(5 years, 2 months ago)
Commons ChamberAnyone who truly cares about passing on a cleaner, greener, better globe to our children and grandchildren will warmly welcome the content of today’s statement and will be glad that the whole House has risen above party-political bickering to do just that. The Secretary of State mentioned the manufacturing of electric cars, so will he congratulate Dyson in my constituency on investing £250 million in research and development at Hullavington in my constituency? Will he seek to try to persuade Dyson to make good use of vacated automotive manufacturing facilities nearby, perhaps by manufacturing vehicles at the Honda site in Swindon?
I agree with my hon. Friend, and I congratulate and praise Sir James Dyson. He is one of our most brilliant inventors and entrepreneurs, and he makes a big contribution to our country, not only through the people he employs, but in the education training that he gives. I share my hon. Friend’s ambition for us to be able to attract Dyson to locate manufacturing facilities in the United Kingdom. We have the research, the brains, the skilled workforce and the facilities. I hope, in time, that we will be able to celebrate further opportunities that Dyson may have in the United Kingdom.
(5 years, 6 months ago)
Commons ChamberAs I said in my statement, this is a time of change and challenge, but also of opportunity for the automotive sector. I have been proud that in the two or two and a half years since the referendum, notwithstanding the concerns that have always been expressed to me—it is the first thing people have said when I have met boards—we have won every single competitive automotive decision that has taken place in Europe. It is frustrating that this and the X-Trail have gone to Japan, but I think all of us take pride in the fact that the efficiency and the potential of the British manufacturing sector have been recognised in that way. However, it is apparent, as my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon) has said, that although a degree of uncertainty was expected after the referendum decision, this has now got to the point—as I am told time and again in boardrooms in this country and around the world—where the time taken is unconscionable and if we do not act, we will see decisions not simply deferred but moved elsewhere.
I am confident that I speak on behalf of my hon. Friend the Member for North Swindon (Justin Tomlinson), my hon. and learned Friend the Member for South Swindon (Robert Buckland), my right hon. Friend the Member for Devizes (Claire Perry) and my hon. Friends the Members for Chippenham (Michelle Donelan) and for Salisbury (John Glen). The constituents of all of them may be affected by this matter, but they are all unable to take part in this statement because of their roles as Ministers.
Across Wiltshire, we are deeply concerned about the 3,500 job losses and potentially more in the supply chain. May I therefore volunteer to take part in the excellent taskforce that my right hon. Friend the Secretary of State has announced? I think that is a very useful step forward. Will he join me in rejoicing at the fact that the economy of Wiltshire is actually extremely strong at the moment? The unemployment figures announced this morning are the lowest there have ever been, and we have had huge growth particularly in electric car manufacturing and our high-tech industries across the M4 corridor. I hope he will join me in thinking that we will therefore be able to find useful employment for all these people in good time before the plant closes.
Like my hon. Friend, I pay tribute to our colleagues, my hon. Friend the Member for North Swindon, my hon. and learned Friend the Member for South Swindon and my right hon. Friend the Member for Devizes, whose commitment to the success of the economy in Wiltshire is unflagging.
My hon. Friend the Member for North Wiltshire (James Gray) is absolutely right to refer to the fact that the success of Swindon and the whole of Wiltshire has been notable. In fact, one of the problems that Honda has occasionally discussed with me in the past is its struggle to recruit the volume of labour that has been required. It is a matter of sadness that that will not be a problem for the future, given this decision. He is right to emphasise that the demand for the kind of skilled labour that exists in that county is very strong. Through the taskforce, we will do everything we can to make sure that employers are matched with people with skills.
With permission, Mr Speaker, I am pleased to report to the House my response to the consultation on the provisional local government financial settlement for the next financial year. I have considered all 278 responses to the consultation, and my Ministers and I have met local government leaders of all types of authority and from all parts of the country, as well as many colleagues in this House. I have listened carefully to each of them. Colleagues who have worked with me before know that I always take the views of Members of this House seriously, and I always respond when I can to practical and sensible suggestions. I am grateful to everyone who has taken the trouble to make such suggestions.
The provisional settlement contained a number of important innovations. First, although the statutory settlement is for 2016-17, I set out indicative figures to allow councils to apply for a four-year budget extending to the end of the Parliament. Such a change permits councils to plan with greater certainty. That offer was widely appreciated in the consultation, which is not surprising as local government has been requesting it for years. I want to give councils time to consider this offer and to formulate ways to translate that greater certainty into efficiency savings. I will therefore give them until Friday 14 October to respond to the offer, although many have done so positively already.
Secondly, in the provisional settlement I responded to the clear call from all tiers of local government, and many colleagues across the House, to recognise the important priority—and growing costs—of caring for our elderly population. In advance of the spending review, the Local Government Association and the Association of Directors of Adult Social Services wrote to me requesting that an additional £2.9 billion a year be made available by 2019-20. Through a dedicated social care precept of 2% a year—equivalent to £23 per year on an average band D home— and a better care fund of £1.5 billion a year by 2019-20, we will seek to address those pressures on care. The provisional settlement made up to £3.5 billion available by 2019-20.
Thirdly, recognising that council services in rural areas face extra costs, I proposed in the provisional settlement that the rural services delivery grant be increased from £15.5 million this year to £20 million in 2016-17—the year of this settlement—and provisionally to £65 million in 2019-20. Councils and colleagues who represent rural areas welcomed that, but some asked that the gap in central Government funding between rural and urban councils should not widen, especially in the year for which this statutory settlement is intended.
Fourthly, this year’s provisional settlement marked the turning point from our over-centralised past. At the start of the 2010 Parliament, almost 80% of local councils’ expenditure was financed by central Government grant. By next year, revenue support grant will account for only 16% of spending power, and by 2019-20 only 5%. Ultimately, revenue support grant will disappear altogether as we move to 100% business rates retention. Local finance through council tax and business rates, rather than central Government grant, has been a big objective of councils for decades. However, many authorities and many hon. Members, especially those from counties such as Dorset, Leicestershire, Hampshire, Worcestershire, Lancashire, and several London boroughs including Kingston and Havering, have argued for transitional help during the first two years when central Government grant declines most sharply. They have argued that other local resources would not have had the time by then to build up fully.
Much in the provisional settlement was welcomed, but specific points were raised about the sharpness of changes in Government grant in the early years of this Parliament and there were concerns about the cost of service delivery in rural areas. Another very important point was made: many colleagues and councils felt that too much time has passed since the last substantial revision of the formula that assesses a council’s needs and the cost it can expect in meeting those needs. These responses to the consultation seemed to me to be reasonable and ought to be accommodated if at all possible.
Everyone will appreciate that the need to reduce the budget deficit means that meeting the recommendations is extraordinarily difficult, but I am pleased to be able to meet all of the most significant of them. I can confirm that every council will have, for the financial year ahead, at least the resources allocated by the provisional settlement. I have agreed to the responses to the consultation, which recommended an ease in the pace of reductions during the most difficult first two years of the settlement for councils that experience the sharpest reductions in revenue support grant. I will make additional resources available in the form of a transitional grant, as proposed in the response to the consultation by colleagues in local government. The grant will be worth £150 million a year, paid over the first two years.
On the needs formula itself, it is nearly 10 years since the current formula was looked at thoroughly. There is good reason to believe that the demographic pressures affecting particular areas, such as the growth in the elderly population, have affected different areas in different ways, as has the cost of providing services. I can announce that we will conduct a thorough review of what the needs assessment formula should be in a world in which all local government spending is funded by local resources, not central grant. We will use it to determine the transition to 100% business rates retention.
Pending that review, and having listened to colleagues representing rural parts of the country, including Cornwall, Lincolnshire, Devon, Cumbria and Northumberland—
And indeed Wiltshire. I suspect I may have the opportunity to respond to colleagues. In fact, distinguished local authority leaders are with us today.
I propose to increase more than fivefold the rural services delivery grant from £15.5 million this year to £80.5 million in 2016-17. With an extra £32.7 million available to rural councils through the transitional grant I have described, this £93.2 million of increased funding compared with the provisional settlement is available to rural areas. Very significantly, this proposal ensures there is no deterioration in Government funding for rural areas compared with urban areas for the year of this statutory settlement.
At the request of rural councils, I have also helped the most economical authorities by allowing them to charge a de minimis £5 a year more in council tax without triggering a referendum. I will also consult on allowing well-performing planning departments the possibility to increase their fees in line with inflation at the most, provided that the revenue reduces the cross-subsidy the planning function currently gets from other council tax payers.
A final point from the consultation: although the figures for future years are indicative, a small number of councils were concerned that, as their revenue support grant declined, they would have to make a contribution to other councils in 2017-18 or 2018-19. I can confirm that no council will have to make such payments.
These are important times for local government. The devolution of power and resources from Whitehall is gathering momentum, yet I am aware that there is serious work for councils to do to continue to provide excellent services for residents at the lowest cost possible over the years ahead. I acknowledge the important role of Members in representing to me the recommendation of councils that deliver the services on which all our constituents depend. I am grateful for all their contributions.
My response to the consultation has been positive in respect of very sensible recommendations and as fair as possible, while holding firm to our commitment to free our constituents from the dangers inherent in the national deficit. I commend the statement to the House.
(8 years, 8 months ago)
Commons ChamberI can certainly confirm that. They are two distinct services with proud and distinct histories, but, as I think my hon. Friend would acknowledge, the opportunities for them to work together should be taken, whenever it could make a difference to people on the ground.
I was greatly encouraged by what the Secretary of State said about amalgamating services, particularly with local authorities. Wiltshire fire service has been in discussion with the first-class, Conservative-controlled Wiltshire Unitary Council. Will he encourage the fire service, which has also been negotiating with Dorset council, to seek to find areas of co-operation with Wiltshire council?
That is a matter for the local services. The consultation proposes requiring that those discussions take place, but it is up to them what they conclude.
(9 years, 1 month ago)
Commons ChamberMy hon. Friend is absolutely right; that is marvellous news and a reflection of the confidence in the economy of the UK and of the north-west. It also underlines the point that that is happening not only in our country’s big cities, important though they are, but in all parts of the north and, indeed, all parts of the country.
The Chancellor made it clear in the Budget that we have reached agreement with the 10 councils in Greater Manchester to devolve additional powers to them, beyond those powers that were devolved previously. A land commission will help to release public land to build new homes; fire services will be put under the control of the new mayor; and new powers will encourage further collaboration on children’s services and employment programmes. This historic process of devolution is now available to other cities and other parts of the country. The Chancellor made it clear that we are in active negotiations to devolve powers to the Sheffield city region, to Leeds, west Yorkshire and its partner authorities, and to the Liverpool city region. Each area will receive far-reaching devolved powers and resources in return for the election of a directly elected mayor. We are also in advanced negotiations with Cornwall on the first devolution for a county in this country.
This is just the start. The Cities and Local Government Devolution Bill, which is before the House of Lords, will enable us to negotiate with cities, towns and counties right across the country to give them the power that they need to galvanise their local economies. Such deals are in their local interest, but also in the national interest. At a time when limited public resources must be invested wisely, it is right to offer our cities, towns and counties a bigger share of the funding that is available. Why? Partly, it is because they have already demonstrated that they can make funding go further by managing it more creatively and attracting private sector investment.
I absolutely agree with my right hon. Friend about the importance of devolving power in the way that he describes. However, he will recall that it was a Conservative Government who abolished Avon, Humberside and Cleveland—those much-hated examples of regionalisation. Will he make a commitment today that, although devolution is a good thing, it will not become a substitute for regionalisation, and that if counties such as Wiltshire, for example, do not want it, we will not have to have it?
I can give that reassurance to my hon. Friend. That is the essential difference between the programme of devolution that we are offering and what has been attempted in the past. Every proposal will come from local people. I do not have the power, still less the inclination, to force local people into any arrangements other than those for which they are enthusiastic.
(9 years, 7 months ago)
Commons ChamberDoes my right hon. Friend agree that one of the political and constitutional reforms that would most benefit the people of Birmingham, as well as the people in North Wiltshire and elsewhere in England, would be the early introduction of English votes on English matters?
I do agree with my hon. Friend. It is right that we correct an anomaly. That should happen as well as the devolution of power within England, which this Government have been pioneering.
(10 years, 1 month ago)
Commons ChamberA disproportionate number of those not registered are among the 200,000 members of our armed services. Many of them are either not interested or are registered in places where they used to live or used to be based. What more can the Government do with the Ministry of Defence and our armed services to encourage our servicemen to register to vote and then, of course, actually to vote?
My hon. Friend makes an excellent point. One of the great advantages of online registration is that it is available to our serving servicemen and women around the world. It is a huge step forward that they do not need to rely on the post.
(10 years, 6 months ago)
Commons ChamberThe lessons that were to be learned from the experience in Northern Ireland have been learned. For example, the canvass that was not followed in Northern Ireland will be followed here in this country. The right hon. Gentleman rightly says that there is a positive duty on electoral registration officers to ensure that the register is complete. I take that very seriously, and I know that they do.
A unique opportunity will arise to improve the scope, depth and accuracy of the electoral register in the next couple of years as our servicemen and women return from Afghanistan and Germany. What new initiative will the Government take to ensure that when these personnel are settled in their seven super-garrisons across Britain they will be almost 100% registered to vote?
My hon. Friend makes a very important point. It is crucial that our armed forces serving the country overseas are part of the franchise. He will know that arrangements have been put in place to make sure that the need for registration—the renewal of registration —should happen only once every five years, rather than annually, to reflect the difficulties that are sometimes experienced in registering during active service.
Like the hon. Gentleman, I think that exactly the opposite is the case and that our towns, cities and communities across the country will prosper when they have the opportunity—and, indeed, the right—to do things their way, rather than the way Whitehall dictates.
The Minister’s determination to devolve political decision making to the lowest possible level is extremely welcome. Can he, for example, think of any circumstances under which he would dictate to a local city or local authority what flag to fly outside the town hall?
I cannot imagine such a thing. How a community chooses to represent itself and with what images and emblems seems to me the epitome of local choice.
I very much welcome the thrust of my right hon. Friend’s statement and the changes that he has made to the consultation paper. In particular, I welcome the fact that he has protected greenfield sites designated as green belt, sites of special scientific interest or areas of outstanding natural beauty, of which we have some in Wiltshire. Is he not also concerned about the 60% of green land in England that has no designation? What will he do under the framework to ensure that those areas have protection equal or similar to that of the green belt?
My hon. Friend will be pleased that the revised framework includes a recognition of the intrinsic value of the countryside, reflecting its beauty, whether or not it is designated nationally, so it will have that protection.
Of course they are not. At the moment, the regional strategies place a threat over communities, as the hon. Gentleman knows. He is a great localist, and he and I agree on this. I commend his blog to those on the Opposition Front Bench, who are chuntering away. There is a very persuasive piece on this matter under the title “The party I love is a party of ideals. That’s why I back David Miliband”. It states:
“I’ve always wanted to be in a party rooted in our diverse communities…nourished and reinvigorated by the ideas and aspirations that stem from our grass roots.”
We are giving the grass roots the right to determine the future of their green spaces, something for which I welcome his support.
Rural buffer zones and other planning designations protect areas such as my constituency from the westward expansion of Swindon. Does the Minister agree that, leaving aside the green belt, we have all kinds of ways in which to protect our countryside from excessive building?
My hon. Friend is right that development must be sustainable and must not compromise the ability of future generations to enjoy the environment that we have. The Government’s policy has always been clear in that regard.