Local Government Funding

Debate between Graham P Jones and Joan Ruddock

Monday 6th December 2010 Commons Chamber

[Graham Jones (Hyndburn) (Lab)]

Given the short amount of time left, I shall raise just a few brief points. I want to mention the new homes bonus, a suggestion that could save money, the big society, and residualisation in east Lancashire, which is an important issue in my constituency. I also want briefly to touch on police community support officers.

My constituency is suffering some of the biggest cuts. We are facing 27% cuts across the board, but we are waiting for the actual figures. I am surprised that the Minister will not confirm those figures today. My hon. Friend the Member for St Helens North (Mr Watts), who is no longer in his place, mentioned a report produced by the all-party parliamentary group on the special interest group of municipal authorities—SIGOMA. It stated that Hyndburn was ranked as the 40th most seriously hit area, facing between 30% and 38% cuts. These can have a cumulative effect, and similar examples have been raised by other Members today.

The new homes bonus is frequently used by Ministers as a method by which councils can run for financial sanctuary, but it will have no impact on constituencies such as mine, where there are some 2,500 empty properties. Netting off demolitions will hit hard any areas where there is an over-supply of housing. This policy is a bit like throwing a drowning man a medicine ball.

Let me make some suggestions. Conservative Members say that we have no suggestions, but my right hon. Friend the Member for Salford and Eccles (Hazel Blears), who is not in her place, suggested more flexible use of the business rates, which the Secretary of State touched on earlier. Let me give him another suggestion. If he stopped scratching his head and listened to me, he might learn a thing or two. Hyndburn council calculated that removing the 50% council tax discount on empty properties will raise £660,000—an enormous sum for a district authority. At the moment, this money is clawed back through the revenue support grant deduction. It needs to be looked at. It is interesting to note that The Independent on Sunday reported that the Liberal Democrats were looking at similar initiatives—discounts and removal—for second homes.

Turning to the big society, it concerns me that the Government believe that we are moving towards such a society. I cannot see it. Let me provide an example. My local authority provides £57,000 for citizens advice bureaux. If we face cuts of between 30% and 38%, I cannot see how that is likely to continue, yet this is a time when citizens advice bureaux will see an increase in the number of people coming to see them. This will mean an increase in the work load at a time when Citizens Advice will be laying off staff. It is also affected by many other streams of direct Government funding, which are also being cut. It is obvious that there are going to be real problems. I do not think that the Conservative council of Hyndburn and Rossendale has an appetite for maintaining such funding. It is going to set a 0% council tax—a big issue, as that is going to hit the big society even harder. Many voluntary groups rely on this funding, and I cannot see how they are going to survive. Thanks to the cuts, we have already lost one dial-a-ride minibus, and I imagine that the disabled service will be removed altogether unless we see some sort of public support.

These huge cuts have a cumulative impact, so there is a growing concern in Pennine Lancashire about what I would describe as the residualisation of poorer communities. Ministers need to be aware of that. Indeed, evidence is now emerging that while populations in these areas remain relatively stable, the number of those in higher-income brackets is declining, along with those who have better education and better employment prospects. This is countered by a growth in the number of poorer, lower-income households and those with lower levels of educational achievement. These populations are, by their nature, often more dependent on public services. We therefore see self-reinforcing patterns starting to build up as a result of these cuts.

This is a crucial issue. The latest rankings for the index of multiple deprivation show that right across Pennine Lancashire, with the exception of Ribble Valley—I notice our Deputy Speaker has left—there has been a marked fall as the effects of residualisation take hold. There are real fears that the outcome will be a “ghettoisation” of parts of east Lancashire and other parts of Britain, thanks to a Government focusing solely on areas that can prosper economically rather than getting to grips with the needs of all communities.

Finally, let me touch on policing. On top of all the other cuts I have mentioned, policing is going to be cut. Police officers in my area believe that, without the extra staff, crime will rise. The police cuts are ill considered. Police community support officers are part-funded by local authorities; they tackle in partnership a wide range of social problems. No assessment seems to have been made of the wider impact of cutting PCSOs in areas where local authorities work in partnerships. I will stop there and allow the Front-Bench teams to conclude the debate.

[Joan Ruddock]

On a point of order, Mr Speaker. I think you will know that I have been in the House long enough to take the rough and tumble of parliamentary debates, but earlier today, in response to my intervention, the Secretary of State made a remark about an hon. Lady’s “champagne lifestyle”, which appeared to be directed at me. I found that really offensive and rude. Will you advise me, Mr Speaker, on whether I could expect that remark to be withdrawn?