Localism Bill

Debate between Hazel Blears and Baroness Bray of Coln

Monday 17th January 2011 Commons Chamber

[Hazel Blears]

In a moment.

We are setting out for the worst of all possible worlds. We will raise expectations and then set people up to fail, thus setting this whole community empowerment agenda back years and years; I think there will be an awful lot of disappointed people. If we look at the pubs support package, we see now that no support is available. A community in my constituency wants to take over the Woolpack in Salford. These great local people need help with a business plan, finance and mentoring, but no support is available from this Government to enable them to take over that pub.

[Angie Bray]

rose—

[Hazel Blears]

I will not give way.

I set out three tests last October, saying that if the Government met them, their localism and empowerment agenda would have my support. Those tests related to funding; having a proper framework for local government; and fairness. On funding, the Government have failed miserably. My local council faces cuts of £47 million, and 15% of those cuts are to come in the first year. Manchester city council faces cuts of £100 million, with 25% in the first year. Voluntary sector organisations face cuts of upwards of £3 billion, with a paltry £100 million transition fund. Whether for local government, voluntary organisations or community groups, the Government have failed entirely on funding.

My second test was about having a proper framework and a long-term partnership with community groups. What I have seen is councils in a headlong rush to divest themselves of responsibility, and they are dealing with big national organisations, not building the small community groups that really want to bid on this agenda. For example, the big national framework contracts for the Ministry of Justice and the Department for Work and Pensions are going not to small social enterprises or small local organisations but to big national companies. The people who are getting the DWP contracts in Greater Manchester are based in Leeds, Birmingham and Newcastle—so much for growing the small local sector.

My third test was about fairness. I am genuinely horrified at the unfairness of the cuts that have been put in place. They are particularly directed at the poorest neighbourhoods—the people who are eligible for area-based grant. They have seen those grants slashed completely, which is why the poorest areas have fared the worst. What is really needed on this agenda is funds. I moved a ten-minute rule Bill just a couple of weeks ago, proposing that instead of paying themselves bonuses bankers should enter into a long-term relationship with community groups to give them not only funding, but business expertise, support, mentoring and back-up. Again, I ask the Government whether they are prepared to support those measures. We need a commitment to true social enterprise and we need to ensure—