(13 years, 2 months ago)
Commons ChamberMy hon. Friend is absolutely right. It is important to allow communities to grow and allow local people to have a stake in that growth, which is why we will ensure—both through the new homes bonus and through reformed business rates—that an ambitious local authority can improve the lot of people who live in their area, who, for the first time, will have a stake in the future.
In response to the question from the shadow Secretary of State, my right hon. Friend the Member for Don Valley (Caroline Flint), the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark) said that we were facing a crisis of growth. What does it say about the policies of the present Government that after the abolition of the regional development agencies and six months after the budget for growth, a Minister has come to the House and admitted that there is a crisis of growth?
I am very grateful for that question, not least because I am able to congratulate Southwark on today pulling in £2.6 million from the new homes bonus. That money certainly can be used in precisely the way it is required locally, and whatever the principal concerns are for local people. It is the way to incentivise more house building, and we will make sure that it works effectively alongside the Firstbuy scheme.
The Minister referred to the new scheme as relevant to the replacement of HomeBuy Direct, which as he is aware was the much more generous scheme that he scrapped just 10 months ago. Is this not another example of the Government introducing a new policy to make up for the fact that their previous policy has gone wrong?
The hon. Gentleman has got his facts wrong. HomeBuy Direct continues until 2012, so there is no question of its having come to an end. It was a funded scheme for a specific period which will come to an end at that point, so by launching another scheme that overlaps rather than replaces it, we have, I assume, achieved precisely what he would want.
The hon. Gentleman is absolutely right that the policy needs to protect the most vulnerable and to introduce fairness into the system. The expansion of housing benefit to £21 billion—a 50% expansion in the bill—over just a 10-year period is unsustainable; it is more than the police and universities budgets put together and it simply has to be brought into line. It is not fair that people can be in receipt of £2,000 a week to live in areas of London that other people are unable to live in when they work. I am quite certain that Ministers will be very happy to meet such a group.
19. What assessment he has made of the effect on third sector organisations of the reduction in local authority funding announced on 10 June 2010.
I thank the hon. Gentleman for his particularly eloquent contribution. Local authorities spending their time publishing weekly newspapers, or weekly Pravdas as the Secretary of State described them, is just not their role. We talk about front-line services, supporting people, homelessness and priority programmes to ensure that the sick, elderly and vulnerable are protected, but Opposition Members want to talk about local weekly Pravda newspapers published by local authorities. It simply is not the answer. What we want to do is ensure that local authorities are engaged in front-line services that help their population, not services that rival the local newspapers. We want to allow the local newspapers to operate without interference from local authorities.
Everyone knows that money is tight. Every strategy that we employ nationally and locally should focus on getting more for less. Innovation and efficiency must be king. The emergency Budget makes it clear that there are challenging times ahead. We want to ensure that local government is fully engaged with the next spending review. In particular, we expect councils to be involved in the series of events over the summer to discuss and debate various aspects of public spending. We will use the spending review to drive decentralisation across local government and national Government.
The Minister has said a couple of times that councils will have to do more for less. As a member of the best value and efficiency scrutiny panel on Chesterfield borough council for the past seven years, I know just how hard our council and many others worked to produce the efficiencies demanded under Gershon. Can the Minister tell us of any council leaders who have not been trying to give more for less in the last years of the Labour Government?
I accept that the hon. Gentleman and local authority leaders and councils throughout the country work hard to do those things. However, sometimes just doing something in a closed situation is not enough and we have to invite the whole general public to take part. We need to publish the stuff online, make it fully transparent and let people see what is really going on. As I explained in the context of my Department’s responsibilities, if that had been done, I do not believe that those tens of thousands—and even hundreds of thousands—of pounds would have been wasted on pointless projects. On a smaller scale, there will be examples in town halls throughout the country of money being spent on unsustainable projects, which best value committees sometimes do not reach, but a large army of armchair auditors will. It is called the general public; it is called transparency, and it will work effectively.