Local Government Funding: North-East Debate

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Emma Lewell-Buck

Main Page: Emma Lewell-Buck (Labour - South Shields)

Local Government Funding: North-East

Emma Lewell-Buck Excerpts
Tuesday 1st March 2016

(8 years, 2 months ago)

Westminster Hall
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Emma Lewell-Buck Portrait Mrs Emma Lewell-Buck (South Shields) (Lab)
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It is a pleasure to serve under your chairmanship, Sir David. I also congratulate my hon. Friend the Member for Darlington (Jenny Chapman) on securing this important debate. Is it not about time that this Government admitted that plans for the so-called northern powerhouse are just empty rhetoric? A recent report from the Joseph Rowntree Foundation shows that 10 of the UK’s most struggling cities are in the north. The Government are driving a greater wedge, not building the promised bridge, between the north and south. Not a single town from the south of England is among those struggling areas.

Council spending power per household has fallen by £74 in the South Tyneside Council area, which is significantly higher than the £43 average fall in spending power across English councils as whole. My council was also one of the eight authorities in the north-east to receive no transitional funding whatsoever, yet the Government have managed to find the money to offer a bribe to MPs representing wealthy southern shires. South Tyneside has suffered a 45% budget cut since 2010.

Many people will know that I was a councillor between 2010 and 2013 before coming to this place. I was a cabinet member on the council and cannot begin to stress how painful it was to sit surrounded by paperwork and job titles and agonise over who may be losing their job or what service might be axed next. I wonder whether the Minister has ever had to stand face-to-face with vulnerable and elderly people and their families and witness the total despair on their faces when they are told that their care package was being cut or that their care home was closing, because I have and I remember it well.

The chief executive of the Chartered Institute of Public Finance and Accountancy says that the next few years are going to be “so difficult” and “so tough” that councils will be in total deficit. Is the Government’s final aim to make councils bankrupt? That is the direction in which they are heading. It is the wrong direction. The 2015 index of multiple deprivation shows that South Tyneside’s overall deprivation score rose by just over 10% since 2010, the largest percentage increase of any single area. My constituents in South Shields are proud, competent, hard-working and skilled, but they have been let down by this Government, who just do not understand or care about the issues that the north faces.

The Tories are not devolving real power to our communities with the northern powerhouse initiative; they are delegating cuts. The Chancellor once said that a true powerhouse requires true power, but we know and he knows that if we take away the money, we take away that power.