Local Government Finance

Gareth Thomas Excerpts

Wednesday 11th February 2026 Commons Chamber

[David Simmonds]

I hesitate to disagree with my right hon. Friend, but it was not ever thus. The rural services grant referred to by my hon. Friend the Member for Bridgwater (Sir Ashley Fox) was a measure to address those additional cost burdens, including direct costs arising from statutory duties. It was a funding stream that is being removed by this Labour Government.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

rose—

[Natasha Irons (Croydon East) (Lab)]

rose—

[David Simmonds]

I will give way to my constituency neighbour.

[Gareth Thomas]

The shadow Minister will remember that when the Conservative party took control of Harrow council four years ago, it did so on a promise of freezing council tax, which he presumably campaigned on. Instead, council tax has risen by 20% over the past four years. Will the shadow Minister take the opportunity to apologise to the people of Pinner—indeed, of Harrow more generally—for his party saying one thing when it was campaigning and then doing exactly the reverse, increasing the cost of living for his constituents and mine?

[David Simmonds]

Without wishing to be parochial, I am sure the hon. Member would also like to join in the apologies for the appalling level of corruption that had taken place under Labour in the London borough of Harrow. As has been covered extensively in the local and national media, it left an astonishing legacy of cost overruns in the local authority’s highways department, which has taken a good deal to recover from. I am sure we would not want the House to be inadvertently misled about the impact of those cost overruns.

--- Later in debate ---

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Harrow council was on the verge of bankruptcy until Ministers announced substantial extra funding in the local government settlement. Council officers told councillors that they were facing a budget deficit of more than £32 million, and they were planning to use virtually all the council’s reserves to fill the gap if the settlement for Harrow was not as generous as in fact it was. They were even contemplating having to ask for exceptional financial support status, so I particularly welcome the 31% increase in funding for Harrow over this Parliament that the Government announced in December. The last multi-year funding settlement for the council, under Theresa May and Boris Johnson, delivered just a 5% increase, so a 31% uplift over this Parliament is a significant step forward.

Harrow certainly needs that uplift, because over the last four years residents have become increasingly concerned about how the council has been managed. Council tax has increased by more than inflation every year. Rents and service charges imposed by the council have rocketed. Crucial parts of the council’s responsibilities have been rated as inadequate and needing improvement. Basic critical services such as street cleaning have been cut to the bone, and new housing to ease the housing and homelessness crisis has been stalled, delayed or just axed. Council officers have told senior councillors that without that increase, Harrow would have faced having to approach the Secretary of State; it would have been at risk of bankruptcy, and of needing exceptional financial support.

Although a combination of recent mismanagement of council finances and a decade of austerity has done considerable damage to our public services, Harrow remains one of the lowest-funded councils, both in London and nationally, so I say gently to the Secretary of State that I hope he will understand when I tell him that I will continue to press for further funds to improve our local services. It is worth underlining that between 2013-14 and 2022-23, the council saw cuts in its funding from the Tory, and Tory-Liberal Democrat, Governments of more than £50 million, and a reduction of a shocking 97% in the revenue support grants. One of the consequences of that level of austerity was vastly weakened public services.

[Sir Desmond Swayne]

May I tell the hon. Gentleman about austerity?

[Gareth Thomas]

I am happy to give the right hon. Gentleman a way into the debate, but he might prefer to sit down and make a longer contribution later.

[Sir Desmond Swayne]

No, no. The one thing that the Secretary of State got right when he was wagging his finger to my left was his implication about the Liberal Democrats. I was at the heart of that Administration. Danny Alexander was Chief Secretary to the Treasury and had to be restrained by George Osborne, so gung-ho was he about making greater cuts. Personally, I would have given him his head, but don’t let them escape!

[Gareth Thomas]

I am happy to join the right hon. Gentleman in again condemning the role that the Liberal Democrats played, but if he was the sane voice in the Government at the time, I hope he will forgive me for being—slightly—even more concerned about what was going on.

One of the understated problems resulting from the austerity that Harrow has suffered has been the decline in the quality of vital local services. Children’s services were rated inadequate by Ofsted just last year, and immediate improvement was required in eight areas. They included leadership stability, particularly relating to management and oversight of staff and social workers; the

“quality of support, advice and guidance for care leavers”;

the “quality of help” for children who were homeless; the

“quality and consistency in the response”

when care leavers went missing; and the consistency of staffing to support children. Some of the most vulnerable children in my community and across Harrow more generally have been let down by Harrow council. Two years earlier, the Conservative councillors who led Harrow council had driven through major cuts to children’s services of over £2.5 million. Astonishingly, the current Conservative leadership locally is proposing another round of major cuts to children’s services.

One particular case in my constituency stands out. At a nursery, parents reported significant bruising on their child, in what looked like the shape of a child’s footprint. The matter was referred to social services. The parents were arrested and went to court, and the child was taken into emergency foster care. Eventually, the case against the parents was rightly dropped when the court accepted that the original bruising was caused by a child’s foot. In the meantime, during supervised contact that was arranged by Harrow social services, the parents found extensive injuries on the child and reported them to the social worker. Given the scale of the injuries, there should have been a serious investigation at the time, but there was not. In the nearly three years since, the council has struggled to get answers to its questions, and the parents inevitably remain profoundly affected by what has happened to their child, and by what they have been put through as a family. I wish I could say that was an isolated case, but it is not. Although I welcome the additional funding that the council will get, which it will be able to put into social care for young people, there are other measures that I hope the Secretary of State will consider further down the line.

It is not just children’s services that have been affected; the Care Quality Commission has said that adult social care run by Harrow council requires improvement. That certainly did not come as a huge surprise to many carers, elderly people and other vulnerable adults in Harrow. Just last year, the council was ordered to pay compensation to an elderly resident with dementia and her family. The resident needed medical help after she was neglected and let down by the care home in which she had been placed by Harrow council.

Since 2022, Harrow has become the third most expensive council in London for council tax, behind Tory-run Croydon and Liberal Democrat-led Kingston upon Thames. Harrow’s Conservative councillors have put up council tax by the maximum possible every year they have been in power, and they plan to continue doing so—a 20% rise in council tax since 2022, despite their promises to freeze it.

Council tenants have been hit with the maximum rent increases allowable in each of the past four years, while leaseholders’ service charges have rocketed. Astonishingly, some leaseholders in properties owned by Harrow council are expecting to see their service charges rise by 70% this year. One family, currently paying £2,000 annually, have been sent a bill for £3,400 for next year. Those rates are simply unacceptable in the midst of a cost of living crisis, and I hope the council will review them urgently.

[Lincoln Jopp]

Does the hon. Member believe that people who promise not to raise council tax should not raise council tax?

[Gareth Thomas]

Conservative councillors in Harrow promised not to raise council tax but duly did so. I hope the hon. Gentleman will join me in urging the shadow Secretary of State to ask the leader of the council to explain to the people of Harrow why he reneged on his promise.

Regeneration should be an opportunity to build more affordable and social housing, and to help tackle the housing crisis that we face in communities like mine. It should surely involve local communities, create opportunities for them to come together, and provide for key local services. Instead, the completion of the redevelopment of the Grange Farm estate has been delayed multiple times—again, a product of the lack of funding and poor leadership locally.

[Matt Rodda]

My hon. Friend is making an excellent point, and I am very sorry to hear about the challenges that his residents have with their council. Some local authorities are doing the exact opposite of what he describes. In my area, Reading borough council recently opened 46 new council houses, built on its own land, as part of a programme to build nearly 800. There are local authorities that are able to grip this issue, and I am very sad to hear about the situation at his council. Perhaps it could learn something from Reading and other councils around the country.

[Gareth Thomas]

I would certainly welcome the news that the Conservative councillors in Harrow responsible for housing were looking at councils that are committed to building more council homes, like those in my hon. Friend’s constituency.

The failure to complete the redevelopment means that residents have had to put up with mice, damp and substandard accommodation for too long on the Grange Farm estate. On other regeneration schemes in Wealdstone, plans for affordable housing have been axed, no new council housing that had not already been planned by the previous council has been built, and a primary school that was due to be provided has been axed. Developers are not being held properly to account, and a major opportunity to lift the quality of life in the borough has been missed.

A consistent complaint that I have heard from constituents of mine is that they find it very difficult to get to see anyone at the council. They do not know where to go to meet council staff to sort out problems and discuss issues in their neighbourhood. Shortly after the local Conservative party took over running Harrow council, it closed Harrow’s civic centre. It was due to be replaced by a smaller set of council offices in Wealdstone, on what is currently the Peel Road car park. That would have given Harrow residents access to council staff, and helped increase the number of people using businesses on the local high street. It would have freed up council-owned land for much-needed affordable housing and for new workspaces, retail and commercial spaces, as well as a new primary school, a new library, a new park for residents to enjoy and a new town square. However, the civic centre remains closed—derelict and boarded up—and major decisions on regeneration have been delayed or cancelled. No new set of accessible council offices is planned, and no one knows when, or indeed if, new promised housing will go ahead. Instead, local Conservative councillors have spent thousands of pounds doing up their council offices, yet members of the public are not allowed in.

[Lincoln Jopp]

Will the hon. Gentleman give way?

--- Later in debate ---

[Gareth Thomas]

If the hon. Gentleman will forgive me, I have given way to him once, and I leave him to hope to catch your eye later, Madam Deputy Speaker.

The public will get their say on the situation in Harrow in May, but the failures at Harrow council raise other questions. Reversing the decade and more of austerity for local services is clearly a priority, and the settlement that was announced in December makes a good start on that objective. Harrow certainly needs a serious examination of its funding formula, but surely raising the quality of local services needs to be more than just the responsibility of local people. In 2015, the Opposition parties decided to abolish the Audit Commission, a body that usefully challenged councils much earlier on, and helped prevent many poor management practices of the sort we regularly see in Harrow from developing and getting out of control.

[Danny Beales]

My hon. Friend makes an excellent point. Rightly, this Government are putting more money back into local government for the first time in many years. That is long overdue, but that money has to be well spent. Unfortunately, what he describes in Harrow is quite similar to the experience of my residents in Hillingdon. The independent auditors are quite damning about the council’s budgeting approach. Millions of pounds have been misallocated, and there were no opening and closing balances, well into the financial year. It was recently reported by the press that the council, in a secret deal, had written off a former Tory councillor’s debt, all while applying for exceptional financial support from this Government, so I completely agree with him. Do we not need more independent oversight and audit of local government finance?

[Gareth Thomas]

We certainly need more independent oversight of the way in which Conservative councils in outer London are managing their finances. I am completely with my hon. Friend on that score, and the story of what has happened in Hillingdon is almost as bad as the situation we have faced in Harrow over the last four years. The one bright spot has been the increase in finance that the Secretary of State has delivered for Harrow. We need a review of the funding formula for Harrow, but I welcome the settlement we have had, and I look forward to continuing to persuade him of the case for more funding in Harrow.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.