Provisional Local Government Finance Settlement
Debate between Florence Eshalomi and Jim McMahon(5 days, 17 hours ago)
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Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I thank the Minister for outlining this much-needed funding uplift. I agree with him that councils up and down the country, regardless of their political persuasion, need the Government to support them, not to criticise and denigrate them, which is sadly what we have had in some cases over the past 14 years. He mentioned some of the authorities that still face those pressures, including Birmingham, Nottingham and Woking, which have already effectively faced bankruptcy. The Local Government Association has outlined that up to one in four councils is likely to require additional emergency support.
A Sky report has today outlined that families are stuck in temporary accommodation for an average of five and a half years. We should not be calling that “temporary accommodation.” Imagine spending the entirety of your school life in temporary accommodation because you do not have your own home. The funding that the Minister has announced for tackling homelessness is welcome, but it is a sticking plaster, if we are honest, because it does not give councils the tools to build social housing. Homelessness will end only if we build new homes, so what steps is the Minister taking to ensure that councils have those powers?
In the short term, the £18 billion boost to the homelessness prevention grant is a step in the right direction, but the Government must consider the unintended consequences. Local authorities are already reliant on that funding to plug gaps in temporary accommodation—many use up to 75% of it for that purpose—but the new rules mean that only 49% of the grant may be used in that way. How will that change not lead to a further reduction in funding for temporary accommodation, at a time when, as we all know, the system is broken?
Jim McMahon
I thank the Chair of the Select Committee for her question. We are all getting ready for Christmas and looking forward to time with our families and our own respite, but in the end it is hard to enjoy that moment given the prospect of just how many children in this country are in temporary accommodation. Some 159,000 children do not have a secure, affordable place to live and so are in temporary accommodation. In my own town, there are 500 such children. We do our best—we martial for the Christmas parties that charities put on—but it is no replacement for a secure family home.
There will be lots of differences in the exchanges that take place here, but we need to focus on why we are doing what we are doing. The reason we are building 1.5 million new homes is of course economic, and about decent, well-paid, working-class jobs—we talk a lot about that—but in the end it is about sorting out the housing crisis. If we sort out that crisis, we sort out the temporary accommodation crisis and the financial crisis in local government. If we sort out the crisis in adult social care, of course we sort out the financial crisis, but we will finally deliver on the promise of the state looking after the generation who gave so much. If we sort out the crisis in children’s social care, we finally deliver on the state promise to invest in the next generation.
Repairing the foundations is, of course, about financial foundations—that is important—but it is also about people and communities, and in the end that is what we are all here for.
English Devolution
Debate between Florence Eshalomi and Jim McMahon(1 week ago)
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Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I thank the Minister for the statement. It is about how we bring local leaders back to the agenda and back to the central aims that they have been complaining about over the last 14 years. It is important that any devolution reforms build trust among local people, who rely on vital services from housing and planning to social care; the Minister must keep that in mind as he is going through the reforms.
Ultimately, some councils may fear that residents’ voices in smaller district areas will be lost if they are absorbed into larger unitary authorities. Will the Minister outline how he will ensure that residents do not feel disenfranchised by losing representation in their community? Will he assure the House that, should residents choose not to adopt a mayoral model, they will not be disadvantaged?
We know that our frontline services are at breaking point, as the Minister outlined, and many will welcome the multi-year settlement, but we do not want to see adult social care and temporary accommodation—all those areas—becoming stuck between a disbanding district authority and a nebulous unitary authority. Will the Minister assure the House that there will be proper accountability during the reorganisation and that we will not see local residents and councillors left in limbo?
Jim McMahon
I thank the Chair of the Select Committee for that very important point about how we maintain public trust and confidence in a period of change. First, local government representations to Government will be self-organised within counties, and we will receive the recommendations and requests that come forward. We will write to all 21 areas in scope to invite them to make representations to be part of the first wave priority programme. From the conversations that we have had, we expect a significant number of local authorities to want to be part of that reorganisation. But to be clear, that is not something that we are imposing. We are writing out and local areas are self-organising, because they understand that reform and modernisation are central.
When it comes to not losing a local voice, the White Paper makes it very clear that the devolution offer is not just about creating new structures, and it is certainly not about creating new politicians. This has to be a genuine shift of power. There is a big section on community power, because a lot of people—and this may even transcend the previous Government—do not feel power in the places where they live. Quite often they feel that things are done to them and, when they see the decline of high streets and town centres, they feel that the change is going one way, and it is not good. The paper is about rebuilding local community power. Our expectation in the White Paper is clear that, regardless of the size of local authority, every council—including existing unitaries—will work out a way of getting to those local communities at neighbourhood level, and reflect in a democratic way and a public service way how best to give local people a voice.
Oral Answers to Questions
Debate between Florence Eshalomi and Jim McMahon(1 month, 3 weeks ago)
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Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
The Secretary of State will know the financial difficulties facing so many of our local authorities. A recent Local Government Association report shows that one in four local authorities will apply for additional funding. It is fair to say that, for a number of them, March will be too late. What discussions have been had with the Chancellor to ensure that our local authorities get emergency support?
Jim McMahon
May I welcome the Chair of the Select Committee to her place? She will do an outstanding job for local government and housing.
The Government absolutely understand how difficult it is for local authorities to make ends meet. We understand that the pressures in adult social care, children’s social services and temporary accommodation are biting hard, and we are working through those issues with the sector.