Local Government Finance (Tameside and Oldham)

Debbie Abrahams Excerpts

Tuesday 23rd June 2015 Westminster Hall

[Angela Rayner]

My hon. Friend is absolutely right that the impact will be felt across all the public services, which are struggling with their own cuts.

Local government is facing the biggest challenge in its history. Spending as a proportion of GDP is forecast to fall from 4% in 2010 to less than 2.5% in 2019, according to the Office for Budget Responsibility.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I congratulate my hon. Friend on securing this important debate. One of the consequences of the cuts she is experiencing, apart from the fact that they are disproportionately affecting areas such as Greater Manchester while more affluent areas are receiving increases, is the long-term effect on life expectancy, about which there is a solid evidence base.

[Angela Rayner]

My hon. Friend is absolutely right. After five years of austerity, it is becoming increasingly difficult for well-run councils such as Tameside and Oldham to protect the most vulnerable from the impact of Government policies.

Demand for core services, particularly in social care—formerly, I worked in home care—continues to rise steeply, while funds are being drastically cut. Who will pay the price for the mismatch between the demand for services and the resources available to fund them? Will it be the 5,000 adult care service users in Tameside who have a physical difficultly, a frailty or a sensory impairment? Will it be the 4,000 people who use reablement services to help them live at home, or the people the council supports by providing nursing or residential care? Will it be the 1,300 mental health adult social care users, the 556 adults receiving learning disability services or the 410 vulnerable looked-after children in Tameside? What about the 1 million telephone callers to the council every year? Should staff just ignore the ringing phone, stop cleaning the 715 km of highways and footpaths every month, stop emptying the 45,000 wheelie bins and forget the 140 tonnes of street sweeping and the 290 tonnes of litter per month?

The Local Government Association believes that by 2020 the money available to fund some basic but essential council services, which we all rely on, will have shrunk by 90% in real cash terms. More than 60% of council spending will be on adult and child social care. Local authorities up and down the country are facing difficult choices.

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[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

It is a pleasure to serve under your chairmanship, Ms Dorries. This is the first opportunity that I have had to welcome the hon. Member for Ashton-under-Lyne (Angela Rayner) to the House. I congratulate her on securing the debate and commend her on her speech about the situation in Tameside and Oldham. She and her colleagues are not necessarily enthusiastic about what is happening in her area as a result of the northern powerhouse talks, but I certainly take her comments today seriously.

The way local government is funded is extremely important and creates a great deal of debate. Thanks to the Government’s long-term economic plan, the deficit is falling, the economy is growing and employment is at a record high. The Government are putting public finances back on track. The past five years have seen huge changes in the way in which councils operate. Local government accounts for almost a quarter of total public expenditure. It was therefore inevitable that local government would have to play its part in reducing the deficit, but it has done so efficiently and effectively, delivering sensible savings while protecting front-line services. In fact, public satisfaction with local government services has increased or been maintained across the country over the past five years. That illustrates how successful councils have been. However, the job is not yet done, and the next five years will present further challenges. The Government still need to take difficult decisions about local government funding, to ensure that the public finances are on a sustainable path, and councils will need to continue to play their part.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the Minister give way?

[Mr Jones]

I will in a moment, but I will make further progress first.

For Britain to be truly successful, every part of the country must thrive. With the 2015-16 settlement, the Government attempted to be fair to all of our great cities, counties, rural shires and coastal communities. The overall reduction in local authorities’ spending power in 2015-16 is 1.7%. When taking account of the funding provided to support local transformation, the overall reduction is lower still—1.5%. To answer one of questions from the hon. Member for Ashton-under-Lyne, those authorities with the greatest demand for services continue to receive substantially more in funding. Only London and the north-east have higher spending power per household than the north-west.