals for a plan to end the strikes and clean up the city.
I have a series of questions for the Minister. What guidance will he give his seven-strong commissioner team to bring about an end to the strikes? What public health assessment are the Government carrying out of the impact of more than 21,000 tonnes of uncollected rubbish and a huge increase in the rat population in Birmingham? Will he consider withdrawing the facility time for Unite the union, which is currently refusing to go about the process of bringing an end to the strikes? Will he tell his commissioners—including Tony McArdle, whose appointment has been announced today—that Birmingham’s besieged households must not be held to ransom by the unions for a day longer? Will he tell the House who he thinks has failed the households of Birmingham more? Is it the Labour council, in leaving rats on the streets and 21,000 tonnes of uncollected rubbish in a heatwave, or this Government, who have failed to intervene to bring an end to this blight on residents’ lives?
I thank the hon. Gentleman for his questions, which I will try to answer in turn. Let me say, though, that we will take no lectures at all from the party that was in government for 14 years and saw the downgrading of local authorities across the country, including in Birmingham.
Although these are our commissioners, as the hon. Gentleman says—that is correct: they are Government appointed—let us not forget which Government appointed them. They were appointed on the watch of the previous Government. Today we are just announcing a change in the lead commissioner. We need to be careful not to politicise those people, who believe in public service and are helping out the local authority and supporting the Government in trying to turn that council around. Let us leave the politicisation of the commissioners to one side and deal with the facts.
Last time I was in the Chamber, the Conservatives were talking down the role of bin workers, as if somehow that work was degrading. At that time, I think they were suggesting that the armed forces might be brought in to collect waste and that that would somehow degrade their role. That was never going to be the case, but it was a glimpse into how the Conservatives view the workers who are affected. One thing that is absolutely certain is that the Labour party believes in the power of frontline workers and in the importance of these frontline roles. We absolutely value the role of refuse collectors, and we see the implications of waste not being collected. But we have got to be clear, too, that whatever settlement is on the table has to be lawful and affordable, and it cannot cross the red line of undermining the equal pay negotiations that are taking place. I hope that we can agree at least on that basis.
(1 month, 2 weeks ago)
General CommitteesOnce again, it is a pleasure to serve under your chairmanship, Mr Vickers. I say at the outset that the Opposition have no intention of dividing the Committee on the draft instruments.
As the Minister set out, the origin of Awaab’s law in legislation is from 2023, under the previous Government. Again, it enjoyed cross-party support in the Chamber, bringing into effect regulations to ensure that the hazards that were highlighted in that case—many of us will be familiar with them from our own constituents—were addressed effectively. For that reason, we are supportive of the measures we are considering today. In respect of electrical safety, likewise, the intention set out is one that any Government would wish to achieve.
I have two points to highlight, although I am sure that the Minister has given them some thought. All members of the Committee will have read with great interest paragraph 7.13 of the explanatory memorandum that goes with the draft hazards regulations, which highlights the Government’s assessment of the cost of implementing the proposals and the feedback from the sector. Those of us who have had the joy of being involved in housing committees and so on in local authorities are particularly conscious of the theory that the monitoring and enforcement system is financially self-sustaining by cost recovery through the fines levied under the enforcement process. I want to highlight some concerns about that. The issues we are addressing are incredibly important, but we want to ensure that, in the real world, the legislation has teeth. In particular, with issues of damp and mould—we will all know from constituency experience that they can be technically complex to resolve—we want the draft regulations to result in a material change for people, especially those whose health is vulnerable to such issues.
My final point is about electrical safety. Many of us know that accessing the necessary skilled workers to undertake such work, given the scaling up of regular monitoring and testing envisaged under the draft legislation, is a significant challenge in that sector of the market. It will be helpful to understand from the Minister what consideration has been given to how those skills will be created and developed, whether through apprenticeships, or engagement with colleges or industry. There were questions in the House today about the education sector and the Government’s actions on apprenticeships, but it would be helpful to be certain that any actions taken will not have a negative impact on the availability of the necessary skills to ensure that safer homes, in electrical terms, is an achievable and realistic objective.
(1 month, 3 weeks ago)
Commons ChamberCommunity support is always vital for development, and with 95% of planning applications already decided by officials under delegated powers, it is clear that that democratic voice can be missing. Can the Minister tell the House why, taking that in tandem with the devolution White Paper, which envisages abolishing around 75% of councillors who represent their local residents on planning committees in England, local communities do not deserve more of a say, rather than less, in the planning process?
We do want local communities to have more of a say, particularly when it comes to the development of local plans, which are, as I have said, the best means for local communities to shape development in their areas. When it comes to the national scheme of delegation, which is the point the hon. Gentleman is really driving at, he knows that as things stand every local authority across the country has its own scheme of delegation. There is a huge amount of variation there. There is good practice and bad practice, and—as we debated at great length in the Bill Committee—we think there is a strong case for a national scheme of delegation to improve certainty and the speed of planning decisions. He is more than welcome to respond to the consultation that is live at present.
There has been a 66% reduction in new affordable housing starts in London under Mayor Khan, and I note that Hillingdon Labour vigorously opposes the Conservative council’s plans for a new affordable housing site at Otterfield Road in Yiewsley. Will the Secretary of State condemn the failings of these Labour politicians on housing, and will she acknowledge that whether someone is a homeless person, a rough sleeper or an aspirational first-time buyer, this Government are failing those in housing need?
I find that absolutely astonishing when the Conservatives failed to meet their housing targets year after year. The Mayor of London has welcomed the money through the affordable homes programme. There is the amount of money we have given, and we are permitted to increase rents by CPI plus 1%. We are consulting on rent conversion, when the Conservatives prevented social landlords from being able to raise the money to provide the social housing that we desperately need. We are making the changes to get social housing where they failed miserably.
(1 month, 3 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to speak for the official Opposition in this debate, and congratulate the hon. Member for Kensington and Bayswater (Joe Powell) for having secured it.
Although there will always be a degree of party political difference—I am sure the hon. Member for Sutton and Cheam (Luke Taylor) achieved some cross-party consensus when he said “heaven forbid” the idea of a Liberal Democrat Government—what came across clearly in every Member’s contribution, including from the hon. Member for Strangford (Jim Shannon), was the sense of valuing the success of our capital city, and understanding the contribution it makes not just to the people who live here and choose to make it their home, but to our country as a whole. That is my starting point.
In preparing for this debate we will all have been sent a lot of information from many organisations that represent different aspects of life in our capital, but is clear that the contribution of London’s economy to the rest of the country is vital. It is vital because it is the biggest income earner for our country, because it makes a huge net contribution to tax receipts, which support public services across the whole country, and because it is the one genuine world city that places the United Kingdom in an internationally competitive economic league. That is why it has such an incredibly diverse population. In my constituency alone, which is not by any means one of the most diverse in London, well over 100 first languages are spoken by local residents, yet they all have in common the essential fact of being Londoners.
As we consider the decisions that the Government will have to make, and the policies they are considering, I would like to highlight a number of points that arise partly from the views brought forward local authorities and business organisations, but also from the day-to-day concerns we hear from Londoners.
A number of Members highlighted the challenges around housing, which is an important place to start. We recognise the nature of our city: housing remains in huge demand and, as several Members highlighted, is significantly more expensive than it is in the rest of the UK. In Greater London, 300,000 new homes already have planning permission. However, we have to acknowledge that there has been a 66% reduction in new home starts in the last two years, and in the last 12 months a 92% reduction in new home starts through our housing associations, which are the main provider of social housing. There has also been a 27% rise in the last 12 months in the number of people sleeping rough on the streets of our capital city. There is, then, a rapidly accelerating challenge around housing and, overall, a collapse in London’s delivery of house building in recent years, compared with the ambitions that the Government have set out and many London boroughs have enshrined in their housing targets.
We need to ensure that the aspiration the Government set out in their Planning and Infrastructure Bill is reflected in the actions that take place in the market. The very significant loading of that additional housing funding towards the tail end not of this Parliament, but of the Parliament after means that many of those London boroughs are asking when they can expect to see the additional resources that will help them to deliver that aspiration. Decisions that have been made, for example, to further ringfence the ability of local authorities to spend homelessness funding that they already have further constrains their ability in particular to address issues around rough sleeping.
We also need to recognise that, although many have made reference to the challenges of the local government funding formula, the NHS funding formula also creates very significant variations in the levels of funding, particularly within the capital. Just as, on the whole, inner London boroughs under governing parties of all colours have enjoyed significantly better per capita levels of funding than those in outer London—reflected in widely differing levels of council tax—we know that certain parts of our London NHS are significantly better funded.
The Minister will have been in the Chamber and heard many of his colleagues talk about their hope that the new 10-year plan for the NHS will see the further development of walk-in services and urgent care centres to keep people out of A&E. The NHS, because of its funding pressures, is looking to close those services at Mount Vernon Hospital in my constituency, creating further pressure on an already hugely pressured A&E in the constituency of the hon. Member for Uxbridge and South Ruislip (Danny Beales), who will be aware of this already, as the hospital is under the same NHS trust.
We need to make sure that not only local government, but the national health service are thinking about how they can deploy their resources in the interest of Londoners across the capital. We also need to reflect on the diversity of London’s economy. As a number of Members have mentioned, when we talk about London we tend to think of glass towers in the City inhabited by billionaire international bankers. However, 44% of the London borough of Havering is farmland, as is 23% of the London borough of Hillingdon and 35% of the London borough of Bromley. As well as attracting international capital and the cutting-edge technology industries, London also remains significant through the contribution that agriculture makes to the life of people in our capital.
Those of us in outer London, where most of those farms are located, will have heard loudly and clearly from local farmers—whose land is often not just farmland, but often a crucial part of the green belt, which maintains and supports the environment of our city—how concerned they are about the impact of measures such as the family farm tax. The family farm tax has a disproportionately large impact on London, because that farmland is of significantly higher value than equivalent sites in other parts of the country, due to its location in Greater London.
I thank my constituency neighbour for giving way. Does he agree that, although the farmland and the farmers of London are deeply important, that is one crucial measure—alongside a number of others that the Opposition have not supported—that will raise billions of pounds to invest in our NHS? Hillingdon hospital now has £1.4 billion, after only getting £70 million from the last Government, to be actually built after 14 years. Is it not the case that every constituent in Hillingdon will benefit from that and every constituent in London will benefit from billions of pounds more in our NHS and in education?
I am glad to hear my neighbour express his strong, vocal support for the family farms tax. I am sure his constituents at Goulds Green farm, Maygoods farm and other such places will be listening attentively to the position he takes as they reflect on the impact that will have on their businesses and the contribution they make to the local authority.
Given the wealth it generates and the contribution that it makes, London needs to have those world-class services funded correctly. The hon. Member will know, as he was a by-election candidate before becoming a Member of Parliament, that Governments of all parties, broadly speaking, have made commitments. We need to make sure those are delivered and that some of the changes made, particularly on London’s fringes, do not have a detrimental impact. I suggest to the Minister that it is worth having a consultation going across Government on what the impact of some of those decisions around the London fringes will have on the provision of NHS services in the capital.
The fact that London is not immune to those worldwide trends means that issues around crime and personal safety remain very significant, and particularly salient in their impact on our tourist industry. All of us work in this city and will be very aware that, in the good weather as the summer holidays get going, our public transport is full of people from all over the world coming to stay in London hotels, spend money in London restaurants, go shopping, and take their children to see London museums. Making sure that we live in a capital city that is safe, and where the traditional reputation of the United Kingdom as a safe reputation is maintained, is incredibly important. I pay tribute to the work that one of my local councillors, Susan Hall, the Conservative leader at the GLA, has been doing to make sure that those issues remain active and at the forefront of mayoral thinking.
We know that Mayor Khan was the only police and crime commissioner in the whole country to give back to the previous Government the money that he was given for extra police officers in the capital, because he chose not to spend it on that. That has left a deficit in our police numbers across the city. We need to ensure that our police have not just the resources but the connections with other local public services that enable them to do an effective job of cracking down on crime. That is a process of long-term change. In the past, many retailers asked for and were granted additional powers, via the Security Industry Authority, to enable their in-house staff to, for example, carry out arrests of people who are shoplifting. The cost of insuring those staff has run well above what any of those businesses contemplated. We must recognise that we are therefore facing a new policing paradigm, around shoplifting in particular.
In conclusion, although this is not just about the Minister’s Department, we need to hear from him that the Government are sighted on the value that London adds to this country. There has sometimes been a sense, particularly in the debate about the local government funding formula, that any formula that does not extract significant resources from London and redeploy them elsewhere will not find favour with this Government. I appreciate that the Minister is under pressure from colleagues across the country who want the deployment of additional resources, but a 27% rise in rough sleeping in the capital and the collapse in the delivery of social housing under this mayor is putting acute pressure on London’s local authorities. The levels of deprivation in some parts of this city are especially acute, given that London’s median income is around £10,000 a year higher than that of the rest of the United Kingdom, which means the dynamic around housing costs is particularly powerful.
We need to ensure that this city can continue, from its thriving economy, to contribute 22%—although the figures are debated, and it depends which lobby group you ask, it is between a fifth and a quarter—of our country’s GDP, or around £12 billion net, after public expenditure, to the wider Exchequer of the United Kingdom. That is £64,000 a year GDP per capita against a UK average of £37,000 a year. That economic competitiveness is living proof of the effectiveness of trickle-down economics. We know that, from the international billionaire who decides to build a new business headquarters in the city, to the trades, the workers who deliver it and maintain it, everybody benefits from the success of London. This is, and must remain, a city where people from all over the world and all over our country want to come to live and work, to study, to make a home or to raise a family. As this debate has showed, we all recognise the stake that we have; for all of us, as Members of Parliament, London is not just a place where some of us choose to live, but the place where all of us spend our working lives.
(1 month, 3 weeks ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Sir Edward. As the Minister set out, each of these agreements was negotiated between the then Conservative leaders of each of these councils and the previous Conservative Government. Having engaged with those individuals, I know that they are positive about the fact that this statutory instrument has been introduced for agreement.
I have a couple of questions, some of which stemmed from the points made by my hon. Friends the Members for Broxbourne and for Spelthorne. It is worth reflecting on the fact that there have been elections in some of the areas since the initial agreements were negotiated. We know that is not the case for Surrey, but there have been changes in Warwickshire and Buckinghamshire, although Buckinghamshire continue to have a Conservative leader.
The Minister set out that consent from the authorities was granted in May 2025, which is also when those elections took place, and it would be helpful, particularly in respect of Warwickshire, where there has been a change of leadership, if he provided an assurance that the revised leadership of the council is still supportive of the devolution deal that we are due to agree.
Some other questions have emerged. My hon. Friend the Member for Broxbourne referred to how things would pan out in relation to the powers of mayoral strategic authorities. In the context of devolution, authorities are seeking an assurance that the exercise of those powers will remain subject to an appropriate level of local democratic oversight after reorganisation. I am conscious that ministerial directions could be used to instruct the local authority to conduct itself in a certain way, when that may not be what was envisaged when the original agreement was drawn up.
Finally, to the point about the consent of districts and boroughs, regulation 4 says that the consent of those districts and boroughs will be required for the exercise of any of these functions. The Minister can be very clear about that, and it would be helpful if he could set out in what circumstances the Minister may provide a direction to a district or borough to agree to, or to provide consent to, one of those functions. That potentially would circumvent the local democratic control that was envisaged. I am grateful to the Minister for honouring the commitments that have been made. For the most part, these provisions are politically non-controversial and are seen very much as beneficial regardless of who is in control of the local authorities, but I know that colleagues would appreciate it if he provided clarification on those points.
(2 months, 1 week ago)
Commons ChamberIt has been a wide-ranging debate. I add my congratulations to the Chair of the Select Committee, the hon. Member for Vauxhall and Camberwell Green (Florence Eshalomi), for securing it and introducing it so well. I pay tribute to my Conservative colleagues—my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) and my hon. Friends the Members for South West Hertfordshire (Mr Mohindra) and for Broxbourne (Lewis Cocking)—for sharing both their views, brought from their long experience in local government, and their great passion for their constituencies.
I will start with the striking speech by the hon. Member for Shrewsbury (Julia Buckley), who set out many of the challenges around local government finance in her constituency. I came away from that speech thinking, “Just wait until she finds out which party in government slashed the £8.8 million of rural delivery grant from her local authority, which has led it to say it is having to consult on reducing bin collections further—to just once every three weeks—and to literally turning the lights off in Shrewsbury to save the money necessary to balance the books following this local government finance settlement.”
When we come to the Chamber to debate the resource departmental expenditure limit and the capital departmental expenditure limit, it is really important, as hon. Members have done, that we set out the story behind that: what it means in our constituencies for our local authorities. When we started the debate, we knew that it was against a backdrop of a Budget last year that left councils net £1.5 billion worse off because of the rise in national insurance contributions. That alone took £1.5 billion out of local authorities’ capacity. Since then, we have seen a developing backdrop of rising inflation, which is now pushing 3.5%, and deteriorating economic conditions —in particular, rising Government borrowing—which may be one of the reasons why the Government are seeking to push back borrowing the capital that funds the housing programme in the hope that costs will come down in due course. But all these things are imposing rising costs on our local authorities.
I have enormous sympathy for the Minister, who I know has huge experience in local government. However, as Members from across the House have demonstrated in their contributions, the impact of the Department for Education’s decisions on SEND, the impact of the Home Office’s decisions on asylum funding—for Hillingdon, which serves about two-thirds of my constituency, that is, on its own, an additional £5 million per annum cost pressure—and the impact of Department of Health and Social Care decisions on public health, which have a significant impact on the costs local authorities face, are all accumulating.
That leaves the Minister and the Government with a series of difficult questions that they need to address. Having set out the existence of that substantial black hole in council budgets, and the black hole that a number of Members on all sides have referred to in housing delivery, the fact that the visible symptoms of council services, such as rough sleeping, are racing up—according to St Mungo’s charity, rough sleeping has risen by 27% in London alone—means we know that our local authorities face a significant challenge.
The questions that I hope the Minister will begin to address in his summing up are around the underlying financial assumptions behind the figures that are set out in the report. We know that there is always a tendency in Whitehall to see local government finance as an opportunity to centralise credit by announcing the positive things that we want to see money spent on and localising the blame by forcing councils to fund that through rising fees and charges or increases to council tax. When it comes to ensuring that the 1.5 million homes in our country that already have planning permission are delivered, there needs to be a relentless focus on getting that money out of the door and into the hands of local authorities and others to ensure that those homes can be delivered. The Opposition will scrutinise relentlessly, in search of the evidence that that is happening.
Our councils face this challenge against the backdrop of a potentially costly and disruptive reorganisation. We know that many councils have come forward with their own proposals for local government reorganisation. [Interruption.] The Minister says “All councils” from a sedentary position. All councils were asked, invited or, perhaps, required to put forward their proposals for reorganisation. However, we know that asking, for example, all the planning officers in the country to reapply for their jobs is unlikely to aid that focus on housing delivery.
Will the Minister clarify the following points in his response? First, will he set out the Department’s underlying assumptions on council tax rises, fees and charges, and discounts? It seems clear from the analysis being done by local authority finance officers that the underlying assumption is that all those things will rise in every council to the maximum possible extent, simply in order to stand still. What are the Government’s underlying assumptions about business rate rises, discounts and redistribution? I note, for example, that North West Leicestershire district council, because of the business rates reset, expects to lose 67% of its spending power in one go as a result of the Budget. What are the underlying assumptions about the housing revenue account, parking revenue account and other ringfenced council budgets, so our constituents know what is coming, not just in their council tax bill but in what they may pay for parking, permits, waste services and other essential day-to-day services?
Let us consider the individual cases coming in. I made reference to the impact on Shropshire of the loss of £8.8 million in rural services delivery grant, and South Holland, West Lindsey and Staffordshire Moorlands will see a 40% cut in their funding needs assessment as a result of the Budget. There are also authorities, such as Boston, that are seeing more than 40% of their budget driven to cover the costs of drainage boards. East Cambridgeshire district council sees a cut of £125,000 a year, and Fylde district council sees a rise of nil despite a headline announcement by the Government of 6.8%, once those calculations are taken into account. I know the hon. Member for Harlow (Chris Vince) was here earlier on, and Harlow reports that as a consequence, the core funding—the revenue support grant—is cut by 25% this year alone. All that has a huge impact on local Government funding and what our constituents will see.
I know that there are many in this Chamber with experience in local government. Our councils remain the most efficient part of our public sector, but it is clear from the many constituency-level issues and the insights we have gained in this debate that they deserve better from this Government in a much more transparent and open funding settlement, so that we know the underlying assumptions of Government and our constituents can understand what will happen to their council tax bills and their household budgets.
(2 months, 3 weeks ago)
Commons ChamberOur high streets and small businesses have been hammered by this Government, with big increases in the cost of business rates and national insurance contributions. Can the Minister tell the House what measures he and the team have put forward to the Chancellor of the Exchequer to help our small businesses and high streets in the spending review?
The hon. Gentleman offers me two opportunities there. First, we talk about challenges on the high street, but I remind the House of the more than a decade of starved demand because the economic policies of the Conservatives and all the impacts that had, followed by—[Interruption.] The stag do on the Opposition Front Bench are making their rattle as usual, but they were all present during that disastrous fiscal event that led to the increased costs that we are still coping with now. The second temptation the hon. Gentleman gives me is the opportunity to resign by leaking details of the spending review here first. Sadly, I will give no succour there.
The Minister knows from his time at the Local Government Association of the impact that asylum has on the budgets of local authorities. With the Home Office’s much-vaunted increase in the grant rate for asylum claims, the Government are pushing thousands of households on to council waiting lists and shunting millions in costs on to council tax payers. What additional funding and measures does he aim to secure to help to mitigate those costs, which are affecting so many of our local authorities?
Quite frankly, it is a bit rich for any shadow Minister to critique the current system when the Conservatives deliberately designed it in their 14 years in government. The question is how we go about repairing it. One thing must absolutely be put right; the disjointed system in which different Government Departments work in silos cannot carry on. One of the successes of the leaders’ council is that for, the first time ever, local government leaders are around the table with the Government, including in a meeting with the Home Office and our Department, to work through exactly those issues. That is the change: for the first time, those in local government are being treated as adults.