Local Government Finance

Gideon Amos Excerpts

Wednesday 11th February 2026 Commons Chamber

[Gideon Amos (Taunton and Wellington) (LD)]

In our manifesto, the Liberal Democrats called for multi-year settlements for local government; for councils to be freed to generate more revenue, including by charging more council tax on second homes and from increased planning fees; and for an extra £2 billion on education, including for special educational needs and disabilities. It is right that funding for local government is rebuilt after the consequences of the 2008 crash and the famous letter left by the outgoing Labour Government that they had spent all the money and there was none left. The moves forward in the areas I have mentioned through this settlement are positive and we welcome them.

The announcement that 90% of SEND service debts that councils have unavoidably built up will be met by central Government also begins to address the crisis in SEND, but I am afraid it does not finish the job. The promised SEND reforms have again been delayed. Whatever the outcome of those SEND reforms, they must not be a precursor to weakening the protection disabled children rely on and their parents expect.

Our five tests for SEND reform would guarantee that children’s rights to SEND assessments and support are maintained, and that the voices of children and young people with SEND, and those of their families and carers, remain at the centre of the reform process. Secondly, capacity in state special school provision must be increased, alongside improvements to inclusive mainstream settings. Thirdly, national Government must top up funding for each child whose needs exceed local authority provision within a given cap. The Government must get on and introduce a cap on the profits made by private sector SEND companies. Fourthly, early intervention must be improved and waiting must be times cut. Lastly, schools must be incentivised to both accept SEND pupils and train their staff.

The additional funds for housing and homelessness, while small, are welcome, including those for Somerset council in my constituency. The extra funding through the recovery grant is also welcome, but places such as Kingston upon Hull tell us that it does not go far enough and will not fill the gaping hole in financial stability that persists. It is disappointing that social housing does not get a mention in the settlement. We need a new generation of council and social rented homes. Our plans are for 150,000 per year and Shelter’s are for 90,000 per year. Both would be a good proposition. The Government’s proposal for 18,000 per year just will not meet the level of need out there.

The additional funding, along with provision for SEND deficits, will help councils like mine in Somerset to keep the council tax rise to the 4.99% norm across the country. In a cost of living crisis, people cannot afford more than the minimum increase. That is something Somerset MPs and the council pushed hard for, and I am grateful to the Local Government Minister for meeting us and engaging with us on that. It is notable that 70 out of the 74 Liberal Democrat-led councils have kept the council tax rise to the norm minimum of 4.99%. The four that are, exceptionally, going above that all inherited from their previous Conservative administrations a social care funding time bomb.

Voters will take note that Reform-led Worcestershire county council is increasing council tax to the highest level allowed in the country. Typically, Reform Members are not here to take part in the debate on local government finance. The message is clear: vote Reform and pay more tax than anyone else in the country.

[Layla Moran (Oxford West and Abingdon) (LD)]

My hon. Friend is giving a powerful speech outlining how Liberal Democrat councils up and down the country are doing their best in this cost of living crisis. Oxfordshire county council finds itself in a £24 million deficit as a result of the settlement. Meanwhile, residents on the doorstep are saying to us, “What about my potholes?” He is right to point out that social care is part of that demographic deficit. [Interruption.] Does he agree that we need to tackle the core issues and that one of those is social care, because sorting that out helps everything to do with local government finance?

[Gideon Amos]

My hon. Friend is absolutely right. Conservative Members ask, from a sedentary position, who runs the council, but I use the phrase “inherited time bomb” advisedly. The well-respected Conservative former leader of Somerset county council, Dave Fothergill, was one of the first in the country to identify this issue. He told “Panorama” back in 2019 that adult social care was a time bomb that was ticking. That time bomb has now gone off around the country, and council tax payers are having to bail out the broken social care system.

[Steve Darling (Torbay) (LD)]

For Torbay council, on which I still serve, incredible assumptions are being made about the levels of council tax being collected. That results in a deficit of £13 million in years 2 and 3 for a small unitary authority. Does my hon. Friend agree that the Labour party has been learning from the Conservatives, and is planning to balance the books of councils on the backs of local tax payers?

[Gideon Amos]

I certainly agree with my hon. Friend, who champions Torbay on a regular basis in the Chamber. Councils are suffering reductions in their funding settlements across the country, which is one of the reasons we cannot support the amount of support they are getting from central Government.

[Mr Betts]

There is again memory loss on the Lib Dem Benches. It was the coalition Government who made the biggest cuts to local government funding and started passing funding responsibilities over to the council tax system—that all began with the Lib Dems in the coalition Government. Why does the hon. Gentleman not apologise to the Chamber and to people up and down the country for what the Lib Dems did to them when they were in government?

[Gideon Amos]

The hon. Gentleman is right that massive savings were made after the financial crash in 2008—some would say around £40 billion over the coalition years. He would be horrified to learn that the only people suggesting cuts greater than £41 billion were those in the Labour party in their 2010 manifesto, which proposed £56 billion in cuts. [Interruption.] If the hon. Gentleman does not believe me, he can look at the headlines of the time: “Alistair Darling: we will cut deeper than Margaret Thatcher”. That was Alistair Darling in his 2010 Budget. Who began austerity? Who began the cuts? It was the Labour Government, who were planning to go further, faster and deeper, according to Alistair Darling, than the Liberal Democrats or the coalition did.

[David Simmonds]

I just want to ask the hon. Gentleman whether he agrees with the Labour leader of Sheffield council, who says:

“Cost pressures continue to outstrip increases in funding, both specific inflationary pressures in major service areas, particularly for care, accommodation and construction, and the increasing volume of demand in housing and care.”

Is the Labour leader in Sheffield correct?

[Gideon Amos]

I hesitate to get too involved in the politics of Sheffield.

I am concerned that we are seeing reductions in Government funding for councils across the country, particularly in the case of rural authorities, which are especially hard hit by this settlement. Rural authorities find delivering social care and other services far more costly than in tightly drawn urban areas; Somerset’s 4,000-mile road network, for instance, is a massively more onerous proposition than a network in a tightly drawn urban area.

It is inexplicable that despite a consultation that considered maintaining the remoteness funding uplift across the country and across all funding heads of local government, it has been taken away from all funding heads apart from adult social care. Why would it be less costly to provide children’s services than adult’s services in a remote, rural area? Why would it be less costly to provide flood relief and flood protection than adult services in a rural area? A whole range of really remote authorities are affected, including Westmorland and Furness, Somerset, Devon and Cornwall, all of which are particularly badly hit.

Remote authorities have much greater areas to protect from flooding. I have spent recent days with families in Stathe and Burrowbridge on the Somerset levels in my constituency, where I have seen how heartrending it is for families to watch the water coming closer and closer to their homes. Some people are going to bed with the water 200 metres away, but by the time they wake up the next morning and look out of their window, it is only 20 metres away. In some of the places I visited, the water is lapping up against the houses themselves.

When Conservative Prime Minister David Cameron came down in 2013-14—the last time we had severe flooding—he promised Somerset that money would be no object. It turned out that he meant that Somerset residents’ money would be no object, because Somerset’s new rivers authority became the only one in the country not to be funded by central Government and to have to rely on local taxpayers.

When the Flooding Minister, the hon. Member for Kingston upon Hull West and Haltemprice (Emma Hardy), came down to Somerset yesterday, she said that Somerset will not be forgotten. I ask the Local Government Minister what extra support the Government are providing to Somerset council to deal with this flooding major incident, which could easily become a national emergency if effective measures are not taken now—and I mean in the next few days. Water levels are still rising, Minister.

Finally, we need an end to the massive expense of all this top-down reorganisation of local government where people do not want it. Forcing change on the structures of the natural communities that people know and love can only distract from the important work of reducing flooding, delivering care and all the other priorities that councils put first. No one I have met in Taunton and Wellington, in Somerset or on the levels has told me that what they really want to see is a metro-style mayor for their area coming down the road. Is spending almost half a billion on mayors really going to help any of our constituencies in the way that known, understood and strengthened local councils would?

While we welcome the limited extra funding, the settlement leaves too many questions unanswered on how SEND costs will be met. It is still going to lead to big cuts in services for rural and remote authorities, and on social care it leaves council tax payers bailing out a broken system. For all these reasons, we cannot at this stage support the settlement.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Housing, Communities and Local Government Committee.

--- Later in debate ---

[Mr Betts]

I certainly do. My next point was going to be that deprivation is properly recognised in the funding settlement. The problem is that councils that have deprivation either across their area, or in part of it, have borne the burden of the cuts over many years. Under previous Governments, both coalition and Conservative, councils with the greatest need—which previously had the largest grants to reflect that need—faced the biggest cuts. This funding settlement gives the biggest increases to councils that faced the biggest cuts under the last Government; we are getting some restitution for the funding reductions that we suffered. The recovery grant is right, because councils need recovery when their funding base has been decimated, after grants that they needed were taken away from them. My one challenge to my hon. Friend the Minister is that the recovery grant lasts for three years, so there is a danger of a cliff edge in 2029, when those councils that now get it may suddenly lose it. The Minister is obviously trying to think ahead, which makes a change from previous Ministers, so let us start to think about that problem before it hits us.

I welcome the settlement for Sheffield. I think the comments made by the leader of the council—which is a cross-party council—were about the council’s concerns and the challenges it faced prior to this funding settlement. The finance director of Sheffield council has said that

“The figures announced in the LGFS back up the Government’s commitment to redressing the unequal cuts seen during the austerity years of the previous Government, and its aim to deliver more funding to deprived areas of the country.”

I think that is a fair statement from the officer responsible for the council’s finances. In this funding settlement, Sheffield has got about £55 billion more over three years than was anticipated under the previous proposals, which sort of fills the hole. In the past, we have been making cuts to essential services, but for the first time in 15 years, we can start a budget process without immediately looking at cuts to those services. Year after year of cuts—that has been the situation. Now, the budget can be balanced without those cuts, which is a fundamental change. We can start to look at some improvements and preventive measures for the future that will bring about the sort of change we all want. I say well done to the Government for getting us to that position.

I also say well done to the Government for dealing with the ringfences—not just in the Minister’s Department but across Government, whether they be in transport, health or education. There are ringfences all around that restrict local councillors’ ability to do the right thing for their communities, so it is good that the Government have moved in the right direction. The current Select Committee and previous Select Committees have called for that change, and the Government have listened. To be fair, when Michael Gove was Secretary of State, there was an agreement that this needed to happen, but not much evidence that it did happen. I think we have moved in the direction that everyone wanted us to take.

This settlement is a good start. It steadies the ship after the cuts that councils with higher levels of deprivation have had to suffer, and it brings in a strong element of fairness. Now, I am going to challenge the Minister—I know she would not expect me to be completely complimentary. I come back to the point that the Chair of the Select Committee, my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi), made about the need for change. This is a good start, but there is a need for radical change. We came in with a manifesto of change; we have a large majority, and with willingness, we can deliver on it.

There are major issues in social care. I am still disappointed that we will not make changes to social care funding until 2029, after the review. I think we could make them more quickly. We are clearly moving on special educational needs and disabilities, but we need to move on children’s social care as well. There are things that some councils can do to help themselves; for example, Warrington council has started to build its own children’s home, so that it does not have to send children to very expensive private homes.

[Gideon Amos]

We may not agree on the cuts, which began in 2009, but the hon. Member has not yet touched on the removal of the remoteness uplift. Does he agree, in a cross-party spirit, that including a remoteness uplift just for adult social care, but not for children’s services or any other services, is contrary to common sense, and affects remote rural authorities more than others across the country?

[Mr Betts]

I will not go through every detail of this settlement. There is always a balance to be struck in local government settlements, and Ministers have to make their own judgments about that. It is the overall impact that I want to judge the settlement by. For me, this is a fairer settlement for those authorities with high levels of deprivation and some of the worst cuts in the years of austerity.