Somerset Council: Funding and Governance

Ian Liddell-Grainger Excerpts

Tuesday 30th January 2024 Westminster Hall

[Mr Fysh]

I agree with my hon. Friend. He is absolutely right that it is important that responsibility is taken and that some of these decisions—or lack of decisions, should I say—are held up for scrutiny. It is not acceptable for residents, because of the lack of money, to face the potential loss of services that are really important to them, such as the Yeovil recreation centre and the tourist information centres in Cartgate and Taunton. Such services are essential for our communities, and it is not right that those non-statutory services should now be threatened.

It is also right that we protect non-statutory services generally by making sure that the council does not go into special measures, or is subject to a section 114 notice, which is the council version of a bankruptcy. The Minister will know well how that works. These are potentially very threatening to things that are not core or statutory council operations, and we do not want to see bus services being cancelled because a council goes bust. Residents may not know or necessarily care who is in charge and what is happening, but this is a serious situation. The reality is that the current administration has caused this issue and has not taken the decisions necessary to avoid it. Nevertheless, none of us wants to see that happen and to see these services go, because they are really important.

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

My hon. Friend is making very powerful points. I have been trying to work out how long it is, but I have worked with Bill Revans, the leader of the council, for over 25 years, and I have a great deal of respect for him. My hon. Friend is quite right that none of us wants the council to go into special measures. The Minister has been very kind to all of us, and he has given us an enormous amount of time on this. I am also grateful to him for the money he has given so far—I thank him very much.

Would my hon. Friend agree that the big trick with this will be our working together, regardless of our personal views or our political views, to make sure that this does not happen? Once, many years ago, I had the commissioners in to West Somerset Council, and it was a complete disaster. We lost our cohesion, and that council disappeared soon after. This is not something we should take lightly, and I ask my hon. Friend to dwell a little bit more on how we can help the Minister and Somerset Council to get what they want, which is to maintain services—schooling, education and children’s services—so that we do not have a complete disaster on our hands.

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[Mr Fysh]

Yeovil is one of those places that is dripping with potential. It has an incredible defence manufacturing industry, people, skills and development organisations. In my opinion, as someone who has been around the world looking at development and business opportunities for many years, I have never seen an environment that is so conducive to partnership working between business and local institutions to make things happen as there is at Yeovil College. Yeovil and the wider area need that vision from the council to back that up, to be the glue to make permissions happen more easily or to put in infrastructure, whatever is needed.

We need that vision from our local council, and that is what we are not getting right now. It is incredibly frustrating, for someone who wants to do the best to make that difference, with opportunities for people in our town, to find that at all stages it has been underwhelming, shall we say, for everybody dealing with the local council. I urge Ministers to think structurally about change, so that local councils have more accountable responsibility for bringing those things forward.

It is extraordinary, when looking around the world, to see how welcoming some other places are to investment, new thinking and different ways of doing things. When I proposed the idea about six or seven years ago of a new town development on the A303, to capitalise on the advantages of investing so much money in the A303 dualling, which we in Somerset fought so hard to get from the Government, we were met with a brick wall when talking to the council about executing those opportunities, and thinking about whether such things should be in the local plan, to excite local entrepreneurs. It has been such a frustrating process. We need to make sure we have well-equipped, local economic development operations of one kind or another, and to make sure we have good access to local and national incentives that attracts business to set up in different places.

[Mr Liddell-Grainger]

My hon. Friend is making a very powerful point. I think what he is getting around to is levelling up. Somerset has not done very well out of levelling up, and my hon. Friend and I have talked about this. I would say to the Minister that levelling up would help immeasurably. What we need to look at is the learning of skills, rural deprivation, helping young people get on to the job ladder in rural areas—that covers the whole of Somerset—and we certainly need to look at the way people are leaving school. Although we have Bridgwater, Taunton and Yeovil, there is not much in between, and therefore young people have not got those opportunities. I therefore make a plea through my hon. Friend to the Minister that we start talking about getting a levelling up bid for Somerset, where we could work with the council to get money to help the most vulnerable.

[Mr Fysh]

My hon. Friend makes a brilliant point. This is all about thinking of a plan for how we join up those urban and rural development opportunities and our skills development opportunities to make the most of what is an incredible area.

Somerset is a rural area, but I have never seen anything like it in my travels of the whole world—there is so much energy and sophistication in what is a rural environment. Yeovilton is in the north of my constituency —it is the home of the Fleet Air Arm, and the site of one of its core operations. We have the manufacturing cluster around Yeovil, and indeed we have north Dorset, which is second to none in the world in its defence manufacturing abilities. We need to support that—it means people come from all over the world to work and raise their families there; it is not an average rural area by any stretch of the imagination. We need to build on that; it is a massive opportunity for the country in exports, high-value engineering jobs, and all the things that we as a nation are supposed to be trying to encourage.

We need to support our local authorities and ensure they are doing the right thing. We need to ensure they are making the right decisions, at the right time, to be able to save money where it is required, and that they are also thinking about ways of making money where it is required. That should not just be through some fly-by-night plan to invest in commercial real estate; local authorities have no ability to judge if such plans are a good idea, and that is something we need be careful they do not do. However, those core activities of working with private industry to make sure the incentives and skills are there for business is the way forward—that is the way to finance any local authority.

There can be endless arguments about who gave what money to who and so on, but unless that core business of getting growth going in an area is there, with proper support and incentives from local and national government, it will be very hard to compete with some other parts of the world that are doing a brilliant job of it. They are rolling out the red carpet to welcome people to those areas, and they are giving massive incentives: 40% or 50% capital incentives are being paid up front to people who want to start businesses and invest in renewable energy generation—or whatever it is.

There are very serious things going on out there, and we need to think about how we match that. This idea that we can just put our fingers in our ears and pretend it is not happening is for the birds. These are real-time decisions being made now that people are having to think about, and we need to make sure that we are on the same page and we are competitive. Somerset is an amazing place with amazing opportunities, and we need to focus on how we can capitalise on those. They could be an absolute driver of economic performance, and the realisation of the aspirations of people in all income brackets across our country. I hope the House will urgently consider this topic.

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[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

I always find—my hon. Friend the Member for Yeovil (Mr Fysh), the Minister and you, Mr Pritchard, all know this—that the best speeches in this place are the ones that you write yourself, and not the ones you deliver in parrot fashion after they have been written by someone else.

As my hon. Friend said, in the last few months we have worked together to try to solve this problem. Let us look back at the history of the situation. I will gently say that it was going on under the coalition Government. We made representations then and I do not remember being completely supported by David Laws, David Heath, Tessa Munt or—I have forgotten now, but I think that is about it. That is a problem.

It is easy to cast aspersions, but let us look at the reality. I am very grateful to the Minister; I must give credit where credit is due. He has worked very hard to make sure that he gives the time that is needed to all these councils to get this situation sorted. The point was made that £5 million is very little. Yes, of course it is, but it is a start.

I do not think it is any secret that tomorrow the Minister is meeting the leader of Somerset Council, Bill Revans, and his team to talk about the next phase. My conversations with the Minister—I do not know how many there have been, but there have been an awful lot—have always been constructive and helpful. We are in a crisis—we must be absolutely frank about that.

I absolutely abhor having in commissioners. Having suffered that, as I said in my intervention on my hon. Friend the Member for Yeovil, who was very noble about it, I know it is an absolute disaster. If they come in to Somerset, I can tell hon. Members exactly what will happen. They will shut the recycling centres, stop the buses and pull back on the funding for roads, for the most vulnerable and for many others, and the money we give to colleges such as Yeovil, Bridgwater & Taunton, and Strode just will not happen. No matter what we do—parliamentarians, councillors or anyone else; parishes, towns or whatever—it will make no difference at all.

The problem we have is that councils such as Taunton, I think Yeovil, Minehead and others are raising council taxes way out of proportion with what they need to do. I am worried that they will raise them so high to take on services that the county has been running up to now, and they will not be able to cope. In all my 23 years in this place, I have seen when councils have taken on assets, and after a while they just cannot cope. That is partly down to the people they have, partly down to the rises in costs that we all have, and partly down to the fact that these things are damned complicated, and that goes not just go for the loos, but for much more.

We really must talk with the Minister about how we make sure that when assets are given to other councils—mainly town councils, because it is more difficult to do for parishes—they are able to deal with those assets in the future. Taunton is to have a 200% increase in council tax, and that is huge, but it wants to take on a lot of things, and Taunton covers the whole of Taunton—not a bit of it, but the whole thing. I am not going to cast aspersions about whether this is right or wrong; I am just making the point that the assets that go over to such councils still have to be managed.

The other issue I have is about the superb colleges we have, and my hon. Friend the Member for Yeovil and I have talked about Yeovil College, and Bridgwater & Taunton College. We have come an enormous way in Bridgwater, and these colleges are superb. When I first came in all those years ago—and let us be honest—they were not as good as they are now. There has been a huge amount of work by the teams in both those colleges, and we have created proper colleges for Somerset. The debate goes on, and the conversations between Bridgwater & Taunton, Strode and Yeovil are brilliant. They are really looking at how we move on in the future.

Another point, and the Minister must be aware of this, is that not only are we building the biggest infrastructure project in Europe, which is Hinkley Point, but we are about to start building the Gravity site. Again, my hon. Friend the Member for Yeovil has been very helpful, with his wonderful workforce at Westland and so on. This is a 423 acre, 11 million square foot battery factory for Jaguar Land Rover under the Tata Group. It is a phenomenal investment in the west country, with 9,500 jobs, and it is crucial to the future of our beautiful county.

In the time I have left as an MP—God willing, and the electorate willing, I will still be an MP, but not for Bridgwater—I will be absolutely dedicated to getting this to the stage where we have the infrastructure, but we need a functioning council. We have to have that. It is going to be difficult for the council, because it has to put in some money, and we will have massive infrastructure costs. I do not want to have to come back to the Government in however long it is—in the next six months —and say, “Look, we haven’t got the money to put in the roads, the railway and the college campuses for Bridgwater & Taunton and for Yeovil.” We must get this sorted.

In the short time I have left, I say to the Minister that this is going to be a partnership. As I have said, I have worked with Bill Revans for a very long time, and I have enormous respect for him. He is trooping on, and not perhaps in the best circumstances, as we all know. He is still there fighting his corner, as he has long done—he stood against Tom King in 1992. He is a long-term, committed politician for whom I have a great deal of respect; as hon. Members know, that is not always the case.

We have to work together to get the funding we need to stabilise the situation, and this cannot wait until after the election. I have no idea about the policy of the Labour party—I genuinely do not know—but I know the hon. Member for Oldham West and Royton (Jim McMahon) will be sympathetic because I was in opposition when I came in and I will probably be in opposition when I go out. However, when I had issues when Tony Blair was Prime Minister, they were listened to, and I can only say that I am very grateful for everything, but we need to do this now, Prime Minister—

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

I am not the Prime Minister.

[Mr Liddell-Grainger]

Yes, I know. I do apologise. Minister, we need to sort this now, and that conversation is crucial. We need to keep this going as much as we can. We need to take it forward in the constructive way in which it has been dealt with so far. I am one of the worst offenders in this place for taking it to the lowest common denominator and attacking everybody, but this is a time when we cannot do that. There are too many vulnerable people whose futures and wellbeing are at stake, so I say to the Minister: please, just keep talking to us.

Minister, you have been brilliant. I cannot fault you or the Secretary of State. I cannot fault the way in which you have dealt with Bill and his team, Duncan Sharkey and everybody in Somerset. At every meeting I have had, we have talked about how we have work to do, and we will do it. We have discussed what needs to be done. I am conveying that to Bill, the Minister will convey that tomorrow, and we will work on it. In the next few months we have to come up with a formula that safeguards those vulnerable people. My constituency covers Exmoor. The problems we face with things like social mobility and access in one of the most rural parts of England will be devastating if we cannot come to an agreement.

Minister, we are here to do the best for our constituents; we always have been. That is why you do it, why I do it, why my hon. Friend the Member for Yeovil does it, and why everyone else does it. If you can come halfway, we can come the other half. That will be most important. You could use Somerset as a guinea pig in order to come up with a formula that will get this working, so that we can work with you and land what we need to do. I am meeting the Chancellor tomorrow. I am going to put the plea to him and ask him to be generous—

[Mark Pritchard (in the Chair)]

Order. Forgive me—

[Mr Liddell-Grainger]

Thank you very much, Mr Pritchard.

[Mark Pritchard (in the Chair)]

No, I am not curtailing the hon. Gentleman’s speech, if he has anything more to contribute. I just gently remind him that he should address his remarks through the Chair rather than speaking directly to the Minister. I have let it go a bit, but he should speak through the Chair.

[Mr Liddell-Grainger]

I am so sorry, Mr Pritchard. After all these years, I should know better. I do apologise.

That partnership will be crucial. It matters more than anything. I look forward to working with the Minister on this.