Recall of MPs Bill

Debate between Graham P Jones and Lord Beamish

Monday 27th October 2014 Commons Chamber

[Graham Jones (Hyndburn) (Lab)]

The question of what these limits are is important. What does recall mean to a person of limited means when they are up against big money?

[Mr Jones]

Exactly, and I made that point last week. If I had the £250 million or £300 million the hon. Member for Richmond Park has, I would not have to worry. [Interruption.] Well, I am sorry, but it is a matter of fact. [Interruption.] Of family history, as my hon. Friend the Member for Cardiff West (Kevin Brennan) says. If someone has that amount of money, it influences the way in which they can conduct recall elections. If I had that amount of cash, I do not think I would be bothered even if I lost it.

Local Government Finance Bill

Debate between Graham P Jones and Lord Beamish

Tuesday 24th January 2012 Commons Chamber

[Mr Kevan Jones]

It is a pleasure to serve under your chairmanship again, Mr Robertson.

My hon. Friend the Member for Warrington North (Helen Jones) used a good analogy when she said that this measure is intended to centralise power but decentralise blame. Local councils will be given options over, for example, a 10% cut in council tax benefit. They will face some difficult decisions about how that is to be distributed. When the Minister wrote to Newcastle’s The Journal last year, he did not even mention that in his supportive letter on the letters page. We need to be clear to local people that this is not about decentralisation but about putting power back into the hands of the Secretary of State and, ultimately, those of the Treasury.

We had an interesting discussion on the previous group of amendments about whether there would be any money left to distribute at the end of the year. The hon. Member for Bradford East (Mr Ward) asked the Minister what would then happen, but he did not answer. I suspect that this mechanism is being used so that the Government can use local government-raised finance to offset central Government expenditure. It might be given back to local authorities, but only as a substitute for other types of grant. It is all about centralisation.

In the settlement of the accounts in the first few months of the coalition Government, the Secretary of State was the first Minister to run to the Treasury saying, “I’ve got my plans and I’ll give up my savings to meet the Chancellor’s targets.” If he again finds himself with a large pot of money left at the centre, no doubt he will offer it up to get himself some credence in the Treasury and in the eyes of the Prime Minister as the Secretary of State who is doing best in financially managing his Department, even though the pain of that is being borne on the shoulders of local businesses and local people.

[Graham Jones]

My hon. Friend makes a good point about offsetting Government expenditure and local expenditure through raising the levy and taking local taxes. Could Jobcentre Plus be an example of where the Government might look to spend local money on what is now essentially a national service given the changes in the delivery of housing benefit?

[Mr Kevan Jones]

I think that this Secretary of State will be very creative. He will no doubt put out a press release saying that he is giving money to local councils and various initiatives, without telling them that it is their own money. The difference is that he will now have control over how the money is spent, rather than the local councils.

My hon. Friend the Member for Warrington North asked on what basis money will be redistributed. The Government’s track record shows that they do not recognise need as an element in the redistribution of capital. We need only look at last year’s local government settlement to see that.

As my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) said, the baseline will be set for the next 10 years, so councils will not only lose out in the first year but will continue to lose out over the next 10 years. County Durham’s revenue spending power for 2011-12 is £498.2 million, which is a reduction of £35.9 million or 6.73% of its budget. It will see a further reduction of £10.94 million in its spending over 2011-12 and 2012-13, which is a further loss of 4.5%. That will be used as the baseline. This will continue, as my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) said, for ever more.

Which councils did the Government reward in the settlement? They rewarded southern councils with far lower demands on local government services than councils such as Durham county council. I do not think that that was done by accident.

--- Later in debate ---

[Mr Kevan Jones]

Yes, that has quite a ring to it. The council might have to do that to keep in with the Secretary of State.

[Graham Jones]

Pickles dyke.

[Mr Jones]

Yes, or Pickles dyke.

Local Government Finance Bill

Debate between Graham P Jones and Lord Beamish

Wednesday 18th January 2012 Commons Chamber

[Graham Jones]

My hon. Friend raises a crucial point that has not been mentioned—the role of local enterprise partnerships. Lancashire has had a terrible problem with LEPs, which are skewing investment in certain areas and not interested in other areas—those who have been involved have said as much. The role that LEPs play across these district areas is not promoting business in certain parts, and that is having an adverse consequence. How can business be promoted and how can success be obtained in those conditions? Again, the Government are accountable for this.

[Mr Kevan Jones]

Again, that is part of the contradiction in the Government’s thinking and policy. As we have seen, LEPs are toothless tigers. They are not going to produce much growth or investment, as I know from the ones in the north-east. Certain people in the business community are becoming increasingly cynical and feel that LEPs are just going to be talking shops, rather than organisations that will do things to regenerate areas or attract growth.

Amendment 19 refers to “need” and, as my hon. Friend the Member for Warrington North (Helen Jones) said, it sets out the important issues that we need to take into consideration. I know from my north-east constituency that unemployment is a very important issue to take into account. The level of unemployment stands at 11.7% in the north-east of England, which is 3.5% above the national average. As my hon. Friend said, unemployment means that additional services are required and it puts further strains on local councils, which is why it is important to take it into account.

This debate is also about where we start from, which is why it is important to take the council tax base level into account. In the north-east, 50% of properties are in the lowest band, band A, whereas the corresponding figure for Surrey is just 2%, with 75% of properties there being in band D and above. It is very difficult for councils in the north-east to raise extra finance outside the business rate, so we are not starting on a level playing field. Mention has been made of South Tyneside, where 66% of properties are in band A, and that must be compared with the figure for Kensington and Chelsea of less than 2%.