Budget Resolutions

Grahame Morris Excerpts

Thursday 7th March 2024 Commons Chamber

[Dame Jackie Doyle-Price]

I agree, and we should embrace this outbreak of consensus. The hon. Lady is absolutely right, because we cannot tackle this in a silo. Ultimately, it is for the local authority to ensure that a statement of special educational needs is given, but equally, local authority budgets are under pressure. I went to my local education authority a few years ago to talk about the need to progress a free school application for special provision, and I received a clear message: “We don’t want to encourage that, because people will move here, and we would have to look after them until they are 25.” We need to look at this at a high level to make sure that we deliver the provision that is needed across the board.

Turning to the substance of the Budget, I welcome the decision on national insurance, which is clearly no longer the contributory levy that it once was. The idea was that people bought credits towards their pension and out-of-work benefit entitlements, which have become much more universal, so national insurance makes no sense as a separate tax. That raises a philosophical debate about whether there ought to be a contributory principle for some services. In particular, we still await a long-term solution to funding social care.

Although I welcome the aspiration to remove national insurance, we still need to sort out social care funding. There is still uncertainty about how we fund social care, and local authorities are again left to pick up the pressure. It has been very convenient to give local authorities that responsibility, but we need to do our bit. Ultimately, everything has to be paid for. If we are to have mature and sensible long-term decisions at central Government level, we need to give local authorities the same space. While there is still uncertainty about how the cost of social care will be met, local authorities cannot make sensible decisions, and the disasters that the hon. Member for Halifax described will only become more common.

We need to look again at how to ensure that local authorities make mature and sensible decisions about their budgeting. The Audit Commission has been replaced by audit firms, and the frank advice that ought to be given has simply not been given. We used to have the surcharge, which was a very blunt instrument, to ensure that councillors made mature and sensible financial decisions, but now councillors have no stake.

We often say in this place that we have great champions for local communities, but we have to show leadership and maturity in making sensible decisions. When it comes to local councils, we have the same situation on speed. They have great local ward champions who view themselves as street-by-street spokespeople for every problem, but they perhaps do not properly recognise their corporate responsibility for making sensible judgments. Councils are multimillion-pound businesses that are there to deliver outcomes for the whole local authority area, not just individual wards.

As well as looking holistically, we need to make sure that, where local authorities get things wrong, there is an element of accountability outside the ballot box, especially because local election turnouts are so poor. That is all our fault. We are all politicians, and it is our job to motivate people to vote for us. I am often frustrated by the knockabout of political debate, which is a big turn off—it is sometimes a big turn off to sit here on a Wednesday lunch time. For people who are not engaged with politics, it is an even bigger turn off. The result is that, particularly in local politics, people zone out and switch off.

Even after the biggest failure in local government finance, the turnout in my local election in Thurrock was less than 20% in some wards. Is that not shocking? It tells us that the public are thinking, “Well, it doesn’t make any difference. It doesn’t matter who I vote for. Nothing will change.” We should all think about that as the general election approaches, because I detect the same mood out there.

[Grahame Morris (Easington) (Lab)]

The hon. Lady is never a turn off for me. She is making some excellent points, not least in respect of SEND children and kinship carers. The needs of those individuals and groups should be addressed.

On local government finance, my local authority is a coalition of Conservatives, independents and Lib Dems. Heaven knows I have criticised it an awful lot, quite justifiably, but we should recognise that all local authorities, including mine and Thurrock, have had to deal with huge cuts over the past 10 or 14 years. My local authority has had to cut £260 million from its revenue spend. I was looking at some figures, and would it not be more sensible to change council tax—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. We have quite a lot of time this afternoon, but that is an incredibly long intervention. I am looking forward to the hon. Gentleman’s speech in due course.

--- Later in debate ---

[Grahame Morris (Easington) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Oldham West and Royton (Jim McMahon). My constituents, like his in Oldham, have a sense of disappointment about the Budget’s failure to address many of the challenges that they and others in former coalfield and industrial areas face.

Taxes in the UK are unfairly distributed, penalising our poorest communities. Rather than supporting our fragile regional economies, Government policies and decision making take money and resources out of our communities. Data from the Office for Budget Responsibility show that, despite the headline cut to national insurance, the UK’s tax burden is the highest it has been in 70 years, and that it rises every year of the forecast period. It is true that anyone in my constituency living on the national minimum wage—earning around £20,000—will receive an extra £148.60 a year, or £12.38 per month, from the reduction in national insurance.

However, we need to look at the overall tax burden. Around 40% of that extra income will be lost to the increase in council tax. My council’s website, which gives some examples, says that those living in a band A properties will be charged £61 more next year. Of course, that figure will be much higher once we have added increases to parish police and fire precepts. The problem is compounded in areas that, like mine, have a small council tax base because the majority of properties are in bands A to C. Indeed, the additional money that councils raise will not even cover the rising costs, so we will have to pay more but see services cut.

Durham County Council will receive—I have checked this figure—£130 million less in revenue support in 2024 compared with 2010. Indeed, a survey by the County Councils Network found that 95% of local authorities are increasing council tax by the maximum permitted 5%. In east Durham, that means that our poorest communities are paying the most. Here is an interesting example: a band A property in Easington Colliery faces a council tax bill of £1,671, which is not far short of the Prime Minister’s £1,824 council tax bill for his band H flat in Downing Street. If the Prime Minister were paying council tax on a band H property in Horden in my constituency, his council tax would be £5,157.88. Despite our property prices being significantly below the national average, our poorest communities, and residents in my constituency, are facing council tax bills similar to that of the Prime Minister. Council tax is a new poll tax in all but name.

I often feel like a lone voice advocating for a proportional property tax, but I should not be, because it would benefit 77% of UK households. Proportional property tax is a flat tax—a charge of 0.48%—on a property’s current value. It would effectively be an annual economic stimulus to the regional economies worth £6.5 billion a year, increasing disposable incomes of households in the poorest communities, which do not enjoy the same levels of public and private investment as households in London and the south-east. Services that take up the largest part of Durham County Council’s budget are adult social care and looked-after children. Those are important services, but they should be funded nationally based on a needs assessment.

Those costs should not fall on local taxpayers, particularly as we have seen a rise in some councils and service providers effectively outsourcing those with complex needs by moving their people into our poorest communities. If the Minister is not aware of that issue and wants to understand how councils in the south are gaming the system at the expense of my constituents, I recommend that he reads an article by the Express journalist Zak Garner-Purkis—I do not normally recommend the Express, but he is an excellent journalist.

Far from giving our communities a chance, the Government’s policy, taxation and investment decisions are widening the economic divides in our country through higher taxes and a lack of public investment, which impact on the private sector’s willingness to invest in my constituency. Of course, there would be opportunities if we had the right investment and growth policies. We have large areas with derelict and run-down housing that would be ideal for redevelopment and the creation of decent family homes, but we have a tax and investment system that holds back our regional economies and deprives them of opportunity. We have a Government who refuse to take any steps to address widening economic disparities—I thought that was the whole purpose of levelling up.

There are other national issues that affect my constituency, including the NHS: there are long waits in A&E, and NHS dental provision is collapsing. We have over-subscribed schools, a lack of home-to-school transport, and schools in a poor state of repair—not only those affected by RAAC or asbestos, but some quite new schools built by disreputable construction companies that have fleeced the taxpayer.

The Conservative party has now had 14 years, either in government by itself or in coalition with the Lib Dems and others, to improve the opportunities for constituencies such as mine. However, 14 years on, the problems that our country faces today are just as deep-rooted and extensive as ever. The Chancellor and the Prime Minister say that they are proud of their record. Well, I think my constituents have reached the same conclusion as many others. They say it is time to put that confidence to the test. If this Government have a shred of integrity, we should be going to the polls on Thursday 2 May for a general election. The Chancellor’s Budget has lifted the lid on 14 years of Tory economic failure: taxes are still rising, prices are still going up for consumers, mortgages are going through the roof, and the Chancellor did nothing yesterday that is going to change that. We need a Government that can rebuild Britain. It is time for change. It is time for a general election.