Post Office and Horizon Software

Gerald Jones Excerpts

Thursday 5th March 2020 Westminster Hall

[Lucy Allan]

The hon. Lady is right and I fully endorse what she says. One direct benefit of the settlement and the conclusion of the litigation is that, as the representatives of postmasters who have been so grotesquely wronged, we now have the opportunity to correct that. I am thankful that the day has come.

I say to all those postmasters affected by this injustice that this debate is just the beginning. The Prime Minister has promised to get to the bottom of what happened, and I understand from what I heard at Prime Minister’s questions last week that he has agreed to an independent inquiry. Regrettably, in my experience, those responsible will have long since retired before any such inquiry even gets under way, but it is in any event a welcome first step.

What is hugely to be welcomed—I think all sub-postmasters affected will welcome this—is that next week the BEIS Committee will begin holding its inquiry and taking evidence. My constituent, Tracy Felstead, will be giving evidence next Tuesday. She is perhaps one of the most tragic cases, having only been a young 18-year-old girl in her first job straight out of school, delighted to be going to work for the Post Office. She ended up in Holloway Prison for six months and is still struggling to come to terms with the reality of what happened to her. The BEIS Committee inquiry is a fantastic opportunity for all the issues of the Horizon accounting system to be explored, in-depth and in public, and that is very important. The hon. Member for Leeds West (Rachel Reeves) is a very thorough Chair, and she will hold those responsible to account through her Committee. I know that all of us here today will welcome that.

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

I thank the hon. Lady for bringing this debate. I certainly welcome the BEIS Committee inquiry into the issue. Although justice and compensation are entirely appropriate, does she agree that no amount of compensation will restore the dignity that was lost by so many or repair the damage done to people’s physical and mental health by this long-standing scandal?

[Lucy Allan]

The hon. Gentleman is absolutely right: no amount of money will ever compensate those affected. We need to help them get their lives back on track, and there are various ways we can do that. Having a sense that justice has been done is incredibly important, even if it is not possible to fully compensate for the losses suffered.

EU Structural Funds: Least Developed Regions

Gerald Jones Excerpts

Wednesday 26th June 2019 Westminster Hall

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

It is a pleasure to see you in the Chair, Ms McDonagh. I congratulate my hon. Friend the Member for Sheffield Central (Paul Blomfield) on securing the debate and on the case that he outlined.

For the past 20 years or so, Wales has been a net beneficiary of the European regional development fund and that funding has allowed the transformation of towns and villages across south Wales. There has been hugely significant investment in Merthyr Tydfil town centre, which has helped to regenerate the whole town centre—a new college development, and the creation of a new square that has become the focal point for a calendar of cultural events. The A465, which my hon. Friend the Member for Blaenau Gwent (Nick Smith) mentioned, and which has had a history of collisions over many years, has vastly improved because of a continuing project to create a dual carriageway. There is one more phase to complete, linking my constituency to west Wales and, to the east, through to the M50, M5 and midlands. That has all been possible with the support of regional development funding from the EU.

In communities across my constituency, such as New Tredegar, Treharris, Bedlinog and Rhymney, there have been transport schemes, flood alleviation works and town and village centre regeneration, all supported through regional development funding, which has proved essential in beginning the process of regenerating communities across the south Wales valleys.

As we heard from my hon. Friend the Member for Sheffield Central, the Thatcher Government ripped the heart out of our communities, threw countless people’s jobs on the scrapheap and decimated towns and villages across south Wales, without having any plan to replace the jobs that were lost. The economic decline of the ’80s and ’90s can still be felt today, despite the investment that the valleys have had, which stemmed from the work of the Labour Government. I have tried to outline the history of the communities that I represent, and to highlight why economic deprivation exists. We benefited from regional development funding quite simply because we needed it, which is why it is essential that we now have clarity from the Government about the future for the shared prosperity fund. The Government have not been clear about their proposal for the fund. We were promised, as we have heard, that consultation would take place before the end of 2018, and we are now halfway through 2019. There is no sign of the consultation. As my hon. Friend the Member for Aberavon (Stephen Kinnock) has said, that is completely unacceptable.

A few weeks ago in Welsh questions I asked the Secretary of State to provide clarity on the fund and how it would work, what areas of the country would benefit, and how much the fund would be—and there was no answer from the Secretary of State. I hope that today the Minister will provide some of the clarity that is needed. The people of Wales, and people across the UK, were told by the leave campaign that we would not lose a penny if we left the EU. As things stand, we are due to leave the EU later this year and we are still unclear about the many millions of pounds that Wales currently receives as part of the EU, and how that money will be replaced by the Government. There is a need for certainty, so I have two questions for the Minister. Will the new fund be based on need, and will the Government respect devolution in their allocation of the new funding?

Local Government Funding

Gerald Jones Excerpts

Wednesday 27th March 2019 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mrs Main. I congratulate my hon. Friend the Member for Colne Valley (Thelma Walker) on her speech and on securing the debate.

Many of the services that are closest to the people we represent and that many people value and appreciate are delivered by local councils. Many of them, such as collecting refuse, recycling, street cleansing, operating street lighting and keeping street drains clear, are easily identifiable council services but, as we know and as my hon. Friend highlighted, councils do much more. They provide education, social and youth services, libraries, community centres, leisure centres, allotments, play areas, car parks, local tourism and business support. They also facilitate a huge amount of partnership working by acting as the conduit for joint working between police, health, the third sector and others. Many local authorities also still provide housing services and even those that no longer have housing stock still provide limited private sector housing support and are responsible for taking the lead on tackling homelessness.

I spent the 20 years before I was elected to this place in 2015 as a councillor and cabinet member. I was first elected in 1995. My first experience as a councillor was marred by the huge financial pressures that local authorities were under. I was full of hope at first that I would play a part in making a positive difference to the community that had just elected me. Is not that why we are all elected? However, the council I was elected to was subjected to massive cuts in my first two years as a councillor. Our annual budget was cut by £30 million over two years. That happened from 1995 to 1997, in the dying days of the Thatcher-Major Tory Government.

From 1997, things changed dramatically and for the 13 years under a Labour Government the council’s funding increased year on year. There were modest increases in the early years but more significant increases followed—in one year reaching almost 10%. Those were years when local authorities thrived. I recall one year when I was the youth champion for the authority and was able to argue for and obtain an additional £150,000 for youth services in the following year. There are many other examples when funding was available to support local services.

[Faisal Rashid (Warrington South) (Lab)]

Local councils provide vital services to our constituents, whether on fly-tipping, homelessness, adult social care or children’s services. Any funding cut is a direct attack on our constituents. Does my hon. Friend agree?

[Gerald Jones]

I certainly agree, because cuts dilute local authorities’ ability to act on behalf of the people they represent.

Local authorities have been at the forefront of strategic partnership working in relation to developing and prioritising projects to secure and utilise European funding and co-ordinating the securing of match funding so that residents get maximum benefit for the investment. That, sadly, will be hugely diminished as we leave the European Union. Despite a promise from the Government they have yet to confirm the mechanics of how the shared prosperity fund will work, which leaves communities to wonder whether the commitment from Conservatives on the leave side who promised that our country would be no worse off was no more than a sop to gain support.

Financial support for local councils started to change in 2010. Since then our local councils and public services have been starved of investment. In Wales, local government is devolved to the Welsh Government and the block grant for the Welsh Government is now some £4 billion less than it was in 2010. In the early years of austerity, the Welsh Government protected councils in Wales from the harsh policies of the Tory-Lib Dem coalition. I remember speaking to local government colleagues in England at the time and hearing the horror stories about how council services were starved of investment. As the years have passed and austerity has continued to bite hard, the ability of Welsh Government to protect local councils has been diminished. Although in Wales the responsibility for local councils lies with the Welsh Government, I am in absolutely no doubt that the cause of the pain being felt by councils and public services in Wales lies with the harsh austerity policies of this Tory Government.

In the most recent budget round, Merthyr Tydfil County Borough Council and Caerphilly County Borough Council, which cover my constituency, were again forced to cut millions of pounds from their annual budget and they have also been forced, along with many authorities across the UK, to increase the council tax by more than 5%, which has been the maximum upper limit in recent years. Some councils are even starting to use reserves to plug the revenue gap, which is a dangerous precedent. Reserves are often earmarked for specific commitments while the much lower free reserves are there for emergencies and one-off expenditure. As we know, once they are used to plug the gap in revenue funding, greater problems are created for future years.

We have heard in recent debates in the House that cuts to policing have had a big impact in many communities where crime and antisocial behaviour have increased. However, that is exacerbated by the fact that, owing to cuts to council services, there are fewer youth workers, education welfare officers and social workers, and generally less funding for work with the police and partners to manage antisocial behaviour and reduce crime. Local councils play a huge part in crime reduction and in reducing low-level nuisance and antisocial behaviour. We should not underestimate the importance of their role.

In conclusion, in the early years of austerity some local councils and public bodies were able to find efficiencies to make their budgets stretch. People were expected to do more with less money and fewer people, which put remaining staff under increasing pressure. However, after nine years of painful austerity there are no more efficiencies to find. The low-hanging fruit has all been picked long ago. As I said in questions on the spring statement a few weeks ago, all that is left to cut is jobs and frontline services.

I make a plea to the Minister today to recognise the pain that austerity has caused and the fact that local councils are not able to withstand any more cuts. The Government need to show compassion. The services that we are discussing are those closest to the people. We know from press reports that Tory-led councils are also experiencing financial pressures. People are feeling the pain across the country, so please will the Minister give us some hope that austerity really has ended?

Budget Resolutions

Gerald Jones Excerpts

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

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

Just a few weeks ago, during the Conservative party conference, the Prime Minister told us that austerity was over. Like many others, I was a little optimistic, thinking that the massive cuts to and huge financial pressures on our public services and local councils were finally coming to an end. This week’s Budget demonstrates that my optimism was misplaced. This Tory Government remain out of touch with the misery that they have inflicted on public services and local councils throughout the UK. The Chancellor now tells us not that austerity is over, but that it is coming to an end. This is, indeed, a broken-promises Budget.

Since 2010, there have been huge cuts to our public services. The grant to the Welsh Government has fallen by 7.2%, which means that Wales has around £4 billion less to spend than it would have had if its budget had kept pace with inflation.

We constantly hear the Government’s rhetoric about the financial position that they inherited. They constantly try to push a myth by referring to “Labour’s great recession” or a similar nonsense term. However, unfortunately for the Government, the people of this country will not fall for that. The British people know only too well that the 2008 financial downturn was a global one and did not originate in this country. Furthermore, although Gordon Brown had influence, as indeed do all Prime Ministers, causing a global financial downturn is a little bit outside the scope of their power.

The reality is that austerity has been the political choice of this Government and the coalition Government in 2010, based on political ideology. As I mentioned, the Welsh Government have had a huge cut since 2010, and although they tried to protect Welsh councils in the early years of austerity, Welsh local councils now face a very difficult financial situation. Some £4 billion less in the Welsh budget has a drastic impact on public services and local councils in Wales. Further cuts in my area will likely mean a significant reduction in street cleansing, grass cutting and highways maintenance, as well as the closure of civic amenity sites, a reduction in the budget for libraries and youth services, a significant reduction in school budgets and school initiatives, and the closure of leisure centres and community centres.

Let us make no mistake: these cuts and many more like them across the UK are the result of this Tory Government’s austerity agenda. I was a councillor for more than 20 years, so I fully appreciate that local councils are at the forefront of service delivery in our communities. They are having to make hugely tough decisions about cutting local services, but they are decisions over which they really have very little choice, owing to the harsh austerity inflicted by this Government. The Budget does not signal the end of austerity; the only thing that it delivers for families and communities is more cuts and misery.