(5 months, 4 weeks ago)
Commons ChamberThe Government continue to keep the ministerial code under review. The Prime Minister of the day has to be able to determine who the Ministers will be in the Government that he leads on behalf of His Majesty. That is an important constitutional principle, but the Prime Minister will not hesitate to take action if there have been inappropriate breaches. On the accountability of the Foreign Secretary, discussions continue on the best way to ensure that this House holds him to account, in the same way that he is already accountable to, for example, Select Committees.
In July 2019, the Minister’s Department issued new guidance effectively outlawing gagging clauses across Government Departments. Does the Department have any plans to extend that to local authorities? I am sure that the Minister would, like me, be appalled that Labour-run Rossendale Borough Council has issued a gagging clause against its elected representatives, backed up by a threat of legal proceedings, because it wants to cover up a £12 million fraud, in which Labour councillors may have been complicit, and about which they certainly have questions to answer.
My right hon. Friend rightly raises some very concerning allegations. So-called gagging orders should not be used in that way, and I undertake to look into the matter on his behalf.
(10 months, 2 weeks ago)
Commons ChamberIt is not right for us to prescribe how another country can best exercise its lawful right—indeed, it is a duty—to self-defence, but as a friend we will continue to call on Israel to take every precaution to avoid harming civilians.
On Saturday, I met in Rawtenstall representatives of the British Muslim and British Palestinian communities of east Lancashire. They were united in one voice condemning the appalling actions of Hamas in the barbarous murder of Jewish people. They will have been heartened to hear the Prime Minister say that we stand with both the British Muslim community and the British Jewish community at this very difficult time. They want to see Israel comply with international law; they want humanitarian corridors to remain open to enable innocent Gazans to escape. How will the deployment of the Royal Navy help to ensure that that happens?
I know that this is important to my right hon. Friend. Like him, we recognise that this is a moment of anguish for British Muslim communities, who are appalled by the actions of Hamas but fearful of the response. As I said, we mourn the loss of every innocent life—of the civilians of every faith and nationality who have been killed. Our Navy assets can help, as I have said, to ensure that illegal arms shipments do not find their way to people such as Hezbollah. Also, the assets that we are deploying next week will be there as a contingency and can provide humanitarian assistance if and as required, which will be a valuable contribution to the role we play.
(2 years, 1 month ago)
Commons ChamberI can confirm that we are committed to funding two new green freeports in Scotland to the tune of £52 million. That would not be possible, of course, if the SNP got its way and we returned to the EU.
I congratulate my right hon. Friend on his work to tackle regional inequality in this country through his levelling-up agenda. As he rightly reflects with pride this summer on the work of both himself and his Government, will he urge all candidates in the leadership election and all colleagues in the House further to drive forward the levelling-up agenda to tackle inequality wherever it is found in the United Kingdom?
I heartily agree with my right hon. Friend. It is not just inequality; it is inequality of opportunity, and that is what levelling up addresses.
(2 years, 4 months ago)
Commons ChamberI repeat what I have said earlier. I disagree profoundly with what the right hon. Gentleman has just said, but I repeat my apology to the House and to the country.
The people of Rossendale and Darwen will have weighed the words of the Prime Minister carefully today and will, like me, feel that it is a contrite and wholehearted apology. They will also be looking at the action of the Prime Minister in Ukraine. Will he consider putting Britain at the forefront of a new Marshall plan to rebuild Ukraine after Putin has been defeated, and fund this, in part, from the assets that the British state has confiscated from Russian oligarchs?
I thank my right hon. Friend for his excellent suggestion, which is one that the UK Government are already pursuing. In my conversations with President Zelensky, we discussed exactly how the supporters and friends of Ukraine around the world can help to rebuild that beautiful country when the conflict is over.
(2 years, 9 months ago)
Commons ChamberI will let you get the benefit of the applause, Mr Speaker.
On a recent trip out with officers from the Waterfoot police station in Rawtenstall, one of the challenges they talked about in getting cases to court is that the Crown Prosecution Service insists that full disclosure is done before charge. Will my hon. Friend go away and look at that? It is currently warranted officers doing that disclosure, when it could easily be a civilianised job. Will he agree to speak to the Crown Prosecution Service and his colleagues in the Home Office to ensure that Lancashire constabulary—as you know, Mr Speaker, the finest police officers in our United Kingdom—can be out getting criminals and not doing paperwork?
(4 years, 6 months ago)
Commons ChamberI hope you will bear with me a moment, Mr Speaker, because this is the first time that I have had the opportunity to speak in a debate with you in the Chair as Speaker. As the MP for an adjoining constituency and a fellow Lancastrian, I congratulate you on the amazing start you have made as Speaker. You have restored gravitas to the office of Speaker and you are doing an excellent job.
I beg to move an amendment, to leave out from “House” to the end of the Question and add:
“welcomes the Government’s provisional local government finance settlement, which will deliver the biggest year-on-year real terms increase in councils’ spending power for a decade; recognises the pressures on adult and children’s social care as well as critical local government services, and welcomes the additional £1.5 billion available for social care in 2020-21; notes that the Government has listened to calls for a simpler, up-to-date, evidence based funding formula and has committed to consult on all aspects of the formula review in spring 2020; further welcomes the Government’s ambition to empower communities and level up local powers through a future Devolution White Paper; and welcomes the Government’s progress on this agenda already with the £3.6bn Towns Fund and eight Devolution Deals now agreed.”.
As we entered a new decade, this country voted emphatically for a new Government and a new approach. People discarded the politics of division and deadlock that had beset the previous Parliament for so many years. It was the people who gave a new mandate to my right hon. Friend the Prime Minister to drive forward his vision for our nation—a vision that will see communities levelled up and opportunity spread equally throughout the country, just as talent is already spread. We will level up every single nation of the United Kingdom and drive forward our Government’s agenda.
What have we heard today from the Labour party and the Opposition spokesman? They have learned nothing from their December drubbing—nothing from the people of Redcar in the north-east, nothing from the people of Heywood and Middleton in Greater Manchester and nothing from the people of the Don Valley in Yorkshire. Each of those areas, which had been Labour—[Interruption.] I know that Labour Members do not want to talk about the general election, which was the worst Labour performance for a generation, but we have a mandate and I intend to set out what that mandate means, in line with our amendment. Each of those areas, which had been Labour for a generation, rejected the politics that we heard from the Opposition today.
Let us not forget—although I bet he wishes we would—that the hon. Member for Denton and Reddish (Andrew Gwynne) was the general election campaign co-ordinator for the Labour party. Like a Japanese soldier emerging out of the jungle decades after they have lost the battle, he has chosen to return to Labour’s failed policies of division and deadlock. We heard him pit urban areas against rural areas, towns against cities and local government against national Government. It is absolutely clear that only the Conservative party—
I will give way in a moment.
It is absolutely clear that only the Conservative party has a mandate to unite our nation as we move forward from a decade of recovery to a decade of renewal.
I am really grateful to the right hon. Gentleman for giving way. Can he let me know where the Secretary of State is while we are discussing local government finance? I am grateful to see the right hon. Gentleman in his place, giving us a speech, but I would quite like to hear from the organ grinder what is going to happen with local government finance.
Well, I am not the organ grinder, as she has pointed out, so I must be the monkey. We have a broad team, and given that a lot of the claims made by the hon. Member for Denton and Reddish relate directly to the north of England, I think that as the Minister for the Northern Powerhouse I am the most appropriate Minister to respond to this debate.
My right hon. Friend’s mandate extends to God’s own county of Hampshire, where we are very much looking forward to the fair funding review on the grounds that we get to spend £1,650 per person, but we look north to the local authorities that have been enumerated today that have an additional £500 per person. We spend—
Order. Sir Desmond, you are usually very good and ask the shortest of questions and make the briefest of interventions. I do not know what has gone wrong but I am sure the Minister will have a grasp of what you were saying.
As my right hon. Friend knows, the fair funding review is under development, so we are unable to say today whether Hampshire will benefit more than any other area of the country, but his point about having a fair funding review that makes sure that we accurately reflect need throughout the country is absolutely right.
I am confused on that exact point. The new funding formula has not been published, yet the Labour Front-Bench team claim to know exactly what it is going to be. They also claim that the shires are going to benefit, yet Leicestershire and Rutland are the worst funded in the country, so the idea that the shires will do best out of this is most inaccurate. Does my right hon. Friend agree?
I do agree. I wonder how much attention the hon. Member for Denton and Reddish pays to his horoscope, because that prediction that has as much accuracy as the figures he has gone through today. Of course, the LGA itself said—in what was an extraordinary intervention from its chairman—that the figures were based on an old formula. It acknowledged that a new formula was being worked on and that therefore no further predictions could be made from those figures.
I am grateful to my right hon. Friend for giving way; the Opposition spokesman refused seven times.
Gloucester City Council provisionally gets 1.4%, compared with 6.3% for the country as a whole and 3.4% for all second-tier councils. While my right hon. Friend is doing the consultation, will he look closely at whether second-tier councils, particularly city councils with small amounts of space with which to benefit from the new homes bonus, could be given special consideration? Also, could he raise the council tax referendum limit from 2% to 3%? That would help us to raise funds locally.
I will get on shortly to the issue of council tax referendum limits. We continue to engage with colleagues across our local government family, on both sides of the political divide. If we have not engaged directly with Gloucester yet, I will ensure that we do so as part of our discussions.
Building on the mandate given in December to my right hon. Friend the Prime Minister, I want to set out how we will unite and level up our nation. We will devolve more power, money and influence back to communities across England. We will restore opportunity to our towns through our £3.6 billion towns fund, and we will work with every single local authority to make sure that they are the engines for economic growth in their community. This will be supported by the most generous financial settlement for a decade, while always ensuring that they have the resources to support the most vulnerable in society.
This Government are proudly the father and mother of English devolution to our regions. In the past three years, we have seen the creation of powerful metro Mayors in Liverpool, Cambridgeshire and Peterborough, Sheffield, Manchester, Newcastle North of Tyne, the West of England, the West Midlands and Tees Valley. Together, those mayoral combined authorities have access to £6.35 billion of investment funding, more than £1 billion of the transforming cities fund, and £1.5 billion of the adult education budget.
We understand, however, that it is not possible to measure how well devolution is working simply by looking at how much money is being received. The real power of devolution comes through putting power back in the hands of local people, and that is why devolution works.
I am fully supportive—as we were during the coalition—of the Government’s plans to devolve power to the regions of England and to local authorities. Does the right hon. Gentleman agree, though, that if this is about local people making local decisions, they should not be forced to accept a Mayor or, if they are a rural community, a particular urban-type structure in order to get those powers?
I am sure the hon. Gentleman will welcome the recent discussions that have taken place with local authority leaders across Cumbria. I know that he has influence over his own local authorities, and I am heartened by the open-hearted and open-handed way in which they have approached those discussions. My right hon. Friend the Prime Minister has been clear that we should seek mayoral combined authorities across the entirety of the north of England. It is my view that if we want to truly empower communities, a powerful, locally elected, singularly accountable individual is the best way of doing it. I hope that we will shortly be able to progress further devolution deals and discussions across Cumbria.
As I have said, devolution does work. It is already paying dividends, with funding and metro Mayors delivering programmes that local people want. The hon. Member for Denton and Reddish might want to listen to this. I am sure that the completion of the A6 relief road to Manchester airport in Greater Manchester has assisted him and his constituents to get around the north-west of England. I know it helps me. It was done by the Labour Mayor for Greater Manchester, Andy Burnham.
In Liverpool, we are supporting new rolling stock on Merseyrail. That is important to me—I went to school on those trains and did not know that 35 years later people would be going to school on the same trains. There is a new train maintenance and technology training academy and the largest rolling stock modernisation facility in the country, creating hundreds of new high-quality, high-skilled jobs, in co-operation and collaboration with Steve Rotheram, the Labour Mayor of Liverpool. In the west midlands, the extraordinary Andy Street is investing £207 million to extend the West Midlands Metro system, re-opening railway lines and stations. That is all being done by metro Mayors.
Of course, those decisions could have been made in Whitehall but, I think as everyone knows, the process would have been slower, they would not necessarily have reflected local priorities, and crucially, picking up on the hon. Gentleman’s recent comments, they would have lacked the local democratic legitimacy of decisions made by single accountable elected individuals. It is precisely because devolution works that we intend to go further and faster. We will unleash the potential of all of our regions, delivering on the priorities of this people’s Government to level up everywhere.
May I begin by thanking the Minister for his continued support for devolution to the Sheffield city region and south Yorkshire? I think we have just about got there. That is very welcome.
The Select Committee on Housing, Communities and Local Government has in the past commented on the fact that, so far, devolution has been about powers being transferred to mayoral combined authorities in certain areas. Initially, the Government were going to allow 100% business rate retention, which would have meant more money and more powers to local government across the country. Will the Government have another look at that proposal, to see whether all councils should now benefit from devolved powers?
I am very pleased that we are making such good progress in south Yorkshire. The hon. Gentleman and I, along with many colleagues across the House, welcome that. He is correct to say that mayoral combined authorities have retained their 100% business rate retention for next year. Following the successful pilots, including in areas such as Lancashire—the hon. Member for Blackburn (Kate Hollern) and I have benefited from that—any further business rate retention will be part of the spending review process.
Devolution is particularly pertinent to areas such as south Yorkshire. Every deal so far has been bespoke, but as part of our ambition to level up powers we have written to every existing regional Mayor and asked them to take on new powers so that they can truly drive the ambition for the region. I am delighted to tell the House that one of the first to respond was Ben Houchen, the Mayor for Tees Valley. Not only has he made the Tees fly again, by saving Tees Valley airport; he is also making his economy fly again, by working with the Government on a suite of new powers to unleash the full potential of Teesside and everyone who lives there. In addition, the Government are talking to Cumbria, West Yorkshire, East Riding, Hull, County Durham and Lancashire about their ambitions for change in their areas.
Already, 50% of communities in the north have, to coin a phrase, taken back control through devolution. More areas want to be part of our devolution revolution, and we will ensure that they get that opportunity. Later this year, the Government will publish their devolution White Paper, setting out the Government’s ambition for full devolution across England. Through this White Paper, we will work with everyone in our local government family to ensure that they are truly empowered to be partners in growth.
As this Government unite and level up cities, towns and coastal and rural areas across our country, we acknowledge that our town centres are absolutely at the heart of a growing economy. They are the ground on which local jobs are created and small businesses are nurtured, and they inject billions of pounds into the local economy. That is why, through our £3.6 billion town deal fund, we are directly intervening in local communities. We are working with local areas and councils on more than 200 investment plans that have the potential to transform their economies.
The local Member of Parliament is able to sit on the town deal board in each and every one of our town deal areas. That ensures that Members of Parliament from across this House, whichever party they represent, have the opportunity to be an active part of the conversation in driving local growth in their communities. This is a new approach that I cannot recall previous Governments taking. It is about drawing on the talents of every single Member of this House with a town deal.
I now want to briefly mention the hon. Member for St Helens North (Conor McGinn)—this will probably ruin his career. He attended his first town board meeting on 23 January. He then approached me just outside the Division Lobby, fizzing with enthusiasm.
On a point of order, Mr Speaker. I might be wrong but I thought this debate was entitled “Local Government Finance”. My hon. Friend the Member for Denton and Reddish (Andrew Gwynne) on the Front Bench made a very good speech about finance, but we have heard very little about it from the Minister, who has talked instead about devolution and other things to do with local government. Could I have some advice, please?
I think if we look in detail at both speeches, we will see that they are around the finance package and the delivery of different projects. I think there is an interconnection there, but I am sure that if we did drift too far the Minister would come straight back into line. For the moment, I am more than happy.
I suggest to the right hon. Member for North Durham (Mr Jones) that he read page 8 of the Order Paper. The Government’s amendment says that the Government will set out the devolution White Paper and mentions
“the £3.6bn Towns Fund and eight Devolution Deals now agreed.”
He is a very experienced Member of this House, so I am surprised that he has not yet learned to read the Order Paper in the morning.
Order. The right hon. Member for North Durham (Mr Jones) has done exactly what he wanted to, Minister, which was to get you riled. That is why his experience is best ignored at times.
Well, we are having fun.
As I was saying, the hon. Member for St Helens North approached me outside the Division Lobby, fizzing with excitement. He is embedded on his town board, and is putting aside political differences to work closely with this Government, challenging us on our towns fund and ensuring that he can deliver real benefits for his community.
It is only because this Government had the determination to deliver the will of the British people and we have now left the European Union that we can seize the opportunities that lie ahead. We will drive devolution, and level up our communities and nations, while at the same time beginning an era of new investment in public services. Back in 2010 we were forced to make some difficult decisions, but we had inherited the highest deficit in the nation’s history and an economy struggling to recover from the worst recession in 70 years. The public purse was overstretched, the overdraft limit had been reached and the credit card was maxed out. In truth, there was no money left and the economy was on the brink. It is exactly because we took those difficult decisions that we can now bring forward our ambitious plans and aims for local government finance for the months and years ahead. I am determined that local government will receive the resources it needs to support its communities, and continue to innovate and deliver cost-effective services for its residents. This year will see a spending review in which we will move forward with a longer-term settlement, providing the sector with the certainty and confidence it needs to properly plan for the future.
As the shadow Secretary of State mentioned, we also plan to review the formula used to distribute money between local authorities in order to ensure that we can use the resources in the most efficient and effective way. I will say more about that later. However, I briefly want to address why the Government brought forward a one-year funding settlement for local government. In advance of leaving the European Union, it was right that we sought rapidly and urgently to bring stability and certainty to our local government sector. This meant carrying out a one-year spending review at record pace, followed by a post-election local government finance settlement, which we published as soon as we could after the election. Building on that settlement, we now have a series of bold and ambitious plans for a local government finance settlement in the financial year 2020-21 that has been devised in close collaboration with colleagues across the local government sector.
Under these proposals, core spending power for local authorities in England will increase from £46.2 billion to £49.1 billion in 2020-21. This equates to a 6.3% increase in cash terms, or a 4.4% increase in real terms—the largest increase for a decade. The shadow Secretary of State spoke at some length about adult social care, and this Government are steadfast in our commitment to protecting the millions of people who rely upon those essential services. That is why we propose to inject an additional £1 billion of new funding into the social care grant, with £150 million used to equalise the distributional impact of the adult social care precept, and continue the £410 million of the previous year’s allocations. Overall, that means that local authorities will have access to £6 billion across adult and children’s social care next year. However, our commitment to boosting social care and investment spans much further than just that one-year settlement, which is why we pledged to maintain the £1 billion of new funding to the social care grant for the duration of this Parliament, enabling local authorities to continue with long-term planning and driving improvements in the essential core services.
It was deeply irresponsible for the shadow Secretary of State to scaremonger about the figures from the LGA. He knows that those figures are at best an estimate and that they are based on old formulas, including the old area cost adjustment, which we are changing. If we thought it worked, we would not be doing the fairer funding review, so he should think on before he scares some of the most vulnerable people in society with stories about cuts and figures that are not based on the true formula.
The shadow Secretary of State claims to be a great champion of local government, so I will give him the opportunity to intervene on me in a moment. I wonder whether he can recall what he was doing on the evening of 10 February 2016—would he like to intervene? He cannot remember. I can remember. I was in the Aye Lobby with my colleagues, voting for the social care precept, enabling local councils to prioritise social care. He was in the No Lobby, voting against more money going to councils to finance social care. That one measure alone has raised an estimated £7 billion for adult social care since it was introduced. Perhaps when he is lecturing Government Members about support for adult social care, he should recall what he was doing when local authorities and the vulnerable in society needed him; he was pursuing narrow, party political lines and voting against the social care precept.
If we are throwing accusations about, perhaps the Minister can tell me what the social care funding gap in Tameside Metropolitan Borough Council is this year, and how much the social care levy raises.
I am not throwing accusations around. I suggest the hon. Gentleman checks Hansard because whatever the funding gap may be, it would have been much bigger if he and his colleagues had got their way. He voted against more funding for social care, and I suggest he remembers that when he is giving out the lectures.
In addition to helping councils address the complexity around the delivery of social care, I recognise that councils in rural communities face some unique challenges. The services they provide are often delivered over a long distance, to disparate communities. That is why we are proposing to continue the rural services delivery grant at £81 million—the highest ever to date. This funding will continue to support residents in rural counties— including Labour-controlled Cumbria, which is a beneficiary of it and which I am sure welcomes the funding, given the challenges it faces around rurality—and people who live far from local services so rely on them being delivered by their council.
We have consulted widely on negative revenue support grant, and have concluded that eliminating negative RSG through business rates income, at a cost of £152.9 million, is the right thing to do. This will deliver on the Government’s long-term commitment to the principle of sustainable growth incentives in the funding settlement.
The new homes bonus is a very important part of how we fund local councils. It rewards councils that do the right thing by building new houses to help tackle our housing crisis. We want to ensure that they continue to be incentivised, which is why we will provide £907 million of new homes bonus allocations this year.
Council tax for the average dwelling went up by 112% under the last Labour Government. That’s right—Labour doubled people’s local council tax. Of course, in Wales they have managed to triple it, but they only doubled it here in England. That is why this Government have made a commitment to give local residents the final say on excessive council tax increases. We are determined, in a way that no Labour Government ever were, to protect the interests of hard-working taxpayers while granting local authorities the flexibility they need to raise resources to meet their needs. For this reason, we propose to continue with the council tax referendum limits.
If we double the council tax that is paid by local people, then I will start to take lectures from the hon. Gentleman about what we should do. He should remember his own record. He entered Parliament in 2005 and was here when all this was happening; perhaps he would like to recall that.
Taken as a whole, this protection will mean that we see the lowest average council tax rise since 2016, ensuring that taxpayers continue to receive the breadth and quality of services that they enjoy today without, as they had under former Labour Administrations, the imposition of crippling tax hikes and rocketing monthly bills.
As we look towards future settlements, the Government intend to conduct a full multi-year spending review. We are already putting more money in this year, but the spending review will give us the opportunity once again to look at pressures in the round and provide councils with the certainty they need. We have committed to a fundamental review of business rates. As part of that work, we will need to consider carefully the link between the review and retention by local councils. We will of course continue to discuss that and the future direction with our partners in local authorities.
Everyone in this House wants to refresh the way we allocate funding, so that it reflects the most up-to-date needs and resources of local areas. That is key work to achieve the agenda set out by the Prime Minister, because dealing with local government finance is part of levelling up our entire country. We have made good progress with the review of relative needs and resources—or the fair funding review, as it is known—and I want to take this opportunity to thank Members on both sides of the House, some of whom have made constructive contributions to the process. The direction of the review has been welcomed by many, including many in local government, but now we have to deliver a sustainable approach, and we look forward to continuing to work with the whole sector.
The review is a large and complex project. Expectations are high on all sides, which is why we are committed to sharing emerging results with local government as soon as possible. We plan to share significant elements for technical discussions in the coming weeks and months. That will include formulas in the review that represent a majority of local government spending. However, I should remind Members that needs formulas represent only a small aspect of the review. As the LGA pointed out, it is simply not possible to predict the overall outcome for individual local authorities or groups of authorities and therefore the extent to which funding may move between authorities. Of course, we will need to consider the review in the context of the outcome of the planned spending review. We look forward to working with colleagues and sharing those results with the sector and the House shortly. I also look forward to updating the House once we have finalised proposals for our new and exciting settlement for local government. Finally—
I have more—I can keep going.
I welcome the subject of today’s debate, because it gives us an opportunity to look at the exciting programme that this Government have for devolution, levelling up and supporting our towns. However, it would be remiss of any Member not to take this opportunity to thank everyone who works in local government. I often feel that being a councillor is a thankless task, and I want to ensure that they hear a clear message from this House today that, on a cross-party basis, we thank them and support them in their work. Of course, councils are not just run by locally elected politicians. They have fantastic officers who support the work of the council and local communities. [Interruption.] While the Labour party seems to think it is funny that I want to thank people who work in local authorities for their work, Conservative Members think that it is important to do so.
I will not; I am concluding.
Let me finish by thanking our councillors and our officers, as well as the Opposition for calling this important debate and giving us an opportunity to discuss the Government’s exciting agenda.
I will give way in a minute.
They don’t, because, for example, in County Durham over 50% of our properties are in band A, so, no matter how much we put up the council tax, we will not—unlike more affluent areas, with larger numbers of Ds, Cs and even Gs in some cases—be able to bridge the gap that has resulted from the withdrawal of core funding.
Yes, but I have to say that in the hon. Gentleman’s area, North Yorkshire, the ability to raise council taxes is a lot better than in County Durham and others. I am not talking about a metropolitan council; I am talking about County Durham. In Surrey—Woking—and other areas in the south, the core spending has not been reduced at all. So the hon. Gentleman should be shouting from the rooftops about the unfairness of the current formula.
The other issue—
I will give way in a minute; I know the Minister gets very excited when I make speeches.
The other issue is the ability of local councils to raise finance through, for example, the distribution of business rates. To be fair to County Durham, it is trying some ambitious plans for economic development to get business rates up, but Durham’s ability to raise extra funding through business activity is not at all comparable with that of, for example, the City of Westminster.
I just wonder if I could recommend to the right hon. Gentleman’s reading the Government’s December 2018 fairer funding review consultation, in which we specifically deal with the point he has raised about differing council tax bases. So it is not correct to say that this is not dealt with in the fairer funding review. The relevant paragraph is 3.2.2 on page 50 of the December 2018 consultation document.
The Minister says that, but then he actually has a situation such as the following one, based on the funding figures put out at the moment—I accept we have not had the final decision. Under the formula for public health funding—and I supported public health funding going back to local councils—County Durham was forecast to lose £19 million, or 35% of its budget, whereas Surrey will increase its budget by £14 million. I am sorry, but that just cannot be right when comparing the two areas in terms of deprivation and health needs. The Minister may say what he likes, but in the past 10 years that has been the direction of travel. If he levels it up and changes it suddenly as Northern Powerhouse Minister, he will have my 100% support, but I doubt whether he will be able to do that. The promises that he and others have made to northern councils are going to be very limited.
On the point about need, there are two areas with which all local councils have been struggling—adult social care and looked-after children. Again, to work on the basis that need for all councils in those areas is the same is to start from the wrong premise. For example, since 2010 demand for children’s social care has increased by £7.2 billion but central Government support has halved. That has pushed demand on to local councils, which have had to make very difficult decisions. As my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) said, these services are not optional—they must be provided, by law. If we look at the national figures, in 2010, 54 children per 10,000 of population were in social care. By 2019, that had risen to 65—an increase of 20%. If we look at the figures for the north-east, the figure is 101 children in care per 10,000 of population. In the south-east of England, the figure is 53, and in Surrey there are only 37 children in care per 10,000 of population.
The demand on councils such as County Durham and others in the north-east, and in other urban areas, is far greater than it is on Surrey. Demand for statutory services, which councils have to provide, is going up and they are very costly. At the same time, core funding from the Government is being taken away from some areas and redistributed to areas such as Surrey, which is not just flatlining but receiving an increase in funding. I am sorry, but that just cannot be fair.
I said at the start of my speech that the direction of travel has been pork barrel politics of the worst type, doling out money to people who vote Conservative in certain parts of the country. The problem for the Conservative party is that the pork barrel has got bigger. The big test will be whether the Government can actually spread that around the country and meet all the pledges they have made. I doubt whether they can, because this has not just happened in local government funding. On fire and police, the direction of travel has not just been cuts, but moving revenue collection to local taxpayers. For example, the Government announced an increase in the amount of money going into policing, but that has been moved on to local taxpayers. Councils like Durham County Council are less able, because of their council tax base, to raise that type of financing.
I do not like using the phrase “fairer funding formula review”, because I do not think it is that at all. I doubt whether the new system will be, either. A lot of promises have been made and we shall have to wait and see whether they will actually be met. I will work with anyone to ensure that County Durham gets a fair hearing. I am sad that my new Conservative colleagues are not here today to join me in demanding fairer funding for County Durham, but I will certainly press the case for County Durham to receive the fair funding deal it wants.
I will end with a point raised by the Minister. I came from local government. I was a councillor for 11 years. I respect, and am very grateful for, the work done by councillors of all parties. They are remunerated at a very low level for the amount of work they do. However, I find it a bit difficult to take it from this Government, who have demonised certain people in local government over the past few years and used them as scapegoats for decisions that have been taken—[Interruption.] The Minister says codswallop, but I remember—as I am sure we will witness again in the next few weeks in the local government elections—the Government using the issue of pay and so on in local government to argue that local councils were being profligate. Those are diversionary tactics to remove attention from the core issue, which is that the Government have decimated local government over the past 10 years. We shall wait and see happens in the review, but I shall continue to make the case to ensure that the people of County Durham get the funding and services they require from what is a very good council, and to ensure that the Government have a formula funding that is not only fair but equal across the country, and recognises need.
(4 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a half-hour debate, so I call the Minister to respond.
If the hon. Member for Putney (Fleur Anderson) wants to speak briefly, I will make my response quick.
In that case, I call Fleur Anderson to make a very short speech.
I think this is the first time I have served under your chairmanship in this Parliament, Mr Hosie. I congratulate the hon. Member for Ealing Central and Acton (Dr Huq) on securing an important and very enjoyable debate. I welcome her comments about her constituency, which painted a picture of the suburban lifestyle in its most modern of settings. It is quite right that we take this opportunity to discuss some of the challenges that people living in suburbia face in London and elsewhere.
To pick up on the hon. Lady’s comments about voter volatility, she pointed to some high-profile wins for her party at the general election. If she and her colleagues ventured north and joined me in the northern powerhouse, she would note that Heywood and Middleton, Bolton, Bury North and Bury South are similar in many ways to the areas that she highlighted, but their voter volatility was in the opposite direction. I think what that shows is that there is dissatisfaction with the status quo in many areas, and sometimes people who have concerns about their area are rebelling against the status quo, not in one particular direction or the other.
I will start by addressing the questions she asked, as I would like to cover those before I come on to set out the departmental agenda. I am sure no one will weep if I do not get the opportunity to read the voluminous notes handed to me by my civil servants—I can show them to hon. Members at the end if they want.
The first question raised by the hon. Lady was in relation to deprivation, its spread across cities and the challenge of deprivation in inner and outer areas of cities. I have been concerned about this issue for some time, and it is absolutely right that we give it an airing in this House. I do not think that any Government over the past three decades have properly grasped the challenges. There are often significant pockets of deprivation in suburban areas, smaller towns and rural areas, which are not as easily mappable, or for which the Government have failed to have a real plan. It has therefore fallen to local authorities—which have in-depth knowledge of the communities that they have the privilege of representing, as do hon. Members in this House—to tackle those challenges. The hon. Lady is quite right to say that funding for local authorities has to be done in a dynamic way that can recognise pockets of deprivation, no matter how small or large, whether in major city centres, suburban areas or areas further outside the city.
The fairer funding formula that we are currently looking at includes deprivation as one factor, but I agree with the hon. Lady—we are certainly listening—about the challenge in addressing how funding can be dynamic and change rapidly as circumstances change. It is unacceptable that those pockets of deprivation have for decades been allowed to grow without being properly challenged or without any Government of any political hue suggesting a proper solution. We should certainly seek to tackle that in the fairer funding formula.
I recognise the Minister’s approach in saying that for many years pockets of deprivation have established themselves in places such as my constituency and others, and they must be addressed. Will he also acknowledge, however, that changes in recent years to the benefits system, particularly to caps on local housing allowance and other benefits that people on low incomes receive to rent privately in London, have caused a rapid shift of population from inner to outer London, and that that needs to be given particular attention?
We absolutely do continue to give that attention. It is a real London issue but certainly not a London-only issue—it is a metropolitan issue—but I am afraid to say that when I entered Parliament in 2010, the benefits system had lost public trust. The benefits system has to be fair for those people who, quite rightly, rely on it—any of us at any point in our lives could fall through the gaps and need a safety net to catch us, and I am proud to live in a country where that safety net exists—but it also has to be fair for taxpayers, who get up in the morning, go to work and pay their taxes to fund the benefits system. My personal opinion is that, in 2010, what brought forward the benefits cap was the lack of fairness in the system. We could probably have a separate debate about that. We would certainly need more than a brief half-hour debate to get to the bottom of it.
The link between planning permissions and biodiversity is a hugely important issue. I commend the hon. Member for Ealing Central and Acton for picking up on that issue from the Queen’s Speech. Tackling the climate emergency is probably the greatest challenge that any of us will face in our time in Parliament. The hon. Lady will of course be aware that the national planning policy framework currently has biodiversity net gain as one of its planning principles. Should the Government go further? Yes, and we will, and that is why we brought forward the additional protections that we talked about, including protecting nature by mandating biodiversity net gain into the planning system; ensuring that houses are not built at the expense of nature; and delivering viable natural spaces for communities. We will make sure that we improve and protect habitats and that areas have a local nature recovery strategy. We want to give local communities a greater say through the planning system and our planning White Paper, not least so they can have a greater say on protecting local trees, which, as hon. Members know, is often an issue that exercises our constituents, and quite rightly so.
The hon. Lady also raised concerns about density and high-rise development. Of course, all local planning decisions are a matter for the local council, in many ways in concert with the Mayor of London. If we look across the country, however, we see that such communities are a great way of tackling the housing shortage across the UK, and that they often lead to better communities with a greater concentration of services in one place. Often, people prefer to live in a more dense, as opposed to sparse, community, although many people may decide to move to the suburbs for the exact opposite reason. That is why planning is driven locally.
In terms of business rates and protection for suburban high streets, business rate localisation is again about giving those who are on local councils power to drive the ambition that they will know better than any Government Minister—maybe not better than the local Member of Parliament, but certainly better than any Government Minister. However, there is a wider agenda about protecting high streets and ensuring that they thrive, which we are addressing through the future high streets fund. In the prospectus, we acknowledged that suburban high streets could bid for that fund. They are a very important community asset and the Government should rightly ensure that they are protected.
The hon. Member for Putney (Fleur Anderson) spoke about youth funding and youth clubs. If she has read our manifesto, she will have seen that it made a significant financial commitment to a youth fund, which will come forward with many millions of pounds to ensure that we can increase youth provision in our communities. The Blackburn Youth Zone is on the border of my constituency and I know the huge contribution it makes to people’s lives. We must build on that.
Hon. Members also raised the issue of crime. It is correct that we seek to protect all communities, and we will do that by increasing the number of police officers on the street.
On the cross-London suburban taskforce—
Right. On the cross-departmental suburban taskforce, I think the idea has merit. The hon. Lady said that one of her famous constituents is called Naughty Boy—I don’t think she was referring to me. On the basis that the Government are not currently proposing such a taskforce, why does the hon. Lady not be a bit naughty and set it up herself? Once it is up and running with some recommendations, I will happily meet her and other members of the taskforce to discuss how we can drive that agenda across Government.
Question put and agreed to.
(4 years, 7 months ago)
Commons ChamberThe reason that, in just 10 days’ time, we on this side of the House are getting Brexit done is so that we can drive growth across our United Kingdom. From Clacton to Caithness, from Holyhead to Hull, we will be investing millions of pounds in communities, not least £2.5 million in the coastal community of Clackers.
(4 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to appear under your chairmanship, not for the first time, Sir George. With a general election looming, and given that there are marginal seats across north-west England, it might be the last time for a while.
I am proud to have been born in Aigburth, to have attended Liverpool College, and to have spent my entire life before the age of 18 living in the great city of Liverpool, so I was really keen for the opportunity to respond to the debate. I congratulate the hon. Gentleman on securing this debate, which is important not just for his constituents, but for north-west England. As a fellow north-west MP, I think a thriving Liverpool city region is about creating a thriving northern powerhouse.
I want to focus briefly on facts, because the hon. Gentleman talked a lot about the role Liverpool has played in cutting the deficit since the economic crash of 2007-08. I do not want to get into the politics of what might or might not have caused the crash, but it is absolutely clear that in an environment of reducing budgets, local government across our United Kingdom—but particularly in England, for the purposes of this debate—has played its part. However, the core spending power in Liverpool has increased every year since 2015; the increase this year will be some £9.2 million. I hope that reflects the fact that we are moving from a decade or thereabouts of recovery to one of renewal, in which local authorities must play their part, as an economic partner of Government, in driving the wider economy.
Wider investment in the Liverpool city region is so important to the hon. Gentleman’s constituents, and the constituents of other hon. Members; I am sure they would want me to focus briefly on that, before I address the two questions raised in the debate. I was really pleased that £172 million from the transforming cities fund went to the Liverpool city region. Having spent a considerable period of my life going around south Liverpool on a bike, and given that we are looking to address the climate emergency, which Liverpool City Council has been very forward-thinking in bringing to the fore, I was pleased to hear that £16 million of the fund will be invested in walking and cycling infrastructure in the city.
Another £460 million will be invested in the Merseyrail system—the Liverpool tube system, as it was described to me by a friend from London who recently visited the city. I went to school on those trains, sometimes via a slightly roundabout route. For my first job, I used to travel on the Merseyrail from Cressington station all the way to Moorfields. The trains were pretty terrible 20 years ago—or even 35 years ago, when I used to get them. I am very pleased that the money, which comes from a partnership between the council, the Liverpool city region and the Government, will be invested in the transport infrastructure.
Those of us who have spent long periods of our life sat on the Runcorn bridge will agree that the £1 billion invested in the new Mersey Gateway—£600 million was direct Government funding—shows the Government’s ambitions for the region. Many of those ambitions have been focused through the Liverpool city region devolution deal; the core funding for the devolution deal is some £900 million over the initial period. More importantly, it is about taking power, money and influence away from Whitehall and returning it to the great city of Liverpool. Those of us who grew up there in the 1980s know that Liverpool is rejuvenated, and has undergone a renaissance since the very dark days of deprivation, industrial decline and political chaos. The devolution deal is a really important step in ensuring that the renaissance continues.
I do not have to tell any MPs here who represent Merseyside seats, including you, Sir George, that Liverpool is the only city ever to have had its own Department in Whitehall. At one point, Liverpool contributed more to the Exchequer than the entire City of London. Arguably, Liverpool is the city that invented globalisation, and it certainly has always had the mercantile economy at its heart. Anything we can do to drive jobs and growth back into the city is something that we should work on together.
I am a strong supporter of the city region devolution. The deal the Minister describes is welcome. However, the strong sense in Liverpool is that what the Government have given the city region with one hand does not make up for what they had taken away with the other, particularly from some of our most deprived communities. Does he recognise that concern?
I will come on to address the hon. Gentleman’s specific points, but it is worth focusing on what happened in Liverpool. Across this House, we want to be optimistic for the people we represent, and there is real optimism in Liverpool. There are challenges, and have been for as long as I have known the city, which is my entire life, but on many occasions, sometimes in this building, people from across public life want to talk down to Liverpool. I want this debate to be an opportunity to celebrate everything that is fantastic about that city.
I share with my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg) and the Minister their categorisation of Liverpool as that vibrant, optimistic and positive city. Over the course of what will soon be a decade, however, the city has done so much in spite of the Government, and not because of it. My hon. Friend laid out many things that have happened, and I have a whole list in front of me of cuts, including to our fire service, the police service, the health grant formula—that is the current reality—or the early intervention grant to give every child born in Liverpool the best chance of the best start in life. Despite the cumulative impact of all those things, Liverpool has soldiered on—but that does not take away from the reality of what the city is contending with after nearly 10 years of cuts.
It will come as no surprise to the hon. Lady that I disagree with her. Lots of what I am talking about—the £900 million devolution deal, the £1 billion for the Gateway crossing, the £330 million from the local growth fund, and the £140 million upgrade of Lime Street station, which I am pleased about, because it was awful when I was growing up, and it is a fantastic building now—is a partnership. I hope that this debate can be about what Liverpool, the Government, the mayors and the metro Mayor can do together to drive the city. I know that that is the spirit in which the hon. Lady would wish me to respond to the debate.
Liverpool City Council has some challenges with funding, as well as other issues. It has £100 million of uncollected council tax arrears, which it should do something about, because that is very high from a national perspective. Its chief executive’s remuneration package is £461,823, which is absurd and not something that should be supported by the council, although it is, because it will have been voted on by the council. In fact, the council has 57 employees across Merseyside who earn more than £100,000 each. The age of austerity might be writ large over many parts of the council, but it has not yet reached the chief executive’s remuneration package, and there are things that the council could do, such as recover some of the £100 million of council tax arrears.
The partnership approach, however, which I hope Members across the House support, is part of the story of renaissance in Liverpool. I agree with the spokesman for Liverpool City Council who, earlier this year, said that Liverpool is undergoing a regeneration boom, with £14 billion of development schemes being delivered or in the pipeline. I pay tribute to the work of the city council in transforming the city, despite having maybe played its part in the decade of recovery from the global economic crash. Despite reductions in the amount of money the city has to spend, it is thriving and booming. People do not need to take my word for it, because anyone can visit the city—in fact, I recommend that they do. And we have not even talked about having the best football team in Europe, although that might be controversial; I do not know whether any Evertonians are present.
Why does all that matter? It matters because the Government are serious about delivering a northern powerhouse—a growing northern economy for all our constituents, including mine and yours, Sir George. Liverpool must be at the heart of that regeneration, and of the renewal of the north of England. That is why I am so pleased that the Prime Minister recently set out his agenda to level up all the powers of the metro Mayors—to ensure that Steve Rotheram has the same powers as Andy Burnham—so that we can drive Liverpool’s economy. I fully support that, and I hope and believe that Steve Rotheram, who has had discussions with me and with the Prime Minister about that agenda, will come out in support of it.
That is also why we have levelled up education funding. The hon. Member for Liverpool, West Derby, started the debate by talking about a school in his constituency, and I echo his tribute to all those working in our public services in Liverpool, Merseyside, the wider north-west and our entire country. That is why we are increasing funding for the NHS and the number of police on our streets. It is the poorest in our society, wherever they may be in England, who rely most heavily on the NHS and public services. That is why I applaud the Prime Minister’s ambition to level up.
I welcome the additional powers for the city region Mayor, and I pay tribute to Steve Rotheram for his work. I absolutely echo what the Minister said about the renaissance in the city centre, but I represent suburban east Liverpool, and it does not always feel that way in some of the communities that I represent. They are much more reliant on the council services that I focused on in my speech, so I am absolutely with him on the importance of the city region and investment in it, but we need to ensure that the basic services get their funding as well.
I accept that. In my penultimate point, I will address the two points raised by the hon. Gentleman about the real purposes of the debate. First, on an urgent meeting, I am not able to promise that the Secretary of State will meet the hon. Gentleman and his colleagues urgently. However, I am more than happy to meet them myself, which is a promise that I can make. I am sure that he will be in touch, or my private office will be in touch—subject to the limited opportunity that might be available if the election motion passes today. If it is at all possible, I will certainly do that. I have always taken great pride in being from Liverpool. In fact, my grandparents lived in the hon. Gentleman’s constituency, in a place called Hayman’s Green, just behind the village centre in West Derby, so I know his constituency extremely well.
Finally, on the royal commission, the future of local government funding is something that would of course be set out in a Budget, but it appears that we will not have a Budget before 6 November. I suggest that the hon. Member for Liverpool, West Derby, keeps a close eye on what might be in a Budget. However, I reassure him on the point about the proportion of council tax properties in different bands. Since 2016-17, distribution of resources in the central grant system has taken into account the banding of council tax and business rates payers in the city. We believe that we have addressed that, which historically has been a major problem for cities such as Liverpool.
In conclusion, I hope that the hon. Gentleman, like me, occasionally gets the opportunity to visit the Pier Head. When I do, I look at the “Three Graces” buildings, including the Royal Liver building and the Cunard building, and all the fantastic architecture, and I am always struck by the fact that those buildings show their best face to the world. In fact, the back of the buildings, facing Saint Nick’s church, are relatively plain. Their best face looks out to sea, and that is what Liverpool has always done and will continue to do. After we leave the European Union, a global Britain can be led once again by a global Liverpool.
Before I bring the proceedings to a conclusion, I use the privilege of the Chair to thank the hon. Member for Liverpool, West Derby (Stephen Twigg) and the hon. Member for Liverpool, Wavertree (Luciana Berger) for the service that they have given. I also wish them well in the future, whichever direction that may take them.
Question put and agreed to.
(4 years, 10 months ago)
Commons ChamberAs part of delivering our northern powerhouse, my right hon. Friend the Prime Minister has committed to 100% devolution across the north of England, but in Greater Manchester, power must come with responsibility. That is why last May, the people of Bolton threw off the yoke of their Labour council after 40 years. The new Conservative leader, David Greenhalgh, will end Andy Burnham’s era of impunity.