Defending Public Services

Gerald Jones Excerpts

Monday 23rd May 2016 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to be called to contribute to this debate on the Gracious Speech. It is also a pleasure to follow my hon. Friend the Member for Manchester, Withington (Jeff Smith), who talked about how our public services are under pressure, and that is a subject to which I should like to return in my contribution.

This Government’s record on protecting public services is woefully inadequate. Unfortunately, I have read little in the Queen’s Speech to suggest that their performance will improve any time soon. Whether we are talking about policing, the NHS, fire services or local government, the story is the same—cuts and more cuts. As my hon. Friend the Member for Huddersfield (Mr Sheerman) stated earlier, the Government seem to suggest that the public sector is bad, and indeed there does appear to be a constant push to privatise public services. We have yet another example of that with the desire to privatise the Land Registry.

We know that the Government have used the global financial downturn as a reason for implementing the most severe financial austerity that our country has ever seen. On the one hand, they have found the money to reduce inheritance tax, capital gains tax and the rate of tax for the highest earners from 50p to 45p, and on the other, they have made huge cuts to the income of working families and to welfare for disabled people, and created significant hardship across the public sector.

I have spoken on a number of occasions in this Chamber about the cuts to policing and the impact that those cuts have had on police services, most notably on neighbourhood police services. Today, I wish to concentrate on council services. As someone who spent 20 years as a county councillor before coming to this place, I have seen at first hand the many excellent examples of locally delivered, democratically accountable public services. I have also seen first-class examples of collaboration between local authorities and other public sector agencies, and in some cases with the third sector and the business sector, too. All too often in these examples, the lead is taken by local authorities because of the strategic responsibilities and overview that they have. In my view, that role is unique and should be protected.

Unfortunately, in my last few years as a councillor, I witnessed the consequences of Tory cuts. It reminded me of when I was first elected as a councillor in 1995 when, for the first two years under the last days of the Major Government, times were tough. I remember millions of pounds being cut from council budgets. Following the election of a Labour Government in 1997, a commitment to local public services was restored and funded properly. Unfortunately, that funding reverted to form in 2010. Since then, the budget for the Welsh Government has been cut by around 10%, and that has impacted hugely on local public services in Wales. I pay tribute to all local authority staff across the sector who, despite the odds and having to do much more for less, still try to deliver key public services as best they can.

Despite a significantly reduced budget, the Labour Welsh Government have led the way in tackling poverty and deprivation. The Jobs Growth Wales programme has been hugely successful, supporting 15,000 young people with job opportunities. That scheme is continuing with £25 million of European funding and will support the creation of 8,955 new job opportunities for 16 to 24-year-olds. The success of Jobs Growth Wales is yet another example of why the UK needs to remain in the EU.

As right hon. and hon. Members will know, local government in Wales is devolved to the Welsh Government. That was hugely beneficial to Welsh councils because in the first years of Tory austerity the Welsh Government under Carwyn Jones protected councils from the severity of the cuts for as long as they could. I remember talking at the time to local government colleagues in England, who were hit hard by austerity, and comparing our situation with the huge difficulties that they were having in delivering services.

Many people in the communities I represent rely heavily on the services provided by Merthyr Tydfil County Borough Council and, on the Rhymney valley side, by Caerphilly County Borough Council. Both authorities have worked hard in recent years to protect front-line services as best they could in the face of unprecedented financial cuts. Both councils pay the living wage to their employees—and I mean the proper living wage as suggested by the Living Wage Foundation, which specifies an hourly rate of £8.25, to take people above the poverty line. It is not the pretend national living wage that this Government introduced, which is clearly not a living wage.

Two key services delivered by local authorities that are also statutory services are education and social services, and they utilise the lion’s share of the budget, despite significant pressures. Many of the other services provided by councils are discretionary services, but are hugely valued by the public none the less. They include highways, leisure and community centres, youth services, libraries, arts and tourism, to name but a few.

I think that councillors across our country have done an excellent job in a very difficult situation. This Government are making significant cuts to public services, and that is placing local councillors in an impossible situation. We know that large organisations such as councils should always look for ways to be as efficient as they can be, and efficiency savings are a good way of reinvesting in front-line services, but what this Government have done is more to do with an ideological dislike of public services than with encouragement and support for vital local services.

To balance their reduced budgets, councillors are having to cut services to local communities. When we see our libraries having to cut their hours, our youth clubs being reduced and our potholes taking longer to repair, we must recognise that that is a direct result of this Government’s actions and their complete disregard for local public services. Cuts have consequences, and this Government must recognise that.

Another example of the Government’s attitude to public services is their treatment of the BBC. The BBC is respected around the world for its high-quality programmes and is one of the UK’s greatest cultural organisations. It is an excellent example of a great British public service. Any attempt to scale back the BBC would have a devastating impact on the UK’s creative industries—the fastest growing sector of the UK economy. I have received many emails from constituents across Merthyr Tydfil and Rhymney expressing their support for the BBC. We know that the Government have been forced to backtrack on many of their more extreme proposals, but as my right hon. Friend the shadow Secretary for Culture, Media and Sport said recently:

“There are still real concerns that the Government will seek to influence the BBC’s editorial decision making”.

That must be avoided. The independence of the BBC remains of paramount importance. We must continue to celebrate the BBC as one of the UK’s great economic success stories.

Finally, while we are discussing defending public services, I would like to mention the Transatlantic Trade and Investment Partnership. There is widespread concern that this trade agreement, currently under discussion between the EU and the US, would be detrimental to the NHS. Reassurances have been given, notably by EU Trade Commissioner Cecilia Malmström last year when she said:

“Member states do not have to open public health services to competition from private providers, nor do they have to outsource services to private providers. Member states are free to change their policies and bring back outsourced services back into the public sector whenever they choose to do so”.

Labour’s 2015 manifesto stated that we would ensure that the NHS is protected from the TTIP treaty and I am pleased to support any amendment that reinforces this.