Local Government Funding

Ged Killen Excerpts

Wednesday 27th March 2019 Westminster Hall

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Colne Valley (Thelma Walker) on securing this debate at a critical time for our public finances.

I speak as a Member of Parliament for the great city of Glasgow, which has a fine tradition of what might be called municipal socialism. It would be great to rediscover that municipal route to socialism, but it has been under assault for many years now, with a decade-long programme of austerity cuts, if not more, the brunt of which has been borne by local government. We often hear from Scottish National party Members in this place about how wonderful everything is in Scotland, and how munificent the Scottish Government are in stewarding local government by dispensing the fruits of excellent governance in Edinburgh to the rest of Scotland. That could not be further from the truth.

Look at the dire straits in which Glasgow City Council finds itself. Last year, Glasgow had to find £49.9 million-worth of cuts, almost £20 million of them a direct consequence of the Scottish Government’s cuts to local government. The remainder are due to pay and other inflationary pressures. The real brunt of cuts made by central Government in Westminster and at Holyrood is borne by councils, and, as a result, Scotland has lost 30,000 council jobs in recent years. That is a shameful indictment of those who are responsible. The mass unemployment that we railed against during Thatcherite deindustrialisation in the 1980s has been writ large in local government by a Scottish nationalist Administration in Edinburgh.

Between 2010 and 2018, Glasgow lost £233 per head of population in Scottish Government funding. That is a real-terms cut; it is the cost of the Scottish National party to every single Glaswegian. In May 2017, a minority SNP administration took over Glasgow City Council. However, instead of robust opposition to the onslaught of cuts, we have seen not only meek acceptance by the council, but even an attempt to divert attention and to deny the reality of the fiscal constraints on Glasgow—Scotland’s largest city, and a city with some of the greatest social problems in the country.

In my constituency, the failure in the quality of local services—a reduction in cleansing services, poor repair of roads, failure to help homeless people to move into temporary accommodation, and a decline in care and social work services—has had a creeping effect on some of the weakest people in our society, who disproportionately rely on such services. That has happened at a time when the SNP has celebrated imposing a council tax freeze on local government.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

On the council tax freeze, does my hon. Friend agree that if local councils are to be accountable to the people who elect them, it is essential to protect the autonomy of local government to raise its own funds, rather than giving councillors the choice between making worse cuts and even worse cuts?

[Mr Sweeney]

I thank my hon. Friend for making that pertinent point, which goes to the heart of the issue of local government—structural decay over decades. Once, we had great, autonomous and highly vigorous municipal authorities. Look at Glasgow, which used to run its own gas and electricity provision, tramways, railway system and subway system. The Glasgow Corporation was a huge enterprise, and it has been slowly but surely torn apart over the past 50 years by creeping centralisation. That has happened at a regional level, and it is now happening with the dismantling of Scottish regional councils and regional authorities and their centralisation into Holyrood.

An inadvertent and regrettable effect of devolution over the past 20 years has, in essence, been to displace the municipal power of Glasgow and the west of Scotland, and to suck it into the east and into Edinburgh. We should guard against that in the constitutional reform of city regions across the United Kingdom. We need to consider what effect such devolution might have on the margins and the periphery of that power base. I would like that to be corrected in Scotland as we look forward to the next two decades of devolution.