Draft Northamptonshire (Structural Changes) Order 2019

Jim McMahon Excerpts

Monday 10th February 2020 General Committees

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Gray.

None of this is new. We have been anticipating a conclusion and, in some ways, I welcome the fact that we are now beginning to get to the end. At least the local authorities that will be created there can begin to rebuild public services in their area. As time has gone by, without doubt public services in those areas have been affected.

We ought not to forget why we are here in the first place: the financial crisis that was created in Northamptonshire and led to commissioners going into the council. We are now at the end of the process, but it meant that spending on all but non-essential services stopped completely on two separate occasions. To help fund the gap, £17 million of capital was given, which effectively involved a fire sale of the assets owned by the county council. The reason for that was pretty self-evident. A lot of the neighbourhood services, regulatory services, public protection services and housing, which are delivered by the boroughs in metropolitan areas such as London, have been squeezed to help fund adult social care and children’s services. In a two-tier area, the county bears the pressure of adult social care and children’s services without the ability to squeeze the neighbourhood services that are being decimated elsewhere around the country.

There were particular problems in two-tier areas. The order will not resolve those structural problems, and neither will the fair funding review. The truth is that there is not enough money in the system to fund adult social care. That is relevant, because the funding base was why we have ended up with the reorganisation that we are now discussing and reaching a conclusion on. The fair funding review will mean that money is just being shifted around the system.

[The Chair]

Order. The hon. Gentleman must stick to the statutory instrument that we are currently considering.

[Jim McMahon]

The Government will need to be able to convince not just the Opposition, but the residents of the two new unitary authorities, that there is enough money in the system to fund services. What is the point of reorganisation if it does not deal with the crisis that led to it in the first place?

I make this call whenever we discuss reorganisation, particularly in two-tier areas where there is not entire agreement among the component local authorities. When a new authority is created, there is sometimes a danger that, in order to assert its own identity, it almost tries to erase the identity of all that went before it. We need to make it clear that the people who administer public services in an area do not make the identity of the place. It is important that the historical identities of local communities are respected through the reorganisation, and that councillors keep an eye on that throughout the transition period.

I place on the record for Hansard my thanks to Councillor Tom Beattie, the leader of Corby District Council, for the fantastic work that he has done. I hope that one day Labour will control those two unitary councils, but I think that we are some way away from that. Councillor Beattie’s sterling work in steering Corby District Council over a number of years has not gone unnoticed, and I place on the record that he is one of our best in local government.

It has been a very turbulent time for councillors, public officials and the people who work for the local authorities concerned. Although there is not entire agreement among local councils that this is the right move, it will at least settle the matter. Hopefully they can rebuild and move on.